Cigarette sales in Algeria expected to fall as taxes rise: Ken research

Ken research announced recent publication on Cigarettes in Algeria . The report provides a comprehensive analysis on the cigarette market of Algeria. It gives an highly analytical, extensive and detailed current and future market trends in the Finnish market. It further , covers market size and structure along with per capita and overall consumption. Additionally, it delineates about the brand data, retail pricing, prospects and forecasts for sales and consumption to 2025.

Algeria is Africa’s largest country and a major part of the OPEC. It has a GDP of over USD 550 billion. The economy is highly dependent on its energy resources. Energy sales accounted for over 90% of the Algerian exports and about 60% of its state budget. The industry sector is the largest sector of the economy , followed by service sector then primary sector . Algeria’ s mean tariff rate is 12% and its trade and investment policies are less open that most of the nations.

Algeria is a moderately populated country , with is population growth being only 1.2% per year. The Mediterranean cost is the most populated area with 91% of population settled within just 12% of landmass. There is rapid urbanization as 45% of people live in urban areas and these numbers are growing An average woman gives birth to 1.8 children and there is 4 births to each death case. The nation has relatively younger population with about 95% of people below the age of 65 years.

The Algerian economy facing certain difficulties. In 2015, the oil prices fell and the local currency dinar deprecated, their export revenue got halved. Due to this, the gap of the fiscal deficit further intensified . According to their finance ministry, their fiscal deficit reached 16% of the GDP in 2015. This has led to cut down in subsidies given by the government, increase in value tax by 10% and stalling of some major infrastructural projects. Further, the government announced to reduce its imports by 15% to preserve the foreign currency.

The nation faces certain issues on its domestic front as well . In 2015, the government suppressed its political opponents leading to widespread resentment and fall in state’s credibility. The corruption level is high and judicial system inefficient. Algerian labour market is rigid leading to high unemployment .

Algeria has a culture of cigarette consumption. The industry is dominated by SNTA which is state monopoly and biggest producer of cigarettes. In 2005, this industry was opened for imports which led to joint venture between SNTA and Arab investors. On September 28, 2006, Algeria became one of the first countries to sign the world Health organization’s framework on tobacco control.

The laws under the frame work include

Smoking is prohibited in educational, health, athletic, and cultural facilities. There are several restrictions on smoking in workplaces and public transport
The laws prevents advertising of tobacco products
The cigarette package must display health warnings

Topics Covered in the Report