Retail volume sales of cigarettes in Ethiopia continued to expand at a robust pace in 2024, but the liberalisation of the foreign exchange rate in July 2024 effectively doubled raw material import costs, contributing to a sharp increase in cigarette prices. Pipe tobacco remains prevalent in rural areas, while illegally smuggled tobacco for use in shisha and hookah pipes is widely consumed by young adults, with e-vapour products also growing in popularity among this group.
Tobacco in 2024: The big picture
The tobacco industry in Ethiopia is heavily dominated by cigarettes.
2024 key trends
There has been a shift towards illicit products in the Ethiopian market, which has negatively impacted the sales of locally produced cigarettes by Japan Tobacco International (JTI). This impact has been particularly pronounced in the east of the country, where licit offerings have largely been overtaken by illicit imports. This is mainly due to the significant price difference between illicit and locally produced products, as well as low customer awareness regarding the difference between them. Illicit cigarettes are widely sold by small local grocers.
Competitive landscape
There is only one company that is engaged in tobacco production, National Tobacco Enterprise (NTE). NTE is now majority owned by Japan Tobacco International (JTI). It produces four brands of Cigarettes, which are Nyala, Nyala Premium, Winston, and LD. Nyala is the most popular cigarette sold by NTE, followed by Nyala Premium and Winston.
Retail developments
The distribution of cigarettes continues to be dominated by small local grocers, but both supermarkets and hospitality (on-trade) are growing in importance, in spite of the fact that most supermarkets do not stock cigarettes.
What next for tobacco?
Retail volume sales of cigarettes will expand at a slightly slower pace in the forecast period than in the review period.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Ethiopia 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 Ethiopia, 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 Ethiopia 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 Ethiopia?
- Which are the leading brands in Tobacco in Ethiopia?
- How are products distributed in Tobacco in Ethiopia?
- Which category is the most heavily taxed in Ethiopia?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Ethiopia?
- 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 Ethiopia
Tobacco in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
What next for tobacco?
Legislation
TAXATION AND DUTY LEVIES
DISCLAIMER
Key Data Findings
2024 Developments
Illicit trade continues to gain ground after exchange-rate liberalisation and tax hike
Dominance of Japan Tobacco International eroded by illicit imports
Supermarkets and hospitality grow in importance as distribution channels
Prospects and Opportunities
Elevated inflation and increased taxation will slow retail volume sales growth
Illicit sales will continue to gain ground
Tight regulation will continue to limit innovation
Category Data
Key Data Findings
2024 Developments
Pipe tobacco remains popular in rural areas
High pricing limits cigar consumption
Ethiopia gets its first cigar lounge
Prospects and Opportunities
Increased awareness will boost cigar consumption
Category Data
2024 Developments
E-vapour products remain prohibited, but illicit sales are growing
Exchange rate depreciation drives significant hike in pricing of e-vapour products
Illicit channels dominate distribution of e-vapour products
Prospects and Opportunities
Ban of e-vapour products likely to remain in place
Category Data
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.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Tobacco research and analysis database.
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