United Arab Emirates (UAE) Cigarette Market Overview, 2028

The United Arab Emirates (UAE) has witnessed extraordinary economic and social upheavals in recent decades. One prominent feature of this shift is the evolution of the country's tobacco market. Cigarettes have a lengthy history in the UAE, dating back to the early twentieth century, when they were introduced by British and American expats. Initially, the market was modest and served mostly the expatriate population. However, due to the UAE's rapid economic expansion and population growth, the cigarette market rose dramatically. Tobacco corporations began marketing to the local Emirati community in the 1980s and 1990s, resulting in an increase in cigarette smoking. This generated concerns about the health repercussions of smoking, causing the UAE government to take action to control the tobacco industry and reduce smoking rates. Despite the overall drop in smoking, there is a noticeable movement among those who continue to smoke toward premium and luxury cigarette brands. This tendency reflects the country's expanding wealth and need for status symbols. As public health concerns develop, interest in alternative tobacco products such as e-cigarettes and heated tobacco devices is growing. Some regard these products as a less dangerous alternative to regular cigarettes, while their long-term health implications are still being debated. The UAE is one of the world's wealthiest countries, with a high GDP per capita. This wealth has created a market for premium and luxury goods, such as high-end cigarettes. The presence of a wealthy population with disposable income boosts demand for more expensive and premium cigarette brands. The UAE has a diversified population, including a sizable expatriate community. This diversity has resulted in a wide range of consumer preferences for cigarette products. Cigarette manufacturers frequently adjust their offers to the tastes and preferences of diverse nationalities residing in the UAE.

According to the research report "United Arab Emirates Cigarette Market Overview, 2028," published by Bonafide Research, the United Arab Emirates Cigarette market is expected to grow with more than 2% CAGR from 2023 to 2028. On an average an individual consumes more than 120 cigarettes annually. The UAE government has imposed excise taxes on tobacco goods, making cigarettes more expensive in comparison to neighbouring nations with lower tariffs. This tariff generates significant government money and can function as a smoking deterrent. The government also enforces strong smoking bans in public places, which contributes to a shifting tobacco consumption environment. In recent years, there has been an increase in awareness in the UAE of the health dangers linked to smoking. This has resulted in public health campaigns and anti-smoking activities, which have helped shape the cigarette market. Changes in smoking habits are being driven by a combination of health awareness and government legislation. Cultural norms and traditions influence the tobacco market. While smoking is somewhat socially acceptable, there is an increasing emphasis on health and wellbeing, which may influence smoking rates and preferences. The UAE's reputation as a luxury shopping destination has had an impact on the cigarette business. There are numerous premium and luxury cigarette brands available, luring customers who connect smoking with luxury and sophistication. The UAE has established numerous free trade zones, such as the Dubai International Financial Centre (DIFC) and Jebel Ali Free Zone (JAFZA), which attract international businesses. These zones often have more relaxed regulations and taxation policies, making them ideal locations for tobacco companies to operate and distribute their products. The UAE's international airports, especially Dubai International Airport, are major transit hubs with extensive duty-free shopping areas. Travelers passing through these airports have access to a wide selection of tobacco products, and duty-free shops often offer competitive prices, making it convenient for tourists and expatriates to purchase cigarettes.

In terms of type market includes light, medium and others. Others segment that include menthol cigarettes, flavored cigarettes, rolling tobacco, electronic cigarettes are growing at rapid pace in United Arab Emirates Cigarette market. The UAE is a diversified country with a sizable expatriate community, bringing with them a diverse set of cultural origins and interests. Flavored cigarettes and other tobacco products, such as rolling tobacco and e-cigarettes, provide diversity and cater to a wide range of tastes. People from different regions may enjoy different flavors, and these products allow them to choose options that suit their tastes. Electronic and flavored cigarettes are frequently viewed as being less dangerous than regular cigarettes. This assumption of lower health risks has enticed smokers to switch to possibly less dangerous alternatives. Many people regard these goods as a means to mitigate the bad health effects of smoking. Some flavored cigarettes and electronic cigarette brands have been criticized for their marketing tactics that specifically target younger consumers. These products often come in appealing flavors and packaging, making them attractive to younger smokers or those experimenting with smoking.

The distribution channel of the market includes speciality store, hypermarket/ supermarket, convenience stores, online and others. Convenience stores are one of the key distribution channels for cigarettes in United Arab Emirates. Convenience stores are common in the UAE, especially in urban regions such as Dubai and Abu Dhabi. They are deliberately placed in communities, commercial districts, and next to residential complexes, making them easily accessible to customers. Cigarettes are easily accessible to smokers on their route to work, home, or throughout their daily routines. Cigarette sales are frequently based on spontaneous purchases. Smokers are more likely to buy cigarettes when they see them easily available in a convenience shop, even if they had not planned to buy them earlier. Cigarettes are more likely to be purchased spontaneously in these stores due to their visibility. The UAE is a popular tourist destination, attracting millions of visitors from all over the world. Convenience stores are frequently found in areas heavily frequented by tourists, such as shopping districts and tourist attractions.

Considered in this report:
• Geography: United Arab Emirates
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028



Aspects covered in this report:
• United Arab Emirates Cigarette market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type:
• Light
• Medium
• Others

By Distribution Channel:
• Speciality Store
• Hypermarket/supermarket
• Convenience Stores
• Online
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Cigarette industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.