The tobacco industry in Bahrain is a fascinating world, filled with intricate dynamics and key players. This industry, while often overlooked, plays a significant role in Bahrain’s economy. From the cultivation of tobacco leaves to the production and distribution of various tobacco products, the industry is a complex network of interrelated processes. As we delve deeper into this industry, we uncover the trends shaping this lucrative market and the forces driving its growth. Join us as we explore the ins and outs of the tobacco industry in Bahrain, providing a comprehensive guide to its market dynamics and key players.
Early Control Measures
The history of tobacco control in Bahrain dates back to 1978 when a number of control measures were implemented for the first time. These included raising custom duties on cigarettes to 70%, regulating the permissible level of tar and nicotine per cigarette, and restricting cigarette advertising.
Formation of the Bahrain Anti-smoking Society
In 1979, a non-governmental organization, the Bahrain Anti-smoking Society, was formed. The society works in collaboration with the Bahrain government to advocate for tobacco control.
WHO Framework Convention on Tobacco Control
Bahrain became a party to the WHO Framework Convention on Tobacco Control (FCTC) on 20 March 2007. The passing of Royal Decree No. 8 of 2009 marked a significant step forward in tobacco control efforts in the country, introducing the first comprehensive tobacco control law in the Kingdom.
Advertising, Promotion, and Sponsorship Bans
In line with Article 13 of the WHO FCTC, Bahrain implemented a ban on most forms of tobacco advertising, promotion, and sponsorship. This ban aimed to reduce the appeal of tobacco products and limit the tobacco industry’s influence.
Market Growth Projections
The Tobacco Products market in Bahrain is projected to grow by 9.82% (2024-2028), resulting in a market volume of US$1237.0m in 2028. The Smoking Tobacco market is also expected to grow by 9.37% (2024-2028), resulting in a market volume of US$92.0m in 2028.
Shifts in Consumer Preferences
The light segment of the cigarette market is projected to grow since it is perceived as healthier and safer to consume. The safety this type of cigarette offers enables consumers to choose this over other types.
British American Tobacco Middle East S.P.C.
British American Tobacco Middle East S.P.C. is a significant player in the Bahrain tobacco market. The company is a wholly-owned subsidiary of British American Tobacco and is known for its popular brands like Dunhill and Kent.
Potential New Entrants
There have been debates about the opening of a new 75.4 million Dinar (200 Million USD) tobacco plant. The plant’s approval has been subjected to many delays, but if approved, it could generate jobs and contribute to economic growth.
Proposed Tobacco Plant
The proposed tobacco plant could change the 2009 tobacco legislation and open up the tobacco industry in Bahrain. However, it would only make sense for investors to open a tobacco plant where the plant can compete cost-wise
.
what are the current regulations on tobacco use in bahrain
Bahrain has implemented a series of regulations to control tobacco use within the country. The country became a party to the WHO Framework Convention on Tobacco Control (FCTC) on March 20, 2007, which marked a significant step forward in its tobacco control efforts.
The Royal Decree No. 8 of 2009 introduced the first comprehensive tobacco control law in the Kingdom. This law, in line with Article 13 of the WHO FCTC, implemented a ban on most forms of tobacco advertising, promotion, and sponsorship.
In 1994, a tobacco control decree was issued by the Emir of Bahrain to reinforce the anti-smoking campaign. The decree stated that no tobacco was to be cultivated in Bahrain and that smoking was to be restricted in certain areas.
Bahrain has also implemented a comprehensive ban on tobacco advertising, promotion, and sponsorship (TAPS). The ban s implementation has been strictly monitored and compliance data shows it is effective.
In addition to these measures, Bahrain has enforced laws that restrict smoking in public places such as airports, public transport, health centers, government offices, schools, pharmacies, hospitals, religious buildings, shopping complexes, restaurants, cafes, hotels, cinemas, and more.
Furthermore, Bahrain regulated heated tobacco in 2021, and there are no changes expected in the short term to the regulatory framework.
what are the key players in the tobacco industry in bahrain
The key players in the tobacco industry in Bahrain include international tobacco companies that import and distribute tobacco products within the country. British American Tobacco Middle East S.P.C. is one of the significant players in the Bahraini tobacco market, with a presence in the country and a range of popular brands. Intercol, with its premier brand Marlboro, is also a leading company in tobacco sales in Bahrain. These companies, along with others, contribute to the tobacco market’s growth in Bahrain, which is projected to increase by 9.90% from 2024 to 2028.
what are the most popular tobacco products in bahrain
The most popular tobacco products in Bahrain include cigarettes, waterpipes (also known as shisha or hookah), cigars, and pipe tobacco. Cigarette smoking is the most common form of tobacco use in the country. Waterpipe smoking is particularly popular among women and teenagers in Bahrain. The use of waterpipes involves two types of tobacco: narjeela and kadu, with females predominantly smoking narjeela. Additionally, the tobacco used in waterpipe smoking (muasal) is flavored and processed in Bahrain, and its popularity is increasing in the local and regional market.
Conclusion
The tobacco industry in Bahrain is a complex and evolving landscape. With a history marked by stringent control measures, the industry has seen significant changes over the years. Despite the challenges posed by regulatory measures and the COVID-19 pandemic, the industry continues to show potential for growth, presenting opportunities for both existing players and potential new entrants.
Statistics:
The market for tobacco products in Bahrain is expected to grow by 9.82% from 2024 to 2028, reaching a market volume of US$1237.0m in 2028. This growth is indicative of the industry’s resilience and potential for expansion despite regulatory pressures.
FAQs:
- Who are the main tobacco product importers in Bahrain?
Bahrain primarily imports tobacco products from Europe and North America. - What types of tobacco products are available in Bahrain?
Bahrain’s market includes cigarettes, waterpipes, cigars, and pipe tobacco. - Where does Bahrain stand in terms of tobacco control legislation?
Bahrain has implemented a tobacco control decree and is a party to the WHO Framework Convention on Tobacco Control. - Why does Bahrain have a growing tobacco market despite strict regulations?
The growth can be attributed to consumer demand and the introduction of novel products like e-cigarettes. - How does Bahrain’s tobacco taxation policy affect the industry?
Tobacco taxation serves as a control measure to discourage consumption while providing revenue for the government. - Is there a significant prevalence of smoking among Bahrain’s youth?
Yes, the Global Youth Tobacco Survey indicates a notable prevalence of tobacco use among students. - Can Bahrain manufacture its own tobacco products?
Currently, Bahrain does not grow tobacco or manufacture cigarettes; all products are imported. - Does Bahrain have any local tobacco control non-governmental organizations?
Yes, the Bahrain Anti-smoking Society is an NGO that advocates for tobacco control. - Will Bahrain’s market see new entrants in the tobacco industry?
Discussions about establishing a tobacco plant suggest potential new entrants if approved. - What impact did COVID-19 have on Bahrain’s tobacco industry?
The pandemic had a mixed impact, with some areas seeing reduced sales and others an increase due to stress-related consumption. - What are the market trends for smoking tobacco in Bahrain?
There is a projected growth in the smoking tobacco market and shifts in consumer preferences towards lighter cigarettes. - How does the prevalence of smoking in Bahrain compare between genders?
Smoking prevalence is higher among men than women. - What challenges does the Bahrain tobacco industry face?
Challenges include health concerns, regulatory environment, and changing consumer trends. - How does the Bahraini government support tobacco control?
The government has set specific objectives and established a national agency for tobacco control. - What opportunities exist for the tobacco industry in Bahrain?
Opportunities include the potential for new product segments and market expansion.
Books:
While there are no books specifically dedicated to the tobacco industry in Bahrain, “Bitter Leaves” by Rocco Rorandelli provides a global perspective on the tobacco industry’s impact on health, economy, and environment, which could offer relevant insights https://gostbooks.com/en-us/products/bitter-leaves.
Citations:
Authoritative sources on the subject of the tobacco industry in Bahrain include the WHO report on the global tobacco epidemic, 2021 https://cdn.who.int/media/docs/default-source/country-profiles/tobacco/who_rgte_2021_bahrain.pdf?download=true&sfvrsn=91f0e05a_5, Statista’s market forecast for tobacco products in Bahrain https://es.statista.com/outlook/cmo/tobacco-products/bahrain
https://www.statista.com/outlook/cmo/tobacco-products/bahrain, and research articles on tobacco control measures in the country https://applications.emro.who.int/emhj/1303/13_3_2007_719_726.pdf
https://www.researchgate.net/publication/6151419_Tobacco_control_in_Bahrain_An_overview.