Tobacco Market in Saudi Arabia 2015-2019 with British American Tobacco, Imperial Tobacco & Phillip Morris International Dominating

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Aug 19, 2015, 07:17 ET

DUBLIN, Aug. 19, 2015 /PRNewswire/ --

Research and Markets (http://www.researchandmarkets.com/research/764v54/tobacco_market_in) has announced the addition of the "Tobacco Market in Saudi Arabia 2015-2019" report to their offering.

The tobacco market in Saudi Arabia to grow at a CAGR of 4.50% over the period 2014-2019.

Rising smoking prevalence coupled with the growing disposable income and an increase in the number of female smokers fuels the growth of the tobacco market in Saudi Arabia. However, increased volume of illicit cigarettes acts as a major threat to the market vendors in the country.

This report covers the present scenario and the growth prospects of the tobacco market in Saudi Arabia for the period 2015-2019. To calculate the market size, the report considers revenue generated from the retail sales of various tobacco products. It also includes the market size based on volume, which is calculated based on the total consumption of tobacco products in Saudi Arabia.

Point of sale is the most important factor driving the sales of cigarettes and other tobacco products. People purchase more tobacco at shops, and, therefore, POS advertising is much more effective than any other promotional or advertising method. POS not only helps in enhancing brand awareness, but it also increases volume sales. This method is adopted across the world for increasing sales and awareness among consumers.

According to the report, MEA was one of the fastest growing tobacco markets in 2014. The increasing population, high disposable income, changing consumer demographics, and more available options have seen the demand for tobacco products in MEA surge. Rising smoking prevalence among a large young population and increased company activities in the region drive the growth of the tobacco market. In 2014, the tobacco market in MEA was led mainly by Saudi Arabia, UAE and, Bahrain. Of the total volume sales of cigarettes in Saudi Arabia, half of the sales comes from the premium and super premium cigarette segments.

Further, the report states that illicit trade creates obstacles in government budgets and legitimate tobacco companies suffer great losses.

Key Vendors