Morocco’s Cigarette Sales Surge 4.5% in 2020 Despite Pandemic

According to an authorized source, the market has seen a downward trend over the past 10 years. It would therefore not be an increase in sales, but "rather a recovery of the shortfall that was captured by the informal sector estimated at 20% in 2012". Thus, in 2020, the trend remained the same for the sector for several reasons related to the health crisis. Among others, we can note the various measures to restrict travel between cities, the closure of borders preventing the arrival of tourists, the cessation of activities of hotels, restaurants, bars and cafes...

In total, about 15.2 billion cigarette sticks were sold during the year. The most popular brands are Marlboro from the Société marocaine du tabac (SMT), Marquise from Philip Morris International and Winston from Japanese Tobacco International (JTI).

The domestic consumption tax (TIC) related to tobacco also fell by 2.7% to 11 billion DH. The same goes for the sector’s value added, which fell by 2.4% in the 3rd quarter, after a 1.5% drop in the 2nd quarter and a 6.1% increase in the first quarter of 2020.

Despite these figures, the TIC contributes 10.8% to customs revenue and is the subject of a price increase almost every year. By doing so, the State intends to reduce tobacco consumption and replenish its coffers. In reality, "consumption remains the same... Smokers either bear the final price that is passed on by the tax, or they turn to a lower-priced brand," explains an expert in the sector. It should also be noted that many smokers have abandoned the stick for the electronic cigarette.