Tobacco in 2023: The big picture
Tobacco in the United Arab Emirates is a strong and a well-established industry. Although globally, tobacco is facing challenges, it still demonstrates healthy growth in the United Arab Emirates.
2023 key trends
Due to disruptions to trade routes in the region, the United Arab Emirates has been experiencing tobacco import issues, starting from the last quarter of 2023. Although the shortage of tobacco has not been significant compared to other countries in the Middle East, it had an impact on overall volumes, mainly within fine cut tobacco, which offers lower revenue for players compared to cigarettes and thus not considered a priority.
Competitive landscape
Most tobacco products sold in the United Arab Emirates are owned by international players, which creates space for healthy competition, especially within the premium segment. However, the considerable amount of illicit trade creates another level of competition, as in many cases, the same tobacco products can be purchased for half the price via direct selling or imported from other countries online, while avoiding required taxation and proper labelling.
Retailing developments
In the United Arab Emirates, forecourt retailers is a prominent distribution channel, especially for cigarettes. Unlike many other Middle Eastern markets, the United Arab Emirates has a developed concept of petrol stations with limited-service restaurants around and near grocery stores, which are equipped with coffee areas or even a barista.
What next for tobacco?
Tobacco in the United Arab Emirates is expected to continue demonstrating healthy growth over the forecast period, despite a global fall in demand for cigarettes in particular. The United Arab Emirates has a strong smoking heritage, including traditional forms of pipe tobacco, or shisha.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in United Arab Emirates 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 United Arab Emirates, 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 United Arab Emirates 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 United Arab Emirates?
- Which are the leading brands in Tobacco in United Arab Emirates?
- How are products distributed in Tobacco in United Arab Emirates?
- Which category is the most heavily taxed in United Arab Emirates?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in United Arab Emirates?
- 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 the United Arab Emirates
Tobacco in 2023: The big picture
2023 key trends
Competitive landscape
Retailing 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
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Reduced harm
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in the United Arab Emirates
KEY DATA FINDINGS
Despite growing interest in alternatives, cigarettes retains popularity
Despite tobacco shortage, supply of cigarettes is prioritised for local market
Philip Morris retains leadership of cigarettes in the United Arab Emirates
Cigarettes set to maintain steady growth over the forecast period
Local cigarette consumption to continue to favour mid and premium brands
Forecourt retailers likely to remain leading distribution channel for cigarettes
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in the United Arab Emirates
KEY DATA FINDINGS
Pipe tobacco remains a value-generating category in the United Arab Emirates
Cigars records strong growth due to tourism and luxury lifestyles
Flavoured cigars gain popularity in local market
Fine cut tobacco to demonstrate moderate growth amid import issues
A boost to cigar sales expected in 2027 following the opening of a casino
Further fragmentation of competitive landscape for cigars likely
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in the United Arab Emirates
KEY DATA FINDINGS
Heated tobacco products demonstrates most impressive growth in 2023
E-vapour products remains successful category in the United Arab Emirates
Illicit trade offers competition for e-vapour products and heated tobacco
Competitive landscape of e-vapour products set to become increasingly fragmented
Closed vaping systems to grow faster than open format
Single use closed system to remain favoured type of e-vapour products
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.
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This report originates from Passport, our Tobacco research and analysis database.
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