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    The South African Tobacco and Tobacco Products Industry 2026

    Carole Veitch | South Africa | 24 April 2026

    The South African Tobacco and Tobacco Products Industry 2024

    Gary Philips | South Africa | 19 January 2024

    The South African Tobacco and Tobacco Products Industry 2021

    Gary Phillips | South Africa | 25 August 2021

    The South African Tobacco and Tobacco Products Industry 2019

    Nina Shand | South Africa | 05 July 2019

    The South African Tobacco and Tobacco Products Industry 2018

    Nina Shand | South Africa | 26 March 2018

    The South African Tobacco and Tobacco Products Industry 2015

    Juliet Gebbie | South Africa | 10 November 2015

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report on the South African tobacco and tobacco products sector examines key industry trends and challenges domestically, regionally, and globally. It provides information on production, trade, corporate actions, competition, and regulatory developments, while also assessing influencing factors, such as unforeseen events, macroeconomic conditions, technological innovation, input costs, and environmental issues. The report profiles 28 players, including British American Tobacco South Africa, JT International South Africa, Philip Morris South Africa, Leonard Dingler, Carnilinx, Polaris Manufacturing, Vape King, Smokey Treats, Limpopo Tobacco Processors, and Universal Leaf.

    Introduction

    • The South African tobacco and tobacco products industry spans agriculture, primary processing and the secondary manufacturing of tobacco products, as well as the supply of heated tobacco products and nicotine alternatives such as e-cigarettes (vapes) and oral pouches.
    • Although smoking prevalence has rebounded in recent years, the volume of legally declared cigarettes has declined sharply, falling by 62% from nearly 22.0?billion sticks in 2014/15 to 8.3?billion in 2024/25. This contraction is largely attributed to the rapid expansion of the illicit market, which has grown from about 30% of total sales in 2014/15 to current levels of between 60% and 75%.
    • Industry analysts estimate that the country is losing up to R28.0bn in excise revenue annually to illegal cigarette sales. Treasury’s 2025 Budget Review estimated tobacco excise revenue at R9.8bn for the financial year to end-March 2026, reflecting a year-on-year increase of 4.5%. However, despite annual excise rate increases, collections remain well below historical levels.
    • The dominance of the illicit cigarette trade has distorted competition and weakened legitimate manufacturers, culminating in British American Tobacco South Africa’s decision to exit local manufacturing by the end of 2026.
    • Global instability, particularly the Iran war and wider Middle East crisis, has further intensified pressures by disrupting supply chains and driving up the cost of imported inputs. Against this backdrop, many producers are switching their focus from traditional products to next generation smokeless alternatives like vapes and oral nicotine pouches.

    Trends

    • Closed, disposable vaping systems are the fastest growing e-cigarette segment.
    • Compliant manufacturers are cutting back production, as growing illicit trade diverts consumers toward cheaper, untaxed cigarettes.
    • Demand for locally grown tobacco leaf continues to decline, and output has fallen, with many small-scale contract farmers switching to other crops.
    • Intensifying rivalry among vape companies is driving down retail prices, making products more accessible to younger and lower-income consumers.
    • The number of smokers in South Africa appears to be increasing, driven to a significant extent by the widespread availability of cheap, illegal cigarettes.
    • The sharp increase in vaping among high school students is raising public health concerns.
    • Tighter fiscal oversight, with SARS expanding excise frameworks to capture revenue from e-cigarettes and heated tobacco.
    • Tobacco-linked companies are increasingly rebranding as fast-moving consumer goods (FMCG) or wellness-oriented companies to mitigate reputational risk.
    • Vaping companies are increasingly diversifying their product lines to include cannabis-linked products like CBD.

    Opportunities

    • Anti illicit trade monitoring, providing data, auditing, or community based monitoring services.
    • Converting tobacco biomass into biofuels.
    • Environmental services, addressing e waste from electronic delivery systems.
    • Leaf grading and curing services, including the provision of curing and/or grading facilities.
    • Producing tobacco based biopesticides.
    • Repurposing tobacco waste streams (stalks, stems, dust) into eco paper, packaging, and specialty fibre products.
    • Selling legal vape liquids, heated tobacco products and oral nicotine pouches.
    • Small scale manufacturing of niche products such as pipe tobacco, snuff, cigars, or herbal cigarette blends.
    • Supplying compliant packaging materials.
    • Tobacco seedling nurseries, supplying plants to larger farms.
    • Transporting tobacco products from farms to processors, manufacturers, or retailers.

    Challenges

    • Regulatory uncertainty relating to the Control of Tobacco Products and Electronic Delivery Systems Bill.
    • South Africa’s growing illicit cigarette industry poses a significant threat to consumers, compliant suppliers, and government
    • The South African government has still not ratified the World Health Organisation’s Protocol to Eliminate Illicit Trade in Tobacco Products.
    • There are concerns about the uptake of vaping among children and adolescents.
    • There are growing concerns around e-waste, particularly from disposable vapes and other single-use devices.
    • Tobacco crops yields are sensitive to climate variability.
    • Tobacco farming has negative environmental impacts.
    • Tobacco smoking prevalence has increased due to the availability of cheap cigarettes.
    • Tobacco supply chains face higher input costs, supply disruptions, and shipping delays due to prevailing geopolitical crises.

    Outlook

    • The South African tobacco and tobacco products industry faces a period of heightened uncertainty as the Middle East crisis triggers supply chain disruptions and drives up costs across the value chain. Tobacco farming is particularly exposed, with heavy reliance on imported fertiliser and fuel amplifying vulnerability to global price shocks.
    • Tobacco processing and manufacturing remain constrained by the dominance of illicit trade, which continues to undermine excise revenue and distort competition.
    • Rising input costs linked to international instability will compound these pressures, leaving compliant manufacturers squeezed between escalating overheads and untaxed competitors.
    • Although next generation products such as e cigarettes, heated tobacco, and oral nicotine pouches offer potential diversification opportunities, their future is not assured. A growing body of scientific evidence examining the health impacts of vaping has prompted regulatory reviews worldwide, raising the possibility of tighter restrictions that could limit market growth.
    • This uncertainty, combined with mounting cost pressures, suggests that South Africa’s transition to alternative products may be slower, more contested, and highly dependent on regulatory clarity and consumer acceptance.

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 7
    2.2. Geographic Position 9
    2.3. Size of the Industry 10
    3. LOCAL 14
    3.1. State of the Industry 14
    3.2. Key Trends 20
    3.3. Key Issues 20
    3.4. Notable Players 21
    3.5. Trade 23
    3.6. Corporate Actions 27
    3.7. Regulations 27
    3.8. Enterprise Development and Social Development 29
    4. AFRICA 30
    5. INTERNATIONAL 37
    6. INFLUENCING FACTORS 43
    6.1. Unforeseen Events 43
    6.2. Economic Environment 45
    6.3. Labour 47
    6.4. The Growth of the Illicit Market 49
    6.5. Health and Environmental Issues 49
    6.6. Technology, R&D, Innovation 50
    6.7. Input Costs 51
    7. COMPETITIVE ENVIRONMENT 52
    7.1. Competition 52
    7.2. Ownership Structure of the Industry 53
    7.3. Barriers to Entry 53
    8. INDUSTRY SUMMARY 54
    9. OUTLOOK 55
    10. INDUSTRY ASSOCIATIONS 55
    11. REFERENCES 56
    11.1. Publications 56
    11.2. Websites 57
    ANNEXURE 1 58
    Relevant Legislation 58
    APPENDIX 1 65
    Summary of Notable Players 65
    COMPANY PROFILES 70
    AMALGAMATED TOBACCO MANUFACTURING (PTY) LTD 70
    BEST TOBACCO COMPANY (PTY) LTD 72
    BEWOLK INDUSTRIES (PTY) LTD 73
    BRITISH AMERICAN TOBACCO SOUTH AFRICA (PTY) LTD 74
    CARNILINX (PTY) LTD 77
    FLUE CURED TOBACCO RESEARCH COMPANY (RF) NPC 79
    FOLHA MANUFACTURERS (PTY) LTD 80
    HOME OF CUT RAG (PTY) LTD 81
    IMPTOB SOUTH AFRICA (PTY) LTD 83
    JT INTERNATIONAL SOUTH AFRICA (PTY) LTD 84
    LEONARD DINGLER (PTY) LTD 86
    LIMPOPO TOBACCO PROCESSORS (PTY) LTD 88
    LOWVELD AGRI RESEARCH AND SUPPORT SERVICES (PTY) LTD 90
    OTP DISTRIBUTORS (PTY) LTD 91
    PACIFIC CIGARETTE COMPANY (PTY) LTD (THE) 93
    PHILIP MORRIS SOUTH AFRICA (PTY) LTD 94
    POLARIS MANUFACTURING (PTY) LTD 95
    PROTOBAC (PTY) LTD 97
    SMOKEY TREATS (PTY) LTD 98
    SNYMAN TOBACCO (PTY) LTD 99
    TOBACCO PRODUCER DEVELOPMENT (PTY) LTD 100
    UNIVERSAL LEAF SOUTH AFRICA (PTY) LTD 101
    VAN ERKOMS TABAKKE (PTY) LTD 102
    VAPE AFRICA (PTY) LTD 104
    VAPE MANUFACTURING AND DISTRIBUTION (PTY) LTD 106
    VAPE STUDIO (PTY) LTD (THE) 109
    VAPEBORATORIES (PTY) LTD 111
    VAPERITE (PTY) LTD 112

    Report Coverage

    This report on the tobacco and tobacco products industry includes information on tobacco farming and processing, cigarette manufacturing and tobacco, e-cigarettes, and tobacco heating products. There is comprehensive information on the state and size of the sector, major manufacturers, distributors and brands, the effects of a large and growing illicit industry, notable players, trade in tobacco leaf and manufactured products, and influencing factors including health and environmental issues and innovation. There are profiles of 28 companies including major international players such as JT International, British American Tobacco and Philip Morris, major players in the local market such as Gold Leaf and Carnilinx, green tobacco leaf processor LTP and vape companies such as Vape Africa, Vaperite and the Vape Studio.

    Introduction

    • South Africa’s tobacco industry is facing enormous challenges from an illicit cigarette market that entrenched itself during the five-month tobacco sales ban in 2020.
    • Illicit sales of cheaper cigarettes appear to occupy over half of the market and duties are collected on less than half of all cigarettes sold.
    • Low revenue and volumes have resulted in a dramatic drop off in demand for tobacco leaf, causing the exit of many tobacco farmers from the industry.
    • Competition has increased in the e-cigarette market, which is shifting from refillable cartridge and tank devices to cheaper, disposable units.
    • Tobacco products and vape companies are concerned that legislation bringing e-cigarettes into the regulatory and tax net will destroy the industry.
    • Industry players say intensifying tobacco controls in an environment of a large illicit economy will entrench illicit sales rather than discourage tobacco use.

    Trends

    • Closed, disposable vape devices are driving growth and the biggest part of the e-cigarette market.
    • E-liquids became subject to excise duties from mid-2023.
    • Illicit cigarette sales have increased and dominate the market.
    • Increased competition among vape companies is leading to reduced prices.
    • The number of smokers in South Africa appears to be increasing.
    • There is declining demand for, and planting of, tobacco leaf, especially by small contract farmers.
    • Vape companies incorporating CBD flavours into e-liquid.

    Opportunities

    • The arrival of new vape products and retailers show there is opportunity in the market.
    • The vape market is growing.

    Challenges

    • Illicit tobacco sales are entrenched in the market.
    • Proposed new tobacco controls legislation will significantly impact tobacco and vape companies.

    Outlook

    • The rapid growth of illicit cigarettes and looming stricter tobacco marketing controls mean the outlook for the industry is far from positive.
    • The industry fears that increased excise duties will further entrench the illicit economy.
    • A key factor is whether alleged widespread practices of tax avoidance will be addressed.
    • The vape market is growing strongly, but excise duties introduced in 2023 and proposed regulation is causing concern about profitability.

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    The South African Tobacco and Tobacco Products Industry 2015-11-10

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 7
    2.3. Size of the Industry 8
    3. LOCAL 12
    3.1. State of the Industry 12
    3.2. Key Trends 15
    3.3. Key Issues 16
    3.4. Notable Players 16
    3.5. Trade 18
    3.6. Corporate Actions 23
    3.7. Tobacco Controls and Regulations 23
    3.8. Enterprise Development and Social Development 25
    4. AFRICA 26
    5. INTERNATIONAL 30
    6. INFLUENCING FACTORS 35
    6.1. Unforeseen Events 35
    6.2. Economic Environment 36
    6.3. Labour 37
    6.4. The Growth of the Illicit Market 39
    6.5. Health and Environmental Issues 39
    6.6. Technology, R&D, Innovation 41
    6.7. Input Costs 42
    7. COMPETITIVE ENVIRONMENT 42
    7.1. Competition 42
    7.2. Ownership Structure of the Industry 43
    7.3. Barriers to Entry 43
    8. INDUSTRY SUMMARY 44
    9. OUTLOOK 44
    10. INDUSTRY ASSOCIATIONS 45
    11. REFERENCES 45
    11.1. Publications 45
    11.2. Websites 47
    APPENDIX 1 48
    Summary of Notable Players 48
    COMPANY PROFILES 53
    Afroberg Tobacco Manufacturing (Pty) Ltd 53
    Amalgamated Tobacco Manufacturing (Pty) Ltd 55
    Best Tobacco Company (Pty) Ltd 57
    Bewolk Industries (Pty) Ltd 58
    British American Tobacco South Africa (Pty) Ltd 59
    Carnilinx (Pty) Ltd 62
    Flue Cured Tobacco Research Company (RF) NPC 64
    Folha Manufacturers (Pty) Ltd 65
    Gold Leaf Tobacco Corporation (Pty) Ltd 66
    Home of Cut Rag (Pty) Ltd 68
    IMPTOB South Africa (Pty) Ltd 70
    JT International South Africa (Pty) Ltd 71
    Leonard Dingler (Pty) Ltd 73
    Limpopo Tobacco Processors (Pty) Ltd 75
    Lowveld Agri Research and Support Services (Pty) Ltd 77
    OTP Distributors (Pty) Ltd 78
    Pacific Cigarette Company (Pty) Ltd (The) 80
    Philip Morris South Africa (Pty) Ltd 81
    Smokey Treats (Pty) Ltd 83
    Tobacco Producer Development (Pty) Ltd 84
    Twisp (Pty) Ltd 85
    Universal Leaf South Africa (Pty) Ltd 86
    Van Erkoms Tabakke (Pty) Ltd 87
    Vape Africa (Pty) Ltd 89
    Vape Manufacturing and Distribution (Pty) Ltd 91
    Vape Studio (Pty) Ltd (The) 93
    Vapeboratories (Pty) Ltd 94
    Vaperite (Pty) Ltd 95

    Report Coverage

    This report focuses on the South African tobacco and tobacco products industry and contains comprehensive information on the state and size of the sector, trade, corporate actions and regulations. It includes information on the major players in manufacture and retail, the rapidly-growing illicit market, e-cigarettes and health and environmental concerns. There are profiles of 24 companies including major players such as British American Tobacco, JT International and Philip Morris, e-cigarette companies such as Vape Manufacturing and Distribution and Limpopo Tobacco Processors, South Africa’s only green leaf processor.

    Introduction

    The tobacco and tobacco products industry, calculated to be contributing about R31bn to the South African economy in 2021 and employing around 14,000 people, is under strain. After more than a decade of pressure from a mix of increasing government tobacco controls, a growing illicit cigarette economy and changing consumer attitudes towards smoking, in 2020 the industry was subjected to the shock of a twenty-week prohibition on the sale of all raw tobacco leaf, processed tobacco and all manufactured tobacco products under coronavirus lockdown measures. Entering 2021 having lost huge market share to illicit cigarette sales, the tobacco industry was faced with an 8% increase in excise duties for tobacco products and announcements of renewed government efforts to finalise further tobacco controls. The industry believes the new controls would put further pressure on it without addressing the mushrooming problem of illicit cigarette sales. The proposed new controls also include regulating and taxing e-cigarettes for the first time in South Africa. This has concerned the vaping industry and the major tobacco manufacturers that have begun investing in these “next generation products” as alternative growth markets. While tobacco product manufacturers have some options available to respond, such as investing in next generation products, growing export markets or importing cheaper inputs, the tobacco leaf farming and processing industry does not. It is hugely dependent on the downstream market structure succeeding. Having experienced extensive contraction and consolidation when tobacco leaf marketing was liberalised in the mid-1990s, the farming and processing industries have rebuilt to a measure with support from British American Tobacco South Africa (BATSA) and agricultural services company Afgri. However, around 90% of locally-farmed and -processed tobacco leaf is sold to BATSA, leaving upstream farmers and the country’s only remaining green leaf processor exposed to risks in downstream market dynamics and without any serious alternatively identified value chains. All players in the industry are united in the belief that addressing the illicit cigarette economy is the key factor to improving the industry’s future prospects. With the revival of the South African Revenue Service’s (Sars) capacity to investigate and prosecute illicit product sellers – and renewed interest in applying policy instruments provided by the World Health Organisation’s (WHO) Framework Convention on Tobacco Control (FCTC) and the Protocol to Eliminate Illicit Trade in Tobacco Products – there is a possibility for a fresh state-led endeavour to protect and develop the industry. Relations within the industry, and between the industry and government, are filled with hostility, however, with accusation and counter-accusation prevailing, particularly around allegations of participation in the illicit economy and questioning of commitment to see the illicit economy eliminated.

    Strengths

    • Markets for farmers are secured through Limpopo Tobacco Processor’s supply relationship to British American Tobacco South Africa.
    • Support is provided to farmers, especially small farmers.
    • The addictive nature of nicotine secures demand for tobacco products.
    • There has been substantial investment in the sales and distribution network.
    • Tobacco farming is labour-intensive.

    Weaknesses

    • Domination of the local market by one big player.
    • Sector is tainted by a history of corruption, tax avoidance and participation by some in the illicit economy.
    • Tobacco is associated with major health risks, including cancer.

    Opportunities

    • Development of smallscale tobacco farmers.
    • Next generation heat-not-burn and e-cigarette products, especially in importing, wholesale and retail.
    • Proximity to markets in Africa that may introduce anti-smoking measures more slowly than other regions.

    Threats

    • Declining local market.
    • Growth in illicit trade.
    • Increased regulation by government including plain packaging regulations.
    • Increasing excise duties.
    • Reduced consumer spending as a result of depressed economic conditions.
    • Regulation and taxing of e-cigarettes under new tobacco controls

    Outlook

    South Africa’s tobacco and tobacco products industry is a well-established, mature industry that has been through significant challenges and changes in the last thirty years. The towering presence of BATSA throughout the value-chain has led to investment and development in upstream aspects of the industry, rescuing tobacco processing and providing opportunity for small leaf growers. Meanwhile, small South African manufacturers have firmly established themselves despite the near monopoly conditions at the time of their emergence just over a decade ago. The industry’s next-generation product markets are also showing strong progress through investments by BATSA, Philip Morris and others. This resilience has been shown in the face of rapidly-increasing excise duties and non-price tobacco controls, the damage of the growing illicit economy and the shock of the coronavirus lockdown sales prohibition. Future challenges, however, remain enormous. Proposed tighter tobacco controls, including the proposed regulation and taxing of e-cigarettes, the strengthened hand of the illicit economy after the sales prohibition, South Africa’s disrupted economic recovery in 2021 and a declining cigarette market all conspire to work against the industry. The development of consumer wealth in South Africa is vital for the growth of premium-priced next-generation products which would otherwise be considered unaffordable. The market is already dominated by BATSA. The most critical issue for the industry, however, is the successful combatting of the illicit economy. Much hangs on the implementation of a track-and-trace system and much hope lies in seeing it achieve the successes noted in Kenya. Until then, it is one of the biggest threats facing the industry. If the less welcome future scenarios materialise, multinational companies in the industry will exercise options afforded to them through their global investments to restructure their operations and navigate marketing under the stringent tobacco controls with experience they’ve gained in other countries. Farmers, processors and local manufacturers, however, will need to work hard to develop their options. Accessing export opportunities in Africa’s growing tobacco leaf and tobacco product markets will become vital.

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    The South African Tobacco and Tobacco Products Industry 2024-01-19

    R 6 500.00(ZAR) estimated $394.98 (USD)*

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    R 1 900.00(ZAR) estimated $115.46 (USD)*

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    The South African Tobacco and Tobacco Products Industry 2018-03-26

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    The South African Tobacco and Tobacco Products Industry 2015-11-10

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 2
    2.1. Industry Value Chain 4
    2.2. Geographic Position 8
    3. SIZE OF THE INDUSTRY 9
    4. STATE OF THE INDUSTRY 16
    4.1. Local 16
    4.1.1. British American Tobacco South Africa 17
    4.1.2. Tobacco Control and Regulations 20
    4.1.3. Trade 24
    4.1.4. Corporate Actions 34
    4.1.5. Enterprise Development and Social Economic Development 35
    4.2. Continental 36
    4.3. International 40
    5. INFLUENCING FACTORS 47
    5.1. Coronavirus 47
    5.2. Economic Environment 49
    5.3. The Growth of the Illicit Market 51
    5.4. Technology, Research and Development (R&D) and Innovation 55
    5.5. Health and Environmental Concerns 57
    5.6. Labour 58
    6. COMPETITION 63
    6.1. Barriers to Entry 64
    7. SWOT ANALYSIS 64
    8. OUTLOOK 65
    9. INDUSTRY ASSOCIATIONS 66
    10. REFERENCES 66
    10.1. Publications 66
    10.2. Websites 69
    APPENDIX 1 70
    Summary Of Notable Players 70
    ORGANOGRAM – MANUFACTURE OF TOBACCO PRODUCTS 75
    ORGANOGRAM – WHOLESALE TRADE IN TOBACCO PRODUCTS 77
    COMPANY PROFILES 79
    AFROBERG TOBACCO MANUFACTURING (PTY) LTD 79
    AMALGAMATED TOBACCO MANUFACTURING (PTY) LTD 80
    BEST TOBACCO COMPANY (PTY) LTD 82
    BRITISH AMERICAN TOBACCO SOUTH AFRICA (PTY) LTD 83
    CARNILINX (PTY) LTD 86
    FLUE CURED TOBACCO RESEARCH COMPANY (RF) NPC 88
    FOLHA MANUFACTURERS (PTY) LTD 89
    GOLD LEAF TOBACCO CORPORATION (PTY) LTD 90
    HOME OF CUT RAG (PTY) LTD 92
    IMPTOB SOUTH AFRICA (PTY) LTD 94
    JT INTERNATIONAL SOUTH AFRICA (PTY) LTD 95
    LEONARD DINGLER (PTY) LTD 97
    LIMPOPO TOBACCO PROCESSORS (PTY) LTD 99
    LOWVELD AGRI RESEARCH AND SUPPORT SERVICES (PTY) LTD 101
    OTP DISTRIBUTORS (PTY) LTD 102
    PACIFIC CIGARETTE COMPANY (PTY) LTD (THE) 104
    PHILIP MORRIS SOUTH AFRICA (PTY) LTD 106
    TOBACCO PRODUCER DEVELOPMENT (PTY) LTD 108
    TWISP (PTY) LTD 109
    UNIVERSAL LEAF SOUTH AFRICA (PTY) LTD 110
    VAN ERKOMS TABAKKE (PTY) LTD 111
    VAPE AFRICA (PTY) LTD 113
    VAPE MANUFACTURING AND DISTRIBUTION (PTY) LTD 115
    VAPERITE (PTY) LTD 117

    Report Coverage

    This report covers the tobacco manufacturing industry, including the size and state of the industry and the factors that influence it. These include detailed descriptions of proposed legislation, the illicit tobacco trade and the e-cigarette market. There are profiles of 16 companies including British American Tobacco South Africa which is estimated to hold 74% of the legal market and 22 out of around 30 brands. There are also profiles of Philip Morris, with leading brands Marlboro and Chesterfield, and its subsidiary Leonard Dingler, which manufactures products such as pipe tobacco and snuff. Other profiles include Limpopo Tobacco Processors, the biggest single supplier of tobacco leaves to local buyers.

    Introduction

    The report focuses on the manufacture of tobacco in South Africa, an industry that is estimated to be worth close to R30bn and supported by nearly 8 million adult tobacco users. While the number of legally-declared cigarettes declined more than 20% between 2013 and 2018, according to industry sources the illegal trade grew to 33% of the total market in 2018. The industry has been a significant contributor to the government purse, although this has dropped over the past five years due to a decrease in the number of declared cigarettes, losing the fiscus an estimated R8bn in taxes per year. The rampant illicit trade in cigarettes is blamed for the reduction in cigarette sales volumes for multinational tobacco companies. This has also meant small leaf orders to farmers over the past two years. Another key issue facing the industry is government’s plans to further tighten legislation with regard to smoking and the introduction of plain packaging.

    Strengths

    • In general there are good relations between tobacco growers and manufacturers.
    • Smoking is addictive so there is steady demand for product.
    • There has been substantial investment in the sales and distribution network of the tobacco industry.
    • Tobacco farming is highly labour-intensive.

    Weaknesses

    • Domination of the local market by one big player.
    • Sector is tainted by corruption and bribery.
    • Tobacco is associated with major health risks, including cancer.

    Opportunities

    • Development of small-scale tobacco farmers.
    • Heat-not-burn and e-cigarettes.
    • Proximity to markets in Africa that may introduce anti-smoking measures more slowly than other regions.

    Threats

    • Declining local market.
    • Growth in the illicit trade.
    • Increase in consumers switching to heat-not-burn and e-cigarettes.
    • Increased regulation by government including plain packaging regulations.
    • Increasing excise duties.
    • Reduced consumer spending as a result of depressed economic conditions.

    Outlook

    Anticipated regulatory changes will have a significant impact on the tobacco manufacturing industry. Sales will be restricted by the proposed ban on the public display of tobacco products by retailers, ban of smoking in public and the plain packaging requirements. The regulations will exacerbate the declining sales seen in developed countries as a result of health concerns. Tobacco companies will need to focus on markets in developing countries where there are poor tobacco controls and markers are unregulated. Cigarette consumption in Africa is rising, making the continent an attractive destination for tobacco companies. Locally, cigarette sales volumes are expected to remain stagnant. Although cigarette companies have begun to acquire e-cigarette and vaping brands, e-cigarette sales in South Africa are not expected to have much impact on conventional cigarette sales as they remain unaffordable for the vast majority of the country’s smokers.

    Read More..
    The South African Tobacco and Tobacco Products Industry
    The South African Tobacco and Tobacco Products Industry 2019

    Full Report

    R 1 900.00(ZAR) estimated $115.46 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 80.82 (USD)*

    Buy Now +

    Historical Reports

    The South African Tobacco and Tobacco Products Industry 2026-04-24

    R 20 000.00(ZAR) estimated $1215.34 (USD)*

    View Report Add to Cart

    The South African Tobacco and Tobacco Products Industry 2024-01-19

    R 6 500.00(ZAR) estimated $394.98 (USD)*

    View Report Add to Cart

    The South African Tobacco and Tobacco Products Industry 2021-08-25

    R 1 900.00(ZAR) estimated $115.46 (USD)*

    View Report Add to Cart

    The South African Tobacco and Tobacco Products Industry 2018-03-26

    R 1 900.00(ZAR) estimated $115.46 (USD)*

    View Report Add to Cart

    The South African Tobacco and Tobacco Products Industry 2015-11-10

    R 1 900.00(ZAR) estimated $115.46 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 8
    4.1. Local 8
    4.1.1. Corporate Actions 11
    4.1.2. Regulations 12
    4.1.3. Enterprise Development and Social Economic Development 14
    4.2. Continental 16
    4.3. International 19
    5. INFLUENCING FACTORS 23
    5.1. Economic Environment 23
    5.2. Health Concerns 24
    5.3. Proposals to Ban the Growing of Tobacco 25
    5.4. Regulations 25
    5.5. Illicit Trade 26
    5.6. Technology, Research and Development (R&D) and Innovation 28
    5.7. Labour 30
    5.8. Environmental Concerns 32
    6. COMPETITION 33
    6.1. Barriers to Entry 34
    7. SWOT ANALYSIS 35
    8. OUTLOOK 36
    9. INDUSTRY ASSOCIATIONS 36
    10. REFERENCES 36
    10.1. Publications 36
    10.2. Websites 37
    APPENDIX 1 39
    Summary of Notable Players 39
    COMPANY PROFILES 44
    AFROBERG TOBACCO MANUFACTURING (PTY) LTD 44
    AMALGAMATED TOBACCO MANUFACTURING (PTY) LTD 45
    BEST TOBACCO COMPANY (PTY) LTD 47
    BRITISH AMERICAN TOBACCO SOUTH AFRICA (PTY) LTD 48
    CARNILINX (PTY) LTD 51
    FOLHA MANUFACTURERS (PTY) LTD 53
    GOLD LEAF TOBACCO CORPORATION (PTY) LTD 54
    HOME OF CUT RAG (PTY) LTD 56
    JT INTERNATIONAL SOUTH AFRICA (PTY) LTD 58
    LEONARD DINGLER (PTY) LTD 60
    LIMPOPO TOBACCO PROCESSORS (PTY) LTD 62
    OTP DISTRIBUTORS (PTY) LTD 64
    PHILIP MORRIS SOUTH AFRICA (PTY) LTD 66
    PROTOBAC (PTY) LTD 68
    UNIVERSAL LEAF SOUTH AFRICA (PTY) LTD 69
    VAN ERKOMS TABAKKE (PTY) LTD 71

    Report Coverage

    The report on the South African tobacco industry describes current conditions and factors influencing the success of the industry, including government plans to further tighten legislation and the introduction of plain packaging. The negative effect of the severe drought and exceedingly hot temperatures in some areas as well as the continued illicit trafficking of cigarettes are also discussed. The report profiles 15 companies, including the three major players and smaller players such as Folha Manufacturers and Afroberg Tobacco Manufacturing. Also profiled is Gauteng-based Gold Leaf Tobacco Corporation which announced in 2017 that it planned to set up a US$1.5m plant in Harare, Zimbabwe within two years.

    Introduction

    The report focuses on the manufacture of tobacco in South Africa, an industry that is estimated to be worth R28.8bn supported by 8.2 million adult tobacco users. It is a significant contributor to the government purse, paying more than R16.6bn in excise duty and VAT in the 2016/2017 marketing season. A key issue facing the industry continues to be government plans to further tighten legislation with regard to smoking and the introduction of plain packaging. Although the consumption of legal products has declined 30% over the past ten years, the illegal trafficking of cigarettes continues to plague the industry. Illicit trafficking is estimated at 23% of the tobacco industry and costs the economy R4bn.

    Strengths

    • In general, good relations exist between tobacco growers and manufacturers.
    • There has been substantial investment in the sales and distribution network of the tobacco industry.
    • Tobacco farming is highly labour-intensive.

    Weaknesses

    • Domination of the local market by one big player.
    • Sector is tainted by corruption and bribery.
    • Tobacco is associated with major health risks, including cancer.

    Opportunities

    • Acquisition of e-cigarette and vaping brands.
    • Development of small-scale tobacco farmers.
    • Proximity to markets in Africa that may introduce anti-smoking measures more slowly than other regions.

    Threats

    • Declining local market.
    • Decreasing area under tobacco cultivation as the WHO plans to phase out tobacco farming.
    • Growth in the illicit trade.
    • Increased regulation by government including plain packaging regulations.
    • Increasing excise duties.
    • Reduced consumer spending as a result of general depressed economic conditions.

    Outlook

    Declining sales of cigarettes in developed companies are likely to be compensated for by increased sales in developing countries, as population growth and the levels of disposable income increase in these areas. Locally, cigarette sales in terms of quantities sold are expected to continue to decline, and additional restrictions on packaging are likely to be introduced in the near future. Other anticipated regulatory changes such as cigarettes no longer being publicly displayed by retailers are designed to further restrict sales and there is concern that the impending legislation could exacerbate the already high levels of illicit trade. Although cigarette companies have begun to acquire e-cigarette and vaping brands, e-cigarette sales in South Africa are not expected to have much impact on conventional cigarette sales as they remain unaffordable for the vast majority of the country’s smokers.

    Read More..
    The South African Tobacco and Tobacco Products Industry
    The South African Tobacco and Tobacco Products Industry 2018

    Full Report

    R 1 900.00(ZAR) estimated $115.46 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 80.82 (USD)*

    Buy Now +

    Historical Reports

    The South African Tobacco and Tobacco Products Industry 2026-04-24

    R 20 000.00(ZAR) estimated $1215.34 (USD)*

    View Report Add to Cart

    The South African Tobacco and Tobacco Products Industry 2024-01-19

    R 6 500.00(ZAR) estimated $394.98 (USD)*

    View Report Add to Cart

    The South African Tobacco and Tobacco Products Industry 2021-08-25

    R 1 900.00(ZAR) estimated $115.46 (USD)*

    View Report Add to Cart

    The South African Tobacco and Tobacco Products Industry 2019-07-05

    R 1 900.00(ZAR) estimated $115.46 (USD)*

    View Report Add to Cart

    The South African Tobacco and Tobacco Products Industry 2015-11-10

    R 1 900.00(ZAR) estimated $115.46 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 12
    4.1. Local 12
    4.1.1. Corporate Actions 15
    4.1.2. Regulations 15
    4.1.3. Enterprise Development and Social Economic Development 17
    4.2. Continental 19
    4.3. International 21
    5. INFLUENCING FACTORS 24
    5.1. Economic Environment 24
    5.2. Health Concerns 25
    5.3. Proposals to Ban the Growing of Tobacco 25
    5.4. Regulations 26
    5.5. Illicit Trade 27
    5.6. Technology, Research and Development (R&D) and Innovation 28
    5.7. Labour 30
    5.8. Environmental Concerns 31
    6. COMPETITION 33
    6.1. Barriers to Entry 34
    7. SWOT ANALYSIS 34
    8. OUTLOOK 35
    9. INDUSTRY ASSOCIATIONS 35
    10. REFERENCES 36
    10.1. Publications 36
    10.2. Websites 36
    COMPANY PROFILES 38
    AFROBERG TOBACCO MANUFACTURING (PTY) LTD 38
    AMALGAMATED TOBACCO MANUFACTURING (PTY) LTD 39
    BEST TOBACCO COMPANY (PTY) LTD 41
    BRITISH AMERICAN TOBACCO SOUTH AFRICA (PTY) LTD 42
    CARNILINX (PTY) LTD 45
    FOLHA MANUFACTURERS (PTY) LTD 47
    GOLD LEAF TOBACCO CORPORATION (PTY) LTD 48
    HOME OF CUT RAG (PTY) LTD 50
    JT INTERNATIONAL SOUTH AFRICA (PTY) LTD 51
    LEONARD DINGLER (PTY) LTD 53
    LIMPOPO TOBACCO PROCESSORS (PTY) LTD 55
    OTP DISTRIBUTORS (PTY) LTD 57
    PHILIP MORRIS SOUTH AFRICA (PTY) LTD 59
    PROTOBAC (PTY) LTD 61
    UNIVERSAL LEAF SOUTH AFRICA (PTY) LTD 62
    VAN ERKOMS TABAKKE (PTY) LTD 64

    Report Coverage

    The report on the South African tobacco industry describes the current market and developments in the e-cigarette sector and focuses on factors influencing the success of the industry. The report profiles ten companies, including the dominant British American Tobacco, which manufactures 27 billion cigarettes per annum for the domestic and international markets and has a local market share of approximately 85%. Also profiled is local company, Carnilinx (Pty) Ltd t/a CTC, which manufactures a number of less expensive brands, and Philip Morris South Africa (Pty) Ltd, importer of well-known brands, Chesterfield and Marlboro.

    Introduction

    This report focuses on the South African tobacco industry, which is worth R29bn, contributes more than R12bn in excise duty and VAT per annum and is supported by about 7.7 million tobacco users, 6.3 million of whom smoke cigarettes. The local industry which is dominated by one main manufacturer is finding itself under increasing pressure. One of the key issues facing the tobacco industry is tightening legislation with regard to smoking, with the government aiming to introduce further restrictions in the next few years. In addition, illegal trafficking of cigarettes is placing the industry under pressure both locally and internationally. In South Africa, illicit trading is estimated to account for 23% of the tobacco market.

    Strengths

    • There has been substantial investment in the sales and distribution network of the tobacco industry.
    • Tobacco farming is highly labour-intensive.

    Weaknesses

    • Domination of the local market by one big player.
    • Tobacco is associated with major health risks, including cancer.

    Opportunities

    • Development of small-scale farmers growing tobacco.
    • New innovations, such as e-cigarettes.
    • Proximity to markets in Africa that may introduce anti-smoking measures more slowly than other regions.

    Threats

    • Decreasing area under tobacco cultivation and the WHO plans to phase out tobacco farming.
    • Illicit trafficking.
    • Increasing costs associated with greater regulations.
    • Land reform disputes could have an impact on tobacco farming in the country.
    • Reduced consumer spending.
    • South African government is keen on plain packaging regulations.

    Outlook

    In terms of tobacco farming in South Africa, this sector of the industry is facing a number of uncertainties including erratic weather conditions, rising production costs, unreliable electricity supply and uncertainty around the issue of land reform. Cigarette sales in terms of quantities sold are expected to continue to decline, and additional restrictions on packaging are likely to be introduced in the near future, particularly with regard to plain packaging. Although the acquisition of e-cigarette brands by cigarette companies has taken place globally, this has not yet been the case in South Africa and e-cigarette sales are not expected to have much impact on conventional cigarette sales, as they remain unaffordable for the vast majority of South African smokers. Internationally, declining sales of cigarettes in developed companies are being compensated for by an increase in developing countries, as population growth and the levels of disposable income increase. Tightening regulation of the industry, as well as increased taxation, continues to place pressure on the industry, and the emphasis for tobacco manufacturers is likely to continue to be on the development of potentially healthier tobacco alternatives such as e-cigarettes.

    Read More..
    The South African Tobacco and Tobacco Products Industry
    The South African Tobacco and Tobacco Products Industry 2015

    Full Report

    R 1 900.00(ZAR) estimated $115.46 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 80.82 (USD)*

    Buy Now +

    Historical Reports

    The South African Tobacco and Tobacco Products Industry 2026-04-24

    R 20 000.00(ZAR) estimated $1215.34 (USD)*

    View Report Add to Cart

    The South African Tobacco and Tobacco Products Industry 2024-01-19

    R 6 500.00(ZAR) estimated $394.98 (USD)*

    View Report Add to Cart

    The South African Tobacco and Tobacco Products Industry 2021-08-25

    R 1 900.00(ZAR) estimated $115.46 (USD)*

    View Report Add to Cart

    The South African Tobacco and Tobacco Products Industry 2019-07-05

    R 1 900.00(ZAR) estimated $115.46 (USD)*

    View Report Add to Cart

    The South African Tobacco and Tobacco Products Industry 2018-03-26

    R 1 900.00(ZAR) estimated $115.46 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 8
    4.1. Local 8
    4.1.1. Corporate Actions 10
    4.1.2. Regulations 11
    4.1.3. Enterprise Development and Social Economic Development 12
    4.2. Continental 12
    4.3. International 13
    5. INFLUENCING FACTORS 15
    5.1. Economic Environment 15
    5.2. Health Concerns 15
    5.3. Proposals to Ban the Growing of Tobacco 16
    5.4. Illicit Trafficking 16
    5.5. Regulations 17
    5.6. Technology 18
    5.7. Research and Development (R&D) 19
    5.8. Innovation 19
    5.9. Labour Resources 20
    5.10. Environmental Concerns 22
    6. COMPETITION 23
    7. SWOT ANALYSIS 24
    8. OUTLOOK 24
    9. INDUSTRY ASSOCIATIONS 25
    10. REFERENCES 25
    10.1. Publications, Podcasts and Youtube 25
    10.2. Websites 26
    COMPANY PROFILES 27
    AMALGAMATED TOBACCO MANUFACTURING (PTY) LTD 27
    BRITISH AMERICAN TOBACCO SOUTH AFRICA (PTY) LTD 29
    CARNILINX (PTY) LTD 32
    GOLD LEAF TOBACCO CORPORATION (PTY) LTD 34
    JT INTERNATIONAL SOUTH AFRICA (PTY) LTD 36
    LEONARD DINGLER (PTY) LTD 38
    OTP DISTRIBUTORS (PTY) LTD 40
    PHILIP MORRIS SOUTH AFRICA (PTY) LTD 42
    UNIVERSAL LEAF SOUTH AFRICA (PTY) LTD 44
    VAN ERKOMS TABAKKE (PTY) LTD 46

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