Saudi Arabia - Tobacco Market by Distribution Channel, Product and Product Type - Forecast and Analysis 2023-2027

Published: Oct 2023 Pages: 118 SKU: IRTNTR76504

Saudi Arabia - Tobacco Market 2023-2027

The Saudi Arabia - Tobacco Market size is projected to increase by USD 1,671.2 million and the market size is estimated to grow at a CAGR of 3.4% between 2022 and 2027.

This Saudi Arabia tobacco market report extensively covers market segmentation by distribution channel (offline and online), product (combustible tobacco products and smokeless tobacco products), and product type (cigarettes, cigars, and smoking tobacco). Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.

Increasing number of organized retail outlets selling tobacco products is the key factor driving the growth of the market. Organized retail has grown globally with the establishment of new supermarkets, drug stores, convenience stores, hypermarkets, and specialty stores. In addition, the increasing number of organized retail outlets that sell tobacco products is also showing increased competition among market players. Tobacco companies are investing in branding and marketing actions to differentiate their products and gain a larger market share. Further, the increase in the number of organized retail outlets coupled with the rise in the sale of tobacco products will drive the growth of the Saudia Arabia tobacco market during the forecast period. 

Saudi Arabia Tobacco Market: Overview

The  Saudi Arabia Tobacco Market shows an accelerated CAGR during the forecast period.

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Trends

Growing e-commerce in Saudi Arabia is the primary trend shaping the growth of the market. With the growth of e-commerce businesses in Saudi Arabia, the market players have the potential to enhance their profitability. Online and e-commerce channels support business-to-business (B2B) as well as business-to-consumer (B2C) operations. Online shopping portals have also incorporated enhanced security features for efficient customer service and payments. 

In addition, market players will be able to reduce their operating and overhead costs due to this business model. The number of online retail stores offering cigars, cigarillos, fine-cut tobacco products, and smokeless tobacco products has also grown significantly across the globe. Hence, the growth in the online retail business of tobacco products is expected to drive the growth of the market in focus during the forecast period.

Challenge 

The increasing popularity of substitutes is a challenge that affects the growth of the market. The Saudi Arabia - tobacco market is facing intense competition from substitute products such as e-cigarettes, heat-not-burn (HNB) products, vaping products, and other next-generation products (NGPs). Furthermore, nicotine replacement therapy products, such as lozenges, gums, nasal sprays, and inhalers, have emerged as suitable substitutes for tobacco products.

Furthermore, growing health consciousness among consumers and an increasing number of cancer cases caused by smoking tobacco products in Saudi Arabia have resulted in consumers seeking smoke-free and safer alternatives for tobacco products. The rising launches of NGPs have translated into declining customer interest in conventional tobacco products. Thus, these challenges are expected to impede the growth of the market during the forecast period.

Saudi Arabia Tobacco Market Segmentation by Product 

Cigarettes form the major product in the combustible tobacco products segment, followed by traditional shisha (hookah), which has traditionally dominated the Saudi Arabia - tobacco market. Despite global trends towards lower cigarette consumption, these products remain popular. However, growing public knowledge of the health dangers connected with tobacco use has resulted in certain government attempts to reduce smoking, such as greater taxes and public education programs. Nevertheless, combustible tobacco products remain a popular choice, posing both challenges and opportunities for the tobacco business and Saudi public health efforts. Overall, the rising demand for combustible tobacco products is increasing the growth of the combustible tobacco products segment as well as the Saudi Arabia tobacco market during the forecast period.

Saudi Arabia Tobacco Market Segmentation by Distribution Channel

The market share growth by the offline segment will be significant during the forecast period. The offline channels contain convenience stores, supermarkets, hypermarkets, tobacco specialty shops, and gas stations. In the offline segment, the majority of tobacco sales come from convenience stores and supermarkets, where cigarettes and other tobacco products are usually placed near the cash register to entice customers into making impulse purchases. 

The offline segment was valued at USD 7,309.20 million in 2017 and continued to grow until 2021.

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Additionally, offline distribution channels provide tobacco companies with the opportunity to engage in direct marketing to consumers through in-store displays and promotions. Due to the large market share and sale of tobacco products from traditional offline retail outlets such as convenience stores, supermarkets, tobacco specialty shops, gas stations, and vending machines, the offline segment will contribute to the growth of the market in focus during the forecast period.

Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

  • Key Offering- Altria Group Inc.: The company offers tobacco products such as Heated tobacco products which include bonds by Iqos, Iqos iluma, Iqos iluma prime, Iqos originals, and many more, under the subsidiary of Philip Morris International Inc.
  • Key Offering- British American Tobacco Plc: The company offers tobacco products under the brand names of Vuse, Velo, Pall mall, lucky strike, and many more.
  • Key Offering- Imperial Brands Plc: The company offers tobacco products under the brand names of Winston, Lambert and Butler, Nobel, and many more.

The Saudi Arabia tobacco market report also includes detailed analyses of the competitive landscape of the market and information about 4 market companies, including:

  • Japan Tobacco Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The Saudi Arabia tobacco market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

  • Distribution Channel Outlook (USD Million, 2017 - 2027)
    • Offline
    • Online
  • Product Outlook (USD Million, 2017 - 2027)
    • Combustible tobacco products
    • Smokeless tobacco products
  • Product Type Outlook (USD Million, 2017 - 2027)
    • Cigarettes
    • Cigars
    • Smoking tobacco 

Saudi Arabia Tobacco Market Scope

Report Coverage

Details

Page number

118

Base year

2022

Historic period

2017-2021

Forecast period

2023-2027

Growth momentum & CAGR

Accelerate at a CAGR of 3.4%

Market growth 2023-2027

USD 1,671.2 million

Market structure

Concentrated

YoY growth 2022-2023(%)

2.9

Competitive landscape

 Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

Key companies profiled

Altria Group Inc., British American Tobacco Plc, Imperial Brands Plc, and Japan Tobacco Inc.

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Saudi Arabia Tobacco Market Report?

  • CAGR of the market during the forecast period
  • Detailed information on factors that will drive the growth of the market between 2023 and 2027
  • Precise estimation of the tobacco market size in Saudi Arabia and its contribution of the market in focus to the parent market
  • Accurate predictions about upcoming trends and changes in consumer behavior
  • Growth of the market across Saudi Arabia
  • A thorough analysis of the market’s competitive landscape and detailed information about companies
  • Comprehensive analysis of factors that will challenge the growth of Saudi Arabia tobacco market companies

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1 Executive Summary

  • 1.1 Market overview
    • Exhibit 01: Executive Summary – Chart on Market Overview
    • Exhibit 02: Executive Summary – Data Table on Market Overview
    • Exhibit 03: Executive Summary – Chart on Country Market Characteristics
    • Exhibit 04: Executive Summary – Chart on Market Segmentation by Distribution Channel
    • Exhibit 05: Executive Summary – Chart on Market Segmentation by Product
    • Exhibit 06: Executive Summary – Chart on Market Segmentation by Product Type
    • Exhibit 07: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

  • 2.1 Market ecosystem
    • Exhibit 08: Parent market
    • Exhibit 09: Market Characteristics

3 Market Sizing

  • 3.1 Market definition
    • Exhibit 10: Offerings of vendors included in the market definition
  • 3.2 Market segment analysis
    • Exhibit 11: Market segments
  • 3.3 Market size 2022
    • 3.4 Market outlook: Forecast for 2022-2027
      • Exhibit 12: Chart on Saudi Arabia - Market size and forecast 2022-2027 ($ million)
      • Exhibit 13: Data Table on Saudi Arabia - Market size and forecast 2022-2027 ($ million)
      • Exhibit 14: Chart on Saudi Arabia: Year-over-year growth 2022-2027 (%)
      • Exhibit 15: Data Table on Saudi Arabia: Year-over-year growth 2022-2027 (%)

    4 Historic Market Size

    • 4.1 Tobacco market in Saudi Arabia 2017 - 2021
      • Exhibit 16: Historic Market Size – Data Table on tobacco market in saudi Arabia 2017 - 2021 ($ million)
    • 4.2 Distribution Channel Segment Analysis 2017 - 2021
      • Exhibit 17: Historic Market Size – Distribution Channel Segment 2017 - 2021 ($ million)
    • 4.3 Product Segment Analysis 2017 - 2021
      • Exhibit 18: Historic Market Size – Product Segment 2017 - 2021 ($ million)
    • 4.4 Product Type Segment Analysis 2017 - 2021
      • Exhibit 19: Historic Market Size – Product Type Segment 2017 - 2021 ($ million)

    5 Five Forces Analysis

    • 5.1 Five forces summary
      • Exhibit 20: Five forces analysis - Comparison between 2022 and 2027
    • 5.2 Bargaining power of buyers
      • Exhibit 21: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027
    • 5.3 Bargaining power of suppliers
      • Exhibit 22: Bargaining power of suppliers – Impact of key factors in 2022 and 2027
    • 5.4 Threat of new entrants
      • Exhibit 23: Threat of new entrants – Impact of key factors in 2022 and 2027
    • 5.5 Threat of substitutes
      • Exhibit 24: Threat of substitutes – Impact of key factors in 2022 and 2027
    • 5.6 Threat of rivalry
      • Exhibit 25: Threat of rivalry – Impact of key factors in 2022 and 2027
    • 5.7 Market condition
      • Exhibit 26: Chart on Market condition - Five forces 2022 and 2027

    6 Market Segmentation by Distribution Channel

    • 6.1 Market segments
      • Exhibit 27: Chart on Distribution Channel - Market share 2022-2027 (%)
      • Exhibit 28: Data Table on Distribution Channel - Market share 2022-2027 (%)
    • 6.2 Comparison by Distribution Channel
      • Exhibit 29: Chart on Comparison by Distribution Channel
      • Exhibit 30: Data Table on Comparison by Distribution Channel
    • 6.3 Offline - Market size and forecast 2022-2027
      • Exhibit 31: Chart on Offline - Market size and forecast 2022-2027 ($ million)
      • Exhibit 32: Data Table on Offline - Market size and forecast 2022-2027 ($ million)
      • Exhibit 33: Chart on Offline - Year-over-year growth 2022-2027 (%)
      • Exhibit 34: Data Table on Offline - Year-over-year growth 2022-2027 (%)
    • 6.4 Online - Market size and forecast 2022-2027
      • Exhibit 35: Chart on Online - Market size and forecast 2022-2027 ($ million)
      • Exhibit 36: Data Table on Online - Market size and forecast 2022-2027 ($ million)
      • Exhibit 37: Chart on Online - Year-over-year growth 2022-2027 (%)
      • Exhibit 38: Data Table on Online - Year-over-year growth 2022-2027 (%)
    • 6.5 Market opportunity by Distribution Channel
      • Exhibit 39: Market opportunity by Distribution Channel ($ million)
      • Exhibit 40: Data Table on Market opportunity by Distribution Channel ($ million)

    7 Market Segmentation by Product

    • 7.1 Market segments
      • Exhibit 41: Chart on Product - Market share 2022-2027 (%)
      • Exhibit 42: Data Table on Product - Market share 2022-2027 (%)
    • 7.2 Comparison by Product
      • Exhibit 43: Chart on Comparison by Product
      • Exhibit 44: Data Table on Comparison by Product
    • 7.3 Combustible tobacco products - Market size and forecast 2022-2027
      • Exhibit 45: Chart on Combustible tobacco products - Market size and forecast 2022-2027 ($ million)
      • Exhibit 46: Data Table on Combustible tobacco products - Market size and forecast 2022-2027 ($ million)
      • Exhibit 47: Chart on Combustible tobacco products - Year-over-year growth 2022-2027 (%)
      • Exhibit 48: Data Table on Combustible tobacco products - Year-over-year growth 2022-2027 (%)
    • 7.4 Smokeless tobacco products - Market size and forecast 2022-2027
      • Exhibit 49: Chart on Smokeless tobacco products - Market size and forecast 2022-2027 ($ million)
      • Exhibit 50: Data Table on Smokeless tobacco products - Market size and forecast 2022-2027 ($ million)
      • Exhibit 51: Chart on Smokeless tobacco products - Year-over-year growth 2022-2027 (%)
      • Exhibit 52: Data Table on Smokeless tobacco products - Year-over-year growth 2022-2027 (%)
    • 7.5 Market opportunity by Product
      • Exhibit 53: Market opportunity by Product ($ million)
      • Exhibit 54: Data Table on Market opportunity by Product ($ million)

    8 Market Segmentation by Product Type

    • 8.1 Market segments
      • Exhibit 55: Chart on Product Type - Market share 2022-2027 (%)
      • Exhibit 56: Data Table on Product Type - Market share 2022-2027 (%)
    • 8.2 Comparison by Product Type
      • Exhibit 57: Chart on Comparison by Product Type
      • Exhibit 58: Data Table on Comparison by Product Type
    • 8.3 Cigarettes - Market size and forecast 2022-2027
      • Exhibit 59: Chart on Cigarettes - Market size and forecast 2022-2027 ($ million)
      • Exhibit 60: Data Table on Cigarettes - Market size and forecast 2022-2027 ($ million)
      • Exhibit 61: Chart on Cigarettes - Year-over-year growth 2022-2027 (%)
      • Exhibit 62: Data Table on Cigarettes - Year-over-year growth 2022-2027 (%)
    • 8.4 Cigars - Market size and forecast 2022-2027
      • Exhibit 63: Chart on Cigars - Market size and forecast 2022-2027 ($ million)
      • Exhibit 64: Data Table on Cigars - Market size and forecast 2022-2027 ($ million)
      • Exhibit 65: Chart on Cigars - Year-over-year growth 2022-2027 (%)
      • Exhibit 66: Data Table on Cigars - Year-over-year growth 2022-2027 (%)
    • 8.5 Smoking tobacco - Market size and forecast 2022-2027
      • Exhibit 67: Chart on Smoking tobacco - Market size and forecast 2022-2027 ($ million)
      • Exhibit 68: Data Table on Smoking tobacco - Market size and forecast 2022-2027 ($ million)
      • Exhibit 69: Chart on Smoking tobacco - Year-over-year growth 2022-2027 (%)
      • Exhibit 70: Data Table on Smoking tobacco - Year-over-year growth 2022-2027 (%)
    • 8.6 Market opportunity by Product Type
      • Exhibit 71: Market opportunity by Product Type ($ million)
      • Exhibit 72: Data Table on Market opportunity by Product Type ($ million)

    9 Customer Landscape

    • 9.1 Customer landscape overview
      • Exhibit 73: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

    10 Drivers, Challenges, and Trends

    • 10.1 Market drivers
      • 10.2 Market challenges
        • 10.3 Impact of drivers and challenges
          • Exhibit 74: Impact of drivers and challenges in 2022 and 2027
        • 10.4 Market trends

          11 Vendor Landscape

          • 11.1 Overview
            • 11.2 Vendor landscape
              • Exhibit 75: Overview on Criticality of inputs and Factors of differentiation
            • 11.3 Landscape disruption
              • Exhibit 76: Overview on factors of disruption
            • 11.4 Industry risks
              • Exhibit 77: Impact of key risks on business

            12 Vendor Analysis

            • 12.1 Vendors covered
              • Exhibit 78: Vendors covered
            • 12.2 Market positioning of vendors
              • Exhibit 79: Matrix on vendor position and classification
            • 12.3 Altria Group Inc.
              • Exhibit 80: Altria Group Inc. - Overview
              • Exhibit 81: Altria Group Inc. - Business segments
              • Exhibit 82: Altria Group Inc. - Key offerings
              • Exhibit 83: Altria Group Inc. - Segment focus
            • 12.4 British American Tobacco Plc
              • Exhibit 84: British American Tobacco Plc - Overview
              • Exhibit 85: British American Tobacco Plc - Business segments
              • Exhibit 86: British American Tobacco Plc - Key news
              • Exhibit 87: British American Tobacco Plc - Key offerings
              • Exhibit 88: British American Tobacco Plc - Segment focus
            • 12.5 Imperial Brands Plc
              • Exhibit 89: Imperial Brands Plc - Overview
              • Exhibit 90: Imperial Brands Plc - Business segments
              • Exhibit 91: Imperial Brands Plc - Key news
              • Exhibit 92: Imperial Brands Plc - Key offerings
              • Exhibit 93: Imperial Brands Plc - Segment focus
            • 12.6 Japan Tobacco Inc.
              • Exhibit 94: Japan Tobacco Inc. - Overview
              • Exhibit 95: Japan Tobacco Inc. - Business segments
              • Exhibit 96: Japan Tobacco Inc. - Key news
              • Exhibit 97: Japan Tobacco Inc. - Key offerings
              • Exhibit 98: Japan Tobacco Inc. - Segment focus

            13 Appendix

            • 13.1 Scope of the report
              • 13.2 Inclusions and exclusions checklist
                • Exhibit 99: Inclusions checklist
                • Exhibit 100: Exclusions checklist
              • 13.3 Currency conversion rates for US$
                • Exhibit 101: Currency conversion rates for US$
              • 13.4 Research methodology
                • Exhibit 102: Research methodology
                • Exhibit 103: Validation techniques employed for market sizing
                • Exhibit 104: Information sources
              • 13.5 List of abbreviations
                • Exhibit 105: List of abbreviations

              Research Framework

              Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

              INFORMATION SOURCES

              Primary sources

              • Manufacturers and suppliers
              • Channel partners
              • Industry experts
              • Strategic decision makers

              Secondary sources

              • Industry journals and periodicals
              • Government data
              • Financial reports of key industry players
              • Historical data
              • Press releases

              DATA ANALYSIS

              Data Synthesis

              • Collation of data
              • Estimation of key figures
              • Analysis of derived insights

              Data Validation

              • Triangulation with data models
              • Reference against proprietary databases
              • Corroboration with industry experts

              REPORT WRITING

              Qualitative

              • Market drivers
              • Market challenges
              • Market trends
              • Five forces analysis

              Quantitative

              • Market size and forecast
              • Market segmentation
              • Geographical insights
              • Competitive landscape

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              Key Questions Answered

              • What are the key global market and the regional market share?
              • What are the revenue-generating key market segments?
              • What are the key factors driving and challenging this market’s growth?
              • Who are the key market vendors and their growth strategies?
              • What are the latest trends influencing the growth of this market?
              • What are the variables influencing the market growth in the primary regions?
              • What are the factors influencing the growth of the parent market?

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