Tobacco in Bolivia
Euromonitor International's Tobacco in Bolivia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data.
Tables: 78 | Publication date: Jul 2009
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Executive summary
Illicit trade intensifies competition
Bolivia’s tobacco industry is seeing intensified competition as illicit trade gains additional share in the cigarettes sector. According to various sources, contraband has increased as the government has failed to carry out customs and border controls. The Instituto Boliviano de Comercio Exterior (IBCE - Bolivian Foreign Trade Institute) reports that illicit imports have increased by more than 62% over the last four years. Official data compiled by the Instituto Nacional de Estadísticas (INE - National Statistics Institute) shows that in 2008 there were considerably lower legal imports of cigars and other types of tobacco. However, several cigar and pipe tobacco brands continue to be available in specialist tobacco stores. It is estimated that the volume of illicit cigarette sales is set to increase by 17% over the 2008-2013 period.
Young people and women the main consumer segments
According to studies conducted by the Centro Latinoamericano de Investigación Científica (CELIN – Latin American Centre for Scientific Studies), there has been an increase in smoking prevalence among young people and particularly Bolivia’s female population. The presence of additional women in the workforce, social pressures and aggressive point-of-sale promotions have all contributed to a rise in female smoking. As a result, cigarette manufacturers and importers are increasing their ranges of light and flavoured products to target this consumer segment.
Tobacco reps discuss compliance with regard to mandatory warning regulations
In late 2008 Bolivian government officials and representatives from legal tobacco companies began preliminary discussions to agree on further adjustments to cigarette packaging and labelling. Article 5 requires that all tobacco products must include images, photographs and health warnings pertaining to the dangers of tobacco consumption. This article is to take effect no later than December 2009.
Tobacco consumption continues on an upward trajectory
Bolivians continue to consume large quantities of tobacco, suggesting that this upward trajectory will continue. This is confirmed by studies conducted by CELIN, which show that tobacco consumption in major cities such as Santa Cruz, Montero, La Paz, El Alto, Cochabamba, Potosí and Quillacollo are likely to increase. Despite Bolivian regulation prohibitions issued in 2007, thousands of street vendors and hundreds of convenience stores continue to sell individual cigarettes and packs to citizens, paying little attention to their age. According to drug prevention experts, consumption will increase in the absence of weak control and lack of enforcement.
Local suppliers struggle to maintain low cigarette prices
Legal tobacco companies are redoubling their efforts to maintain low prices so as to avoid further illegal competition coming from neighbouring countries (mainly Paraguay, Brazil and Chile.) The INE reports that cigarette prices rose more slowly than the country’s annual inflation of 12%, as measured by the consumer price index. Other studies, including the Economic Commission for Latin America and the Caribbean (ECLAC), estimate that inflation has surpassed 17%. In 2008 manufacturer Cía Industrial de Tabacos SA (CITSA) and importer Bis Overseas Bolivia ran a larger number of promotions, striving to offer consumers the best value. Additional and a more aggressive focus on distribution, logistics and packaging as well as credit to retailers was also carried out to maintain and improve legal sales.
Table of contents
TOBACCO IN BOLIVIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Illicit trade intensifies competition
Young people and women the main consumer segments
Tobacco reps discuss compliance with regard to mandatory warning regulations
Tobacco consumption continues on an upward trajectory
Local suppliers struggle to maintain low cigarette prices
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
Table 3 Death by Cause 2007
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/ FCTC ratification
Country-specific legislation:
Minimum legal smoking age
Tar levels
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
TAXATION AND DUTY LEVIES
Table 4 Average Cigarette Pack Price Breakdown: Brand Examples
Table 5 Taxation and Duty Levies
PRODUCTION/IMPORTS/EXPORTS
Table 6 Trade Statistics – Cigarettes 2003-2008
MARKET INDICATORS
Table 7 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 8 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 9 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 10 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 11 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 12 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
Table 13 Sales of Tobacco by Sector: Volume 2003-2008
Table 14 Sales of Tobacco by Sector: Value 2003-2008
Table 15 Sales of Tobacco by Sector: % Volume Growth 2003-2008
DEFINITIONS
Summary 1 Summary - Research Sources
LOCAL COMPANY PROFILES - BOLIVIA
CíA INDUSTRIAL DE TABACOS SA - TOBACCO - BOLIVIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Summary - Cía Industrial de Tabacos SA (CITSA): Key Facts
Summary 3 Summary - Cía Industrial de Tabacos SA (CITSA): Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 4 Summary - Cía Industrial de Tabacos SA (CITSA): Production Statistics 2008
COMPETITIVE POSITIONING
Summary 5 Summary - Cía Industrial de Tabacos SA (CITSA): Competitive Position 2008
CIGARETTES IN BOLIVIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 6 Summary - New Product Launches
PROSPECTS
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 7 Summary - Cigarette Price Band Definitions
Cigarettes: Menthol/standard
Cigarettes: Filter/non-filter
Cigarettes: Carbon/standard filter
Cigarettes: Filter length
Cigarettes: Slims/superslims vs regular
Cigarettes: Pack size
Cigarettes: Pack type
SECTOR DATA
Table 16 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 17 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 18 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 19 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 20 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 21 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 22 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 23 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 24 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 25 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 26 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 27 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 28 Sales of Cigarettes by Length 2003-2008
Table 29 Sales of Cigarettes by Regular/Slim 2006-2008
Table 30 Sales of Cigarettes by Pack Size 2003-2008
Table 31 Sales of Cigarettes by Pack Type 2003-2008
Table 32 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 33 Cigarettes Company Shares 2004-2008
Table 34 Cigarettes Brand Shares 2005-2008
Table 35 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 36 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 37 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 38 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 39 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 40 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 41 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 42 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 43 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 44 Forecast Sales of Cigarettes by Length 2008-2013
Table 45 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS IN BOLIVIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 46 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 47 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 48 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 49 Company Shares of Cigarillos 2004-2008
Table 50 Brand Shares of Cigarillos 2005-2008
Table 51 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 52 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 53 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 54 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 55 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 56 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
Table 57 Sales of Cigars by Subsector: Volume 2003-2008
Table 58 Sales of Cigars by Subsector: Value 2003-2008
Table 59 Sales of Cigars by Subsector: Value 2003-2008
Table 60 Sales of Cigars by Subsector: % Volume Growth 2003-2008
SMOKING TOBACCO IN BOLIVIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 61 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 62 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 63 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 64 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 65 Company Shares of Pipe Tobacco 2004-2008
Table 66 Brand Shares of Pipe Tobacco 2005-2008
Table 67 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 68 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 69 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 71 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013