Market Trends of Egypt Tobacco Industry
This section covers the major market trends shaping the Egypt Tobacco Market according to our research experts:
Consumption of Tobacco is Rising as Shisha Segment is Growing at a Significant Pace
- Shisha is a traditional flavored syrupy tobacco product used in hookahs or water pipes and is also known as Shisha masses. According to a study on shisha smokers conducted by Central Agency For Public Mobilization and Statistics, 81% were spending 10% of their income on daily shisha consumption. Due to this, the consumption of tobacco is rising in the country.
- Moreover, the prevalence rate of their smoking shisha is relatively higher than other tobacco products, with a regular rate of 8.7%. Moreover, younger adults who smoke shisha tend to smoke more often with friends, a popular social activity among consumers in the market. Shisha use is rising among college students as they perceive it as safer than cigarette smoking. In addition, waterpipe smoking is characterized by a lower frequency of exposure (one to four sessions per day).
- Furthermore, most female shisha (waterpipe smokers) consumers perceived the product as fashionable and believed waterpipes are less harmful than cigarettes. Smoke apple, watermelon, strawberry, orange coffee, and other flavored shisha are growing in the market.
- Additionally, exchanging gifts with an Egyptian flavor is always a tradition among Egyptians. A trend has begun in which gifts are created representing the most famous couples in Egyptian TV series and plays and gifts inspired by Egyptian folklore. Instead of traditional symbols of love, Valentine's shisha with red hearts and red decorations is sold on Facebook gift pages and has begun in the country.
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Strong Penetration of Offline Retail Network
- The penetration of organized retail enables consumers to seek information about various brands and compare prices and quality, resulting in a better purchasing experience. This segment includes retail outlets like specialty stores, vape/tobacco stores, hypermarkets/supermarkets, convenience stores, and gas stations.
- As these outlets are in heavily populated areas, with a greater number of customer groups, the manufacturers are using this opportunity to promote their product by giving multipack discounts (e.g., buy-two-get-one-free or buy-two-for-one deals) and wholesale price discounts, driving the sales of the product through this channel.
- Furthermore, point-of-sales marketing using color, design, and others are made to enhance the impulse purchases of tobacco products. These stores provide more comprehensive visibility, as cigarette and other tobacco advertising are banned.
- In addition, 6 in 10 adults noticed tobacco advertisements or promotions when visiting points of sale, driving the growth. For instance, Tabacco in SkyMall offers a range of products like shisha, cigars, and cigarettes. As a result, tobacco products gain the majority share of sales in the offline retail channel.
