South Africa Tobacco Market

South africa's tobacco market outlook is mixed in the 2018-2032 window, with both positive and negative forces influencing the health of the industry. due to the government's membership in the world trade organisation and general favour of free trade, it is likely that the opening of markets due to tariff reductions will result in a rise in tobacco imports, thus competing with domestic producers.on the plus side, the south african government's commitment to tackling smoking related illness has led to the introduction of several measures designed to reduce smoking prevalence such as the ban on advertising and plain packaging. these measures along with traditional health campaigns have resulted in a decreasing number of adults who smoke in the country, which should lead to reduced demand for tobacco in the long run. this cohesive effort to reduce smoking may mean that a tax increase on the consumption of tobacco in the near future is likely.the growth of the tobacco industry is largely dependent on the health of the economy as a whole. in south africa, the economy has been relatively strong over the past several years, leading to a rise in disposable incomes and more people who can afford to buy tobacco products. this has a knock-on effect in terms of production increases and employment growth within the industry.finally, it is worth highlighting the fact that south african smokers have been switching to cigarettes, most notably the less expensive brands. this has happened due to both the availability and affordability of these products. this could be seen as being beneficial for the industry as a whole, as cheaper cigarettes drive sales up in the short-term. however, it does mean that profit margins may come under increased pressure due to the lower prices. overall, the south african tobacco market outlook in the 2018-2032 window appears to be one that is in a state of flux, with both positive and negative forces exerting pressure. the challenge for the industry will be to maintain a balance between these competing pressures in order to ensure a healthy future for the sector.