Tobacco in Ghana

Ghana’s tobacco industry saw major shifts in 2024, driven by tougher regulations, economic pressures, changing consumer habits and the rise of nicotine alternatives. Cigarette sales declined marginally amid rising taxes and tighter laws, while products like heated tobacco and e-vapour gained attention despite regulatory challenges. British American Tobacco Ghana Ltd (BAT) remains dominant, but local and emerging brands compete through lower pricing and targeted marketing. Online and direct-to-consumer sales have also seen growth.

Tobacco in 2024: The big picture

In Ghana, the prevalence of tobacco use remains relatively low. The majority of tobacco consumption (about 90%) in the country is attributed to manufactured cigarettes. There was a slight decline in retail volume sales of cigarettes during 2024.

2024 key trends

Elevated inflation, increased business taxes, higher import duties, and the expansion of illicit trade continue to put downward pressure on retail volume sales of tobacco in Ghana during 2024. As a result, a growing number of local consumers have shifted toward more affordable brands or reduced their consumption. Despite a modest decline in volume sales from continuous price hikes, cigarettes remained the dominant category in Ghana’s tobacco market. British American Tobacco brands continued to lead the market, reflecting strong brand loyalty.

Competitive landscape

British American Tobacco (BAT) Ghana Ltd remained the dominant tobacco company in Ghana during 2024, supported by strong brand recognition. The company offers a variety of cigarette brands that cater to diverse consumer preferences. Among the most popular BAT products in Ghana are Rothmans Kingsize; London Brown and London White, which offer distinct taste profiles that appeal to a broad spectrum of smokers; and Pall Mall, recognised for its quality and affordability. Established in 1954, BAT Ghana has played a pivotal role in shaping the country’s tobacco industry. It remains the primary importer of tobacco products, accounting for 87% of annual tobacco imports. Despite ceasing local manufacturing in 2006, BAT continues to influence the market through strategic importation and distribution channels.

Retail developments

Hospitality (on-trade) remained the leading distribution channel for cigarettes in 2024, followed by small local grocers and supermarkets. Cigarettes are widely sold in bars, as they are often consumed in tandem with alcoholic drinks. Small local grocers, commonly known as provision stores, are widespread across urban and rural areas, offering a variety of FMCG, including cigarettes. This category also includes street vendors and kiosks, which cater to on-the-go consumers.

What next for tobacco?

Having been flat in the review period, retail volume sales of cigarettes are expected to exhibit a small decline during the forecast period. Despite a longstanding tobacco industry presence, smoking prevalence in Ghana remains relatively low, and this is unlikely to change during the forecast period. To an extent, demand for cigarettes will be supported by robust economic growth, which will boost the purchasing power of local consumers. However, as more middle- and high-income consumers quit smoking, low-cost brands will likely register the best performances during the forecast period as low-income smokers are likely to continue seeking out the most affordable products available, including illicit cigarettes. Online sales of tobacco products is an emerging trend that is projected to grow in importance during the forecast period.