Market Size - Cigarettes: Africa
Even after searching through market research reports, revenues of leading companies and news articles, we were unable to determine the market size of the African cigarettes industry. Instead, we calculated the market size for cigarettes in the Middle East and Africa. The 2018 market size for cigarettes and e-cigarettes (vaping devices) was $79.92 billion and $267.9 million respectively. METHODOLOGY
We commenced our research by looking for news articles published by industry-related platforms such as Market Watch and Business Insider, among others. While these websites had information on trends and statistics related to the cigarettes market in Africa, there was no mention of the sales generated in the industry.
We then examined market research reports published by platforms like PRNewswire and Mordor Intelligence, to name a few. Since there was no data provided on Africa's cigarette market, we searched for the global market size of cigarettes so we could find out what share of the market belongs to Africa. However, we came across some hurdles. First, these market research reports were obstructed by paywalls, which made it impossible to determine Africa's market share of the cigarettes industry. While they offered sypnoses of what would be included in the paid reports, none of the information provided was substantial. In addition, we found that most market reports group the Middle East and Africa together for market size data. This was the case for the market size reports we located. None of them provided a separate share for Africa alone. We also examined market reports for the market size of tobacco in Africa. Earlier, we found that cigarettes account for 93% of the tobacco market. Our plan was to apply this share to the market size of tobacco in Africa. Again, we came across the aforementioned issues that made it difficult to do this.
As an attempt to provide the market size of cigarettes in Africa, we tried some triangulation strategies. At first, we tried reviewing the annual reports of key players in the cigarettes industry in order to add up the revenues of these companies. However, we soon found that these are large companies headquartered in North America or Asia. Although we reviewed their annual reports, we were only able to locate aggregate figures. Some companies had annual reports that did not segment their revenues by continent. For those that provided a breakdown of revenues by segment, the Middle East and Africa was still categorized together. Therefore, this was also a futile triangulation attempt. As a result of the obstacles we encountered, we decided to provide market size information on the Middle East and Africa.
CIGARETTES MARKET IN AFRICA
In 2018, cigarettes had a global market size of $888 billion. The market was forecast to reach $1.124 billion by 2023 at a compound annual growth rate of 4%. The Middle East and Africa have a 9% share of this market which amounts to $79.92 billion (9/100*$888bn). The increase in cigarette sales in Africa can be credited to its growing population, the increasing income of middle class citizens, and its laissez-faire and weak regulatory environment - compared to developed continents like Europe which have strict laws around tobacco production. Egypt is dominating the cigarette market in Africa as evidenced by its 2017 retail volume of 93.1 billion sticks. E-CIGARETTES MARKET IN AFRICA
The market size of e-cigarettes in the Middle East and Africa was $267.9 million in 2018 and was predicted to have a compound annual growth rate of 9.74% from 2018 to 2024. According to several market reports, e-cigarettes are also known as vaping devices. The key players in the African & Middle-Eastern e-cigarettes market are British American Tobacco, Joyetech Changzhou Electronics Co, and VIP Electronic Cigarettes.
Egypt is the key market in Africa due to the country's ancient vaping tradition. The country had an e-cigarette market size of $125.8 million in 2018. A study conducted in Egypt by The Egyptian Journal of Hospital Medicine revealed that 57.5% of the participants knew about e-cigarettes. E-cigarette vendors in Egypt are constantly releasing innovative e-cigarette flavors to keep up with its demand. ADDITIONAL INFORMATION
- More tobacco production facilities are being built in Africa due to the increase in demand for cigarettes.
- A study examined 30 key markets in Africa and came across "62 cigarette production facilities" in these countries.
- South Africa, Egypt, Nigeria, Algeria, and Kenya are the primary "tobacco producing hubs" in Africa.
- A survey conducted in 2015 pointed out that 20% of South Africans smoke cigarettes.
- There are currently 77 million cigarette smokers in Africa.
- Over the past 10 years, South Africa's vaping industry has seen a 10% growth annually.