MENA Tobacco Products Market: Current Analysis and Forecast (2023-2030)

Tobacco products encompass various items made from the leaves of the tobacco plant, primarily used for smoking, chewing, or vaping. These include cigarettes, cigars, pipe tobacco, chewing tobacco, snuff, and electronic cigarettes. While these products can be legally purchased and consumed by adults in many countries, they are known to pose significant health risks, including addiction, respiratory diseases, and various types of cancer. It is important to be aware of the health implications associated with the use of tobacco products and to make informed decisions regarding their usage.

The MENA Tobacco Products Market is expected to grow at a strong CAGR of 7.0 % during the forecast period (2023-2030). The Middle East region has witnessed a significant increase in the adoption and consumption of tobacco products in recent years. This growing trend can be attributed to various cultural, social, and economic factors. Tobacco has long held a significant place in the traditions and customs of many communities in the Middle East, being deeply intertwined with social gatherings, ceremonies, and personal habits. Additionally, the availability and affordability of tobacco products, coupled with minimal regulations and marketing restrictions, contribute to the rising usage rates. Furthermore, the tobacco industry's aggressive marketing campaigns and promotional strategies have targeted the Middle East market, enticing individuals with an array of flavors, styles, and packaging options. Despite global health warnings and efforts to curb smoking, the Middle East continues to experience a surge in tobacco consumption, necessitating enhanced awareness programs and policies to address the associated health risks.

Based on the product type, the market is bifurcated into cigrarettes, smokeless tobacco, cigars, e-cigarettes, and others. Cigarettes will grow with the significant CAGR during forecast period. Despite increasing awareness about the health risks associated with smoking, cigarettes continue to gain popularity among individuals across various age groups and socioeconomic backgrounds. Socio-cultural factors, such as the perception of smoking as a symbol of social status and adulthood, contribute to the widespread acceptance of smoking in this region. Additionally, the influence of tobacco advertising and marketing, coupled with the availability of affordable cigarettes, has further fueled this upward trajectory.

Based on the Distribution Channel, the market is bifurcated into hypermarket & supermarket, grocery stores, and others. Hypermarket & supermarket segment will grow with the significant CAGR during forecast period. This trend can be attributed to various factors such as the increasing urbanization, rising disposable incomes, and changing lifestyles of individuals in the region. Hypermarkets and supermarkets provide a one-stop shopping experience, offering a wide range of products including tobacco products, which dramatically simplifies the purchasing process for consumers. Moreover, these large-scale retail formats ensure better product availability, competitive pricing, and convenient locations, making them an attractive option for tobacco consumers.

For a better understanding of the market adoption of the tobacco products market, the Middle East market is analyzed based on its worldwide presence in countries such as Saudi Arabia, UAE, Lebanon, Jordan, and the Rest of MENA. The adoption of tobacco products in Lebanon has witnessed significant growth in recent years. Lebanon's cultural fabric intertwines deeply with tobacco consumption, making it a prevalent practice despite health warnings and anti-smoking initiatives. Smoking is profoundly rooted in Lebanese social life, regarded more as a cultural norm than a mere habit. Cafes and restaurants are enclaves where smoking is embraced, augmenting the social allure of tobacco. The tradition of smoking hookah holds a particular sway, with a myriad of flavored blends enjoyed across different age groups. Lebanon's vibrant social scenes, where smoking is synonymous with traditions of hospitality and socializing, foster an environment where tobacco use remains ingrained despite health concerns and regulatory efforts. Moreover, Lebanon is a net importer of raw tobacco. According to Comtrade data, in 2022, it imported over USD 40.5 million in raw tobacco, compared to under USD 16.4 million in exports. Lebanon is also a net importer of cigarettes. In 2022, Lebanese cigarette imports were nearly USD 16.5 million, compared to less than USD 1 million in exports.

Some of the major players operating in the market include Altria Group, Inc., Ltd., British American Tobacco., Swedish Match AB, Japan Tobacco International, Philip Morris Products S.A., ITC Limited, Habanos S.A, Vector Group Ltd., Tabacos Montze Paz & Imperial Brands plc.