Tobacco in Qatar

Tobacco in 2024: The big picture

Tobacco in Qatar remained stable in 2024, with steady demand across cigarettes, cigars, and smoking tobacco products. The landscape was shaped by evolving consumer preferences, the enduring popularity of traditional formats such as Medwakh, and the continued expansion of distribution channels. Despite a tightly regulated environment, there remained opportunities for modest growth through broader retail availability, heightened product awareness, and offerings tailored to a diverse consumer base. While growth was limited, the luxury appeal of certain products and the cultural role of tobacco in social settings continued to support the market’s resilience.

2024 key trends

Contrary to previous patterns, smoking rates in Qatar saw a slight increase in 2024, driven by economic pressures despite ongoing public health campaigns and taxation efforts. The General Tax Authority’s introduction of the tax stamp system – implemented in phases beginning in 2022 – aligned with Qatar’s Third National Development Strategy (2024-2030), which aims to enhance quality of life by reducing smoking prevalence. These regulatory efforts also support the National Health Strategy’s broader goal of protecting the community from tobacco-related harms by tightening import controls and applying excise taxes. However, rising inflation in 2024 reshaped consumer purchasing habits, prompting some individuals to reduce consumption or switch to more affordable options. As tobacco taxes drove up retail prices, a growing number of consumers turned to illicit sources. At the same time, Qatar’s strict rules around tobacco sales and advertising continued to constrain formal market expansion.

Competitive landscape

Philip Morris International (PMI) was the leading company within tobacco overall in 2024, retaining a strong volume share through its well-established cigarette brands Marlboro, Chesterfield, L&M and Parliament. While Marlboro and Parliament experienced a slight decline in volume share due to their premium pricing, Chesterfield and L&M gained traction among consumers seeking more affordable alternatives. PMI’s continued dominance reflects the enduring strength of its brand portfolio, with its mid-priced offerings helping to stabilise performance in the face of rising prices and heightened consumer price sensitivity.

Retail developments

Supermarkets and hypermarkets were the leading distribution channel within tobacco overall in 2024, reflecting their broad accessibility and appeal to a wide consumer base. These outlets retained a strong position in the distribution landscape, in part due to their ability to offer competitive pricing and consistent product availability. Amid rising inflation and increased price sensitivity, many consumers gravitated towards these channels for their convenience and affordability. Additionally, tighter regulations on the proximity of tobacco shops to schools – requiring a minimum distance of one kilometre – helped reinforce the dominance of hypermarkets and supermarkets, which are typically located in retail zones unaffected by such restrictions.

What next for tobacco?

Tobacco sales in Qatar are set to rise at a modest pace over the forecast period, with growth supported primarily by the continued popularity of traditional products such as cigarettes and smoking tobacco. However, increasing health consciousness, persistent regulatory constraints, and elevated taxation are expected to temper overall volume growth. Retail value will likely grow more notably, driven by ongoing price hikes rather than rising consumption. The absence of legal alternatives such as e-vapour products or heated tobacco will sustain demand for conventional formats, particularly among price-conscious and loyal user bases.