Tobacco in 2024: The big picture
Algeria’s tobacco market recorded solid growth in current value terms in 2024. However, when adjusted for inflation, performance was more muted, reflecting the erosion of purchasing power among lower- and middle-income consumers. Compounding these pressures, the government enacted significant fiscal measures targeting tobacco consumption. Article 140 of the 2024 Finance Law increased the tax on tobacco products from DZD37 to DZD50 per pack or box, as part of a broader public health initiative. These tax hikes, combined with lingering inflationary effects, pushed many consumers toward more affordable tobacco alternatives, leading to a noticeable decline in sales of premium brands. At the same time, the continued depreciation of the Algerian dinar - driven by the broader economic crisis - raised import costs, contributing to higher average unit prices across all tobacco categories. As a result, a growing number of cigarette smokers have been shifting to lower-cost brands.
2024 key trends
Cigarettes continue to dominate the tobacco market in Algeria, driven by their widespread availability and the broad spectrum of price points catering to various income levels. Despite rising average unit prices - largely the result of consecutive tax hikes - the number of cigarette smokers remains on the rise. This persistent growth in demand is largely attributable to the lack of serious government anti-smoking campaigns and the relatively slow adoption of health-conscious lifestyles among the general population.
Competitive landscape
The competitive landscape of Algeria’s tobacco market remained largely stable in 2024, despite challenges posed by geopolitical tensions and rising production costs driven by both global and local inflationary pressures. STAEM Algérie Spa maintained its dominance, with a diverse portfolio of cigarette brands spanning a wide range of price points. Also the market’s most dynamic player, STAEM successfully navigated consumer shifts across price bands, benefiting from increased demand for more affordable cigarettes. The company operates through three key divisions: Philip Morris, Japan Tobacco International, and Imperial Tobacco Group.
Retail developments
Small local grocers continued to dominate tobacco distribution in 2024, with little change expected over the forecast period. This stability is largely due to restrictive legislation that limits competition from alternative retail channels. Furthermore, the delayed legalisation of nicotine e-liquids has hindered e-vapour products from gaining entry into large, chain-operated modern grocery retailers.
What next for tobacco?
Overall, the tobacco market in Algeria is expected to register modest, albeit positive growth in constant value terms (at 2024 prices) over the forecast period. Demand will likely be tempered by the continued impact of anti-smoking campaigns and price increases driven by successive tax hikes. However, despite these factors, alongside the anticipated slow recovery in the Algerian economy, tobacco consumption tends to be driven by ingrained demand. Moreover, a projected decline in illicit trade volumes may also provide a small boost to official cigarette sales. Indeed, cigarettes are set to remain the dominant category, supported by their widespread availability and broad range of price points catering to various consumer segments.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Algeria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
If you're in the Tobacco industry in Algeria, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Tobacco in Algeria report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Tobacco in Algeria?
- Which are the leading brands in Tobacco in Algeria?
- How are products distributed in Tobacco in Algeria?
- Which category is the most heavily taxed in Algeria?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Algeria?
- How has COVID-19 impacted demand?
- How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
- Where is future growth expected to be most dynamic?
Tobacco in Algeria
Tobacco in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
What next for tobacco?
Legislation
Legislative overview
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Advertising and sponsorship
Advertising through media (television, radio, billboards, consumer press, trade press, cinema, etc.)
Advertising through retail point-of-sale
Sponsorship of sporting/music events
Distribution of tobacco-branded gifts (e.g. cigarette-branded lighters, pens, etc.)
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Reduced harm
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Algeria
KEY DATA FINDINGS
Rising unit prices and economic hardship slow cigarette volume growth in 2024
Global heavyweights, led by STAEM Algerie SpA, maintain their dominant positions
Small local grocers remains preferred distribution channel
Mid-price cigarettes to gain further ground
High tar cigarettes will retain popularity
Some consumers expected to switch to perceived safer tobacco alternatives
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Algeria
KEY DATA FINDINGS
Cigars, cigarillos and smoking tobacco remain niche products
Competitive landscape remains highly concentrated
Small local grocers dominate distribution
Limited prospects for cigars and cigarillos
Pipe tobacco will gain traction
Illicit trade will negatively impact volume sales of smoking tobacco.
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Algeria
KEY DATA FINDINGS
Smokeless tobacco has longstanding tradition in Algeria, while high prices continue to limit demand for e-vapour products.
United Tobacco Company retains its stronghold in smokeless tobacco while grey market hampers legitimate sales of e-vapour products
Stable distribution landscape due to restrictive legislation
Smokeless tobacco and e-vapour products set to see continued growth as consumers seek perceived healthier alternatives
Illicit vaping trade will continue to undermine government regulatory efforts
Heated tobacco products will remain marginal and dominated by illicit trade
The following categories and subcategories are included:
Tobacco
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- Fine Cut Cigarettes
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- Cigarettes (Illicit+Legal)
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- Cigars
- Cigarillos
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- Pipe Tobacco
- Fine Cut Tobacco
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- Chewing Tobacco
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- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
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- Closed System Single Use
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- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
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- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
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- Tobacco Heating Devices
- Heated Tobacco
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- Nicotine Pouches
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- Closed System Single Use (Illicit+Legal)
- Closed System Cartridges (Illicit+Legal)
- E-Liquids (Illicit+Legal)
Tobacco
Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.
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This report originates from Passport, our Tobacco research and analysis database.
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