Nigerian tobacco products market to grow at 3.5% CAGR through 2028
By Oluwaseyi Lawal
In a projection by market research platform Statista, the Nigerian Tobacco Products market is projected to assume a 3.5% compound annual growth rate and to reach approximately $653 million to $670 million by 2028.
In comparison to the Nigerian market, the global market is expected to experience a compound annual growth rate of 2.56% between 2024 and 2029.
The market consists out of several parts, namely: Cigarettes, Cigars, E-Cigarettes, and Smoking Tobacco. For 2024, a projected market volume of US$965.1bn is expected. When compared globally, in China stands out as the country generating the highest revenue in the Tobacco Products market, with US$298,500m in 2024.
The Tobacco Products market includes items like filtered cigarettes, smoking tobacco (such as fine-cut and pipe tobacco), cigars and cigarillos, and e-cigarettes. However, it currently excludes products like snuff, chewing tobacco, heat-not-burn items, and untaxed tobacco products. Globally, the leading producers are China National Tobacco Corporation, Philip Morris International (PMI), British American Tobacco (BAT), Japan Tobacco International (JTI), and Imperial Tobacco.
The Nigerian Tobacco product market is controlled by a small number of powerful companies, the main one being British American Tobacco (BAT) Nigeria. In 2001, BAT began manufacturing in Nigeria and has since expanded its operations there. Although they have a smaller market share than BAT, other businesses including Philip Morris International and Japan Tobacco International (JTI) are also active in Nigeria.
The tobacco market in Nigeria has seen several significant changes in consumer behaviour:
Growing Demand for Premium Brands: As higher-income consumers look for quality and diversity, there is a growing demand for premium and imported tobacco products.
Growth of Non-Cigarette Products: Young individuals are increasingly using smokeless tobacco products, e-cigarettes, and cigars, which is in line with worldwide tobacco market trends.
Health and Awareness Campaigns: Some customers are reevaluating their consumption patterns as a result of increased public health campaigns and growing awareness of the dangers associated with smoking.
Taking into account the total population figures, the per person revenue in 2024 is estimated to be US$148.10. In terms of sales channels, online sales are expected to contribute 18.8% of the total revenue in the Tobacco Products market by 2024.
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