5.5 million smokers in Saudi Arabia spend $10.6 billion annually

The size of the tobacco market in the Kingdom amounted to approximately $10.6 billion last year, 2024. The number of smokers in Saudi Arabia is approximately 5.5 million. The market size is expected to rise to $12.64 billion by 2033, at a compound annual growth rate (CAGR) of 1.96% during the period from 2025 to 2033, according to IMARC Group estimates.

The report attributed the growth factors of this market to several variables and demographic, economic, and marketing factors, most notably rising disposable income, the increasing number of young adults, the spread of modern retail channels, and the growing social acceptance of smoking. Furthermore, the introduction of premium and flavored cigarettes into the local market, supported by effective marketing strategies targeting youth and segments with high purchasing power. Data also shows that urban residents, particularly in Riyadh, Jeddah, and Dammam, enjoy higher purchasing power and greater access to advanced retail outlets, making them more likely to opt for luxury products that offer what they perceive as added value in terms of taste, packaging, and affiliation with global brands.

On the other hand, Badaal, a subsidiary of the Public Investment Fund, aims to reduce the percentage of smokers in Saudi Arabia to 9% by 2030. The company stated that it has succeeded in helping more than 500,000 people quit smoking thanks to its Desert products.

The company has achieved widespread popularity in the few years since its founding, and its products are in high demand among smokers and young people. The company previously stated, “We have an industrial facility in Jeddah that forms the cornerstone of a plan to localize the production of smoking alternatives in the Kingdom. We are currently working on expanding our production lines and will open a new industrial facility in Riyadh before the end of 2026. We are also considering establishing additional facilities in other cities, which will contribute to job creation, reduce dependence on imports, and increase export capacity.” Badael aims to reach one million smokers by 2028. Badael collaborates with Saudi universities, health associations, and national laboratories to build a supportive social environment for smoking cessation. It also launched the “Tanfas” initiative, a national initiative aimed at empowering smokers to quit using a platform that combines science, awareness, and behavioral support.