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Egypt Tobacco Market- Growth, Trends, and Forecast (2020 - 2025)

Egypt Tobacco Market- Growth, Trends, and Forecast (2020 - 2025)

  • November 2020
  • 124 pages
  • ID: 5989487
  • Format: PDF
  • Mordor Intelligence LLP

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Egypt Tobacco Market is expected to register a CAGR of 7.16% during the forecast period of 2020-2025.

- Changing lifestyle, continuous product innovation in terms of flavor, size, ingredients, nicotine level, coupled with consumer’s belief that smoking reduces stress and anxiety, are some of the major factors propelling the growth of the market studied.
- Additionally, factors, such as consumer knowledge and increase in awareness of products and services, through social media, like Facebook and other sources, coupled with the advent of digital media, are educating consumers about the benefits of low tar, low nicotine, organic, and smokeless products. This, in turn, is driving the demand for e-cigarette and other advanced tobacco products.

Key Market Trends
Rising Popularity For Low Tar, Nicotine Products

To reduce the use of conventional/combustible cigarettes, consumers in the region are increasingly using e-cigarettes, snuff, and low tar cigarette products concurrently. Also, as e-cigarettes mimic the experience of smoking conventional/combustible cigarettes, consumers are significantly using them to satisfy their nicotine dependency, is driving the market. Furthermore, e-cigarettes, snus, and other products have lower levels of the carcinogen compared to combustible smokers. In addition, increasing cases of tobacco-related cancer across the region and most cases being related to cigarette smoking has resulted in the public looking for alternatives. Moreover, E-cigarettes do not produce the tar that is produced by regular cigarettes, which is the main cause of lung cancer. According to the World Health Organization, the age adjusted death rate is 7.59 per 100,000 population due to lung cancer in the market.

Shisha Segment is Growing At The Fastest Pace

Shisha is a traditional tobacco product, and/or flavored, syrupy used in hookah or waterpipe which is also known as Shisha maassel. According to a study on shisha smokers conducted by Central Agency For Public Mobilization and Statistics, 81 % were found to be spending 10% of their income on daily shisha consumption. Moreover, the prevalence rate of their smoking shisha is relatively higher than other tobacco products, with a regular rate of 8.7%. Moreover, younger adults who smoke shisha tend to smoke more often with friends, and it is a popular social activity among the consumers in the market. Furthermore, most of the female shisha (waterpipe smokers) consumer had the perception of the product as fashionable and believed that waterpipes are less harmful than cigarettes. Smoke apple, watermelon, strawberry, orange coffee, and other flavored shisha are growing in the market. Thus, owing to the high market potential, foreign brands are investing to. For example, Japan Tobacco Inc. has acquired Al Nakhla Tobacco Company a major shisha/molasses company and widened its brand portfolio in the segment.

Competitive Landscape
The tobacco market in Egypt is competitive with the presence of various regional and global players in the market. The well-established companies and imported brands have higher availability across retail shelves in the country. The Eastern Tobacco Company (ETC) holds a significant share in the Egyptian tobacco market, with the share of 55%, followed by Phillip Morris International and British American Tobacco. The Egyptian e-cigarette market is low on competition with the presence of imported/foreign brands operating in the segment. In the market studied, well-established companies, with known brands attached to their business profiles, have a higher penetration across speciality retailers, mostly on account of business expansion as well as operating businesses through online channels.

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