Tobacco in 2024: The big picture
Tobacco in Saudi Arabia witnessed decline in retail volume and value terms over 2024, reflecting the shift away from traditional products. Cigarette volume sales declined further as health concerns, stricter regulations, and rising prices influenced consumers to reduce or stop consuming them. Public health efforts and government legislation reinforced the negative image of smoking, especially among younger adults, whilst older consumers are more inclined to cease smoking altogether. Overall, there is a shift towards moderation, with growing demand for flexible, lower-risk formats.
2024 key trends
Tobacco volume and value sales weakened over 2024 reflecting the declining smoking prevalence, stricter regulations, and increasing consumer price sensitivity in Saudi Arabia. Ongoing health concerns and public campaigns continued to reduce demand, while inflation and higher costs led some consumers to cut back or switch to cheaper alternatives. The Saudi government continues to make efforts to reduce the number of smokers in the country, through educational campaigns, various smoking bans for public spaces, and penalties issued for those who violate the bans.
Competitive landscape
British American Tobacco leads tobacco in Saudi Arabia followed closely by Philip Morris International. The former maintains its leadership through a strong presence in cigarettes. However, it faced notable pressure in 2024, with consumer shifts affecting both its cigarette and e-vapour portfolios. Philip Morris International continued to gain ground in 2024, supported by its premium cigarette brands Marlboro and Parliament. It also leads in heated tobacco with IQOS and TEREA. Early investments in innovation and branding have positioned it well as the market diversifies. Both companies are navigating a changing landscape, where performance depends not just on cigarette volumes, but on their ability to meet new consumer expectations through alternative formats.
Retail developments
Traditional retail channels remain the backbone of tobacco sales in Saudi Arabia. For cigarettes, small local grocers and convenience stores are key, but for cigars, cigarillos, and smoking tobacco, specialist tobacco specialists are the clear leaders. These specialist outlets dominate because they offer expertise, a wider product selection, and a discreet shopping experience valued by adult users. Their established reputation and trust make them the first choice for those seeking premium or niche tobacco products. For cigarettes, small local grocers and convenience stores remain popular due to their presence in daily routines and easy accessibility.
What next for tobacco?
Tobacco in Saudi Arabia is moving in a new direction, shaped by changing habits and a growing focus on healthier, more flexible nicotine choices. Tobacco sales are expected to remain stable during the forecast period. While traditional formats like cigarettes and pipe tobacco (shisha) are facing a slowdown in sales, newer categories such as e-vapour, heated tobacco, and nicotine pouches are expected to grow. Urban areas will likely see faster shifts in the transition towards reduced-harm alternatives, while traditional preferences in other regions may hold steady for longer.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Saudi Arabia 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 Saudi Arabia, 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 Saudi Arabia 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 Saudi Arabia?
- Which are the leading brands in Tobacco in Saudi Arabia?
- How are products distributed in Tobacco in Saudi Arabia?
- Which category is the most heavily taxed in Saudi Arabia?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Saudi Arabia?
- 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 Saudi Arabia
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
Point-of-sale display bans
Smoking in public places
Flavoured tobacco product ban
Reduced harm
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Saudi Arabia
KEY DATA FINDINGS
Cigarettes category remains under pressure in Saudi Arabia
British American Tobacco Plc maintains lead as competiton heats up
Small local grocers lead in distribution as convenience stores gain traction
Smoking stigma is expected to gain traction in Saudi Arabia
Existing brands will prioritise customer retention strategies
Limited room for innovation due to regulatory constraints
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Saudi Arabia
KEY DATA FINDINGS
Cigars and cigarillos face volume decline in 2024
Al Fakher Tobacco Trading leads the competitive landscape
Tobacco specialists dominate overall distribution
Limited growth prospects within the broader category
Leading brands are expected to defend their share
Innovation will likely focus on flavour development
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Saudi Arabia
KEY DATA FINDINGS
Changing consumer behaviour favours reduced-harm alternatives
Major players exert control over the competitive landscape
E-commerce continues to gain share of distribution
Further expansion of e-vapour and heated tobacco products
Strong growth potential for the new nicotine pouches category
Consumers to shift towards reusable and higher performance devices
The following categories and subcategories are included:
Tobacco
-
-
- Fine Cut Cigarettes
-
- Cigarettes (Illicit+Legal)
-
-
- Cigars
- Cigarillos
-
- Pipe Tobacco
- Fine Cut Tobacco
-
-
-
- Chewing Tobacco
-
-
- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
-
-
-
- Closed System Single Use
-
- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
-
- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
-
-
- Tobacco Heating Devices
- Heated Tobacco
-
- Nicotine Pouches
-
-
- 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.
NEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!