GCC Tobacco Market

Market Overview: 

The GCC tobacco market size reached USD 6.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 10.3 Billion by 2033, exhibiting a growth rate (CAGR) of 4.1% during 2025-2033. The widespread prevalence of shisha or hookah smoking across social gatherings and recreational spots, continuous advances in product innovation, and the introduction of novel tobacco and nicotine products across the region represents some of the key factors driving the market.

Tobacco refers to an agricultural product that is derived from the leaves of plants in the Nicotiana genus, a member of the Solanaceae family. Traditionally, the leaves are dried and fermented to be used for smoking, chewing, or as snuff. It contains nicotine, a powerful stimulant, and has been used as a recreational substance worldwide for centuries. In addition to this, it serves as a significant cash crop and a lucrative trade commodity. Its primary forms include cigarettes, cigars, pipe tobacco, and smokeless products like snuff and chewing tobacco. Moreover, it is also employed in several industries to manufacture products, such as nicotine replacement therapy (NRT) aids and e-cigarettes. Over the years, the transformation of tobacco usage from traditional smoking methods to alternative smoking accessories, including hookah and vaping devices, has expanded the scope of the tobacco industry. Now, it is a highly regulated and taxed sector, offering significant economic contributions worldwide, and the Gulf Cooperation Council (GCC) region is no exception.

GCC Tobacco Market Trends:

The GCC tobacco market is experiencing significant growth due to the cultural acceptance of smoking. This can be supported by the widespread prevalence of shisha or hookah smoking across social gatherings and recreational spots in the region. This social factor, coupled with a high disposable income, contributes significantly to the tobacco market's growth in the region. Along with this, the growing population of young adults and expatriates in the GCC region has resulted in increased demand for various tobacco products, further fueling the market expansion. In addition, advances in product innovation and the introduction of novel tobacco and nicotine products, including e-cigarettes and heat-not-burn products, are catching consumers' interest, adding to the market momentum. Apart from this, the consumer shifts toward safer alternatives to nicotine is fostering the growth of the e-cigarettes and smokeless tobacco segments. Furthermore, sustainability trends in packaging and the advent of organic tobacco products indicate the industry's stride toward an eco-conscious approach, aligning with the global shift toward sustainable practices. Besides, the availability and accessibility of tobacco products through various retail channels, including convenience stores, supermarkets, and dedicated tobacco shops, can impact consumer purchasing patterns. However, public health campaigns and anti-smoking initiatives aimed at raising awareness of the health risks associated with tobacco use may lead to reduced consumption, thereby adversely affecting the overall market across GCC. Some of the other factors driving the market include changing consumer preferences and the launch of new products.

GCC Tobacco Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the GCC tobacco market report, along with forecasts at the regional and country levels for 2025-2033. Our report has categorized the market based on type.

Type Insights:

• Cigarettes
• Roll Your Own
• Cigars
• Cigarillos
• Smokeless Tobacco
• Others
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes cigarettes, roll your own, cigars, cigarillos, smokeless tobacco, and others.

Country Insights:

• Saudi Arabia
• UAE
• Qatar
• Bahrain
• Kuwait
• Oman
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, and Oman.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the GCC tobacco market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

GCC Tobacco Market Report Coverage:

Key Questions Answered in This Report:

• How has the GCC tobacco market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the GCC tobacco market?
• What is the breakup of the GCC tobacco market on the basis of type?
• What are the various stages in the value chain of the GCC tobacco market?
• What are the key driving factors and challenges in the GCC tobacco market?
• What is the structure of the GCC tobacco market and who are the key players?
• What is the degree of competition in the GCC tobacco market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the GCC tobacco market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the GCC tobacco market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the GCC tobacco industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.