Tobacco in Oman

Tobacco in 2024: The big picture

Tobacco consumption in Oman remained relatively steady in 2024, with performance shaped by a complex interplay of cultural preferences, economic realities, and ongoing regulatory constraints. While traditional formats such as cigarettes and shisha maintained their stronghold, shifting attitudes and the absence of legal alternatives like vapes continued to influence consumer behaviour. As in previous years, the cigarettes category remained the largest within tobacco overall, although subtle shifts in brand loyalty and increased interest in lower-cost or alternative formats were observed. Simultaneously, shisha retained its cultural significance and emerged as a more dynamic category in terms of volume demand, with many consumers gravitating toward it as a more affordable option in the face of rising cigarette prices.

2024 key trends

Cigarettes continued to dominate tobacco sales in 2024, reflecting deep-rooted consumer habits and the absence of widespread legal alternatives. However, a slight dip in sales volumes was recorded, influenced in part by boycott movements targeting specific Western brands. These boycotts, more pronounced in Oman than elsewhere in the Gulf region, led some consumers to switch to brands perceived as more neutral or to explore other tobacco formats. Although most smokers remained loyal to their preferred brands, there was a modest increase in interest in products from companies not directly associated with boycott targets. Despite this, the shift did not significantly disrupt category leadership. Furthermore, the lack of legal access to e-vapour products limited the impact of consumer experimentation with non-combustible alternatives.

Competitive landscape

Philip Morris remained the leading player within Oman’s tobacco market in 2024, strengthening its position through the performance of its cigarettes portfolio. The company’s brands, including Marlboro, L&M, Parliament, and Chesterfield, continued to cater to a broad spectrum of consumers – from premium to economy tiers. Marlboro retained its position as the most widely smoked brand in Oman, driven by its distinctive flavour and premium appeal. Among its variants, Marlboro Gold remained particularly popular due to its smoother taste profile, while other offerings such as Marlboro Double Ice, Silver Blue, Flavour Mix, and Gold Edge provided additional variety. Brand loyalty remained a defining feature of the local cigarettes market, particularly among middle- and high-income consumers, with many choosing to remain within the Marlboro family across pricing tiers.

Retail developments

Small local grocers remained the most prominent distribution channel for tobacco products in 2024, due to their widespread accessibility and convenience. These outlets are especially important in residential areas and urban neighbourhoods, making them a preferred destination for daily or routine tobacco purchases. Their role is particularly vital for cigarettes and smoking tobacco, both of which are typically bought in smaller quantities and at regular intervals. Consumers – especially those in lower-income groups or without access to large retail centres – rely heavily on these grocers for consistent access to their preferred brands. The familiarity and proximity of such stores further cement their dominance in the retail landscape.

What next for tobacco?

Over the forecast period, the tobacco market in Oman is expected to return to moderate growth, supported by stabilising economic conditions and a projected increase in the country’s population. Inflationary pressures are expected to ease, improving household purchasing power and enabling more consistent consumer spending across all fast-moving consumer goods categories, including tobacco. Additionally, the anticipated rise in expatriate numbers and a recovering tourism sector are likely to support volume recovery, particularly within the core cigarettes category. Nonetheless, this growth will unfold within a context of continued regulatory pressures and heightened public awareness of smoking-related health risks, both of which are expected to temper demand and contribute to a gradual shift in consumption habits over time.