GCC: Tobacco Market 2024

Tobacco Market Size in GCC

After three years of growth, the GCC tobacco market decreased by -18.2% to $X in 2021. Over the period under review, consumption showed a pronounced downturn. Over the period under review, the market attained the peak level at $X in 2014; however, from 2015 to 2021, consumption remained at a lower figure.

Tobacco Production in GCC

In value terms, tobacco production shrank dramatically to $X in 2021 estimated in export price. In general, production, however, enjoyed mild growth. The pace of growth appeared the most rapid in 2020 with an increase of 56% against the previous year. Over the period under review, production attained the maximum level at $X in 2014; however, from 2015 to 2021, production remained at a lower figure.

Tobacco Exports

Exports in GCC

For the fourth consecutive year, GCC recorded growth in overseas shipments of tobacco (smoking tobacco, chewing tobacco, snuff), which increased by 17% to X tons in 2021. Over the period under review, exports enjoyed a significant expansion. The most prominent rate of growth was recorded in 2015 with an increase of 134% against the previous year. Over the period under review, the exports hit record highs in 2021 and are likely to see gradual growth in the immediate term.

In value terms, tobacco exports rose notably to $X in 2021. Overall, exports saw strong growth. The pace of growth appeared the most rapid in 2016 when exports increased by 38% against the previous year. The level of export peaked in 2021 and is likely to see gradual growth in years to come.

Exports by Country

The United Arab Emirates dominates exports structure, finishing at X tons, which was near 93% of total exports in 2021. It was distantly followed by Oman (X tons), comprising a 5.1% share of total exports.

The United Arab Emirates was also the fastest-growing in terms of the tobacco (smoking tobacco, chewing tobacco, snuff) exports, with a CAGR of +22.4% from 2012 to 2021. At the same time, Oman (+17.1%) displayed positive paces of growth. While the share of the United Arab Emirates (+2.6 p.p.) increased significantly in terms of the total exports from 2012-2021, the share of Oman (-2.3 p.p.) displayed negative dynamics.

In value terms, the United Arab Emirates ($X) remains the largest tobacco supplier in GCC, comprising 94% of total exports. The second position in the ranking was taken by Oman ($X), with a 3.8% share of total exports.

From 2012 to 2021, the average annual rate of growth in terms of value in the United Arab Emirates totaled +17.6%.

Export Prices by Country

The export price in GCC stood at $X per ton in 2021, waning by -5.7% against the previous year. Over the period under review, the export price saw a noticeable decrease. The pace of growth was the most pronounced in 2017 an increase of 45% against the previous year. Over the period under review, the export prices hit record highs at $X per ton in 2012; however, from 2013 to 2021, the export prices remained at a lower figure.

Average prices varied somewhat amongst the major exporting countries. In 2021, amid the top suppliers, the country with the highest price was the United Arab Emirates ($X per ton), while Oman totaled $X per ton.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the United Arab Emirates (-3.9%).

Tobacco Imports

Imports in GCC

In 2021, approx. X tons of tobacco (smoking tobacco, chewing tobacco, snuff) were imported in GCC; with an increase of 12% against 2020. Overall, imports recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2015 with an increase of 34%. Over the period under review, imports reached the maximum at X tons in 2016; however, from 2017 to 2021, imports failed to regain momentum.

In value terms, tobacco imports expanded sharply to $X in 2021. Over the period under review, imports enjoyed strong growth. The pace of growth appeared the most rapid in 2015 when imports increased by 46%. Over the period under review, imports attained the maximum at $X in 2016; however, from 2017 to 2021, imports failed to regain momentum.

Imports by Country

In 2021, the United Arab Emirates (X tons) was the key importer of tobacco (smoking tobacco, chewing tobacco, snuff), achieving 61% of total imports. Saudi Arabia (X tons) ranks second in terms of the total imports with a 25% share, followed by Kuwait (7.2%) and Oman (5%).

Imports into the United Arab Emirates increased at an average annual rate of +5.7% from 2012 to 2021. At the same time, Kuwait (+21.6%) and Oman (+15.3%) displayed positive paces of growth. Moreover, Kuwait emerged as the fastest-growing importer imported in GCC, with a CAGR of +21.6% from 2012-2021. By contrast, Saudi Arabia (-8.4%) illustrated a downward trend over the same period. From 2012 to 2021, the share of the United Arab Emirates, Kuwait and Oman increased by +23, +5.9 and +3.6 percentage points, respectively.

In value terms, the United Arab Emirates ($X) constitutes the largest market for imported tobacco (smoking tobacco, chewing tobacco, snuff) in GCC, comprising 69% of total imports. The second position in the ranking was taken by Saudi Arabia ($X), with a 21% share of total imports. It was followed by Kuwait, with a 4.5% share.

From 2012 to 2021, the average annual rate of growth in terms of value in the United Arab Emirates totaled +12.2%. In the other countries, the average annual rates were as follows: Saudi Arabia (+2.4% per year) and Kuwait (+13.2% per year).

Import Prices by Country

In 2021, the import price in GCC amounted to $X per ton, growing by 1.8% against the previous year. Import price indicated a buoyant increase from 2012 to 2021: its price increased at an average annual rate of +8.9% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, tobacco import price increased by +11.0% against 2019 indices. The pace of growth appeared the most rapid in 2016 an increase of 38%. The level of import peaked at $X per ton in 2018; afterwards, it flattened through to 2021.

There were significant differences in the average prices amongst the major importing countries. In 2021, amid the top importers, the country with the highest price was the United Arab Emirates ($X per ton), while Kuwait ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Saudi Arabia (+11.7%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform