Tobacco Products - Nigeria

Nigeria

The revenue generated Nigeria's Tobacco Products market is estimated to reach US$2.0bn in 2024.
It is anticipated that the market will experience an annual growth rate of 11.16% between 2024 and 2029 (CAGR 2024-2029).
The largest segment within this market is Cigarettes, which is projected to have a market volume of US$1.6bn in 2024.
When compared globally, in China leads in revenue generation with US$298,500m in 2024.
In terms of per capita figures, each person in Nigeria is expected to contribute US$12.48 in revenue in 2024.
Online sales are projected to account for 0.2% of the total revenue in the Tobacco Products market by 2024.
Despite growing health concerns, tobacco products continue to be popular in Nigeria, with a high demand for locally produced cigarettes.

Key regions: Worldwide, India, United States, China, Germany

Market

Region

Region comparison

Currency

Analyst Opinion

Tobacco products have been the focus of tightening regulations for decades. Higher taxation and increasing health awareness among consumers have reduced smoking rates and volume consumption significantly in the past. Over the forecast period, a certain stabilization of these losses is expected to happen. Most growth in the sector, however, is attributable to novel, risk-reduced products that can broadly be classified as vaping products or e-cigarettes (e.g., Juul).

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on consumer spending on Tobacco products, namely, Cigarettes, Cigars, Smoking Tobacco, and E-Cigarettes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, trade data, national statistical office data, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global Survey), as well as performance factors. In addition, we use relevant key market indicators and data from country-specific associations, such as smoking rates, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques, such as exponential trend smoothing and regression analysis. The selection of forecasting techniques is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Survey data is reweighted for representativeness.