Countries in the Gulf Region are bucking the global trend of declining smoking rates. Photo credit: Octavio J. Garcia, Pexels.
Despite the rise of vaping, smoking remains firmly entrenched in the Gulf Region, reports Semafor, reflecting a unique and ongoing demand for nicotine in the region.
Cigarette consumption is stable in Saudi Arabia and increasing in the UAE, according to Euromonitor International. Sales of smokeless tobacco and vapor products are projected to more than triple by 2028, with Saudi Arabia's market set to rival that of Egypt, which is far larger.
According to Euromonitor analyst Alexandra Molokova, demand is fueled by a "strong smoking culture" and "relatively lower health awareness," presenting significant "opportunities for the industry" in the Middle East and Africa.
Despite a global decline in smoking, cigarette and alcohol sales in the UAE are thriving, driven by tourism. In 2024, cigarette volume growth in the UAE grew by 4.9% with CAGR in 2023-2028 cigarette volume growing by 5%. Euromonitor predicts this growth will accelerate with the opening of the Emirates' first casino in 2027. Value growth of vapes and HTP was at 15.2% this year.
In Egypt, cigarette volume growth grew by 3.3% with CAGR cigarette volume growing by 3.9%. The recent lifting of a vape ban led the category to grow from a small base, with value growth of vapes and HTP in Egypt at 36%.
According to Molokova, local brands are growing across categories, including cigarettes, pipe tobacco, and e-vapor products.