Egypt, with approximately 18% of its population being smokers, has a staggering annual consumption of 100 billion cigarettes, for a total of 17 billion EGP.

Since Philip Morris raised prices of several of its top selling brands (April), same as other players did in March, consumer demands have rapidly shifted, posing serious challenges to local producers and raising concerns due to ever present illicit market.

Eastern Company Boosts production in agreement with the Government

As a consequence, to cater to the high demand in Egypt’s domestic market, Hany Aman, Eastern Company‘s CEO plans to expand its production capacity by increasing daily distribution to contractors by 20-30%, reaching a target of 150 million cigarettes per day. Eastern Company, the local leading cigarette manufacturer, already boosted production levels to serve  70 billion cigarettes per year, accounting therefore for 70-75% of the market share.

Furthermore, recognizing the need for stability and controlled pricing in the cigarette market, the Egyptian government has taken initiatives to address the situation.

In a recent meeting with Eastern Company management, Prime Minister Mostafa Madbouly, reviewed their work activity, production volumes, and development plans with the intent to guarantee equilibrium in the market and ensure that cigarette prices remain under control.