Tobacco in Ecuador
Euromonitor International's Tobacco in Ecuador 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: 74 | Publication date: Jul 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Cigarettes; Cigarettes including RYO; Cigars; Smoking tobacco
Executive summary
Tobacco sees a slowdown in retail sales growth in 2007
Retail value sales of tobacco in Ecuador continued to increase in 2007, but at a lower rate than earlier in the 2002-2007 review period. The consumer trend towards a healthier lifestyle is expanding, and many consumers are attempting to quit smoking to prevent future illness. In addition, more people are participating in team sports and jogging, both of which are made more difficult by smoking.
Excise tax set to increase considerably in 2008
The Ecuadorian government decided to increase the excise tax for cigarettes in 2008. The higher rates should have a negative impact on the market, as consumers’ budgets might be strained by the higher prices. Retail prices increased greatly – in some cases up to 100% – to accommodate the anticipated increase in tax. The change affected both black cigarettes, which are made with naturally-cured tobacco, and blond cigarettes, which are made from machine-generated ventilation. Both types now have an excise tax rate of 150%.
Multinationals continue to dominate Ecuadorian tobacco
Philip Morris Cos Inc through its affiliate, Tabacalera Andina SA (TANASA), and British American (South America) Ltd continued their leadership of Ecuadorian tobacco. The two multinational companies represent almost the entirety of the industry’s total retail volume sales. Outside of these two companies, there is a very small market of imported brands that are mainly sold through specialist stores.
Illicit trade volumes expected to increase in the 2007-2012 forecast period
As prices for tobacco products continue to rise, illicit trade products are expected to become increasingly important. The higher excise tax that takes effect at the end of 2007 will result in a spike in prices. For many consumers, the sudden jump in prices might induce them to buy illicit products at much lower cost. Government officials will need to increase their vigilance in order to ensure that sales of illicit trade products do not grow unchecked.
Higher taxes and health concerns will slow tobacco growth from 2007-2012
Tobacco will likely experience lower average annual volume growth in the 2007-2012 forecast period than during the 2002-2007 review period. The rising cost of tobacco products as well as the increasing inclination of consumers to adopt a healthier lifestyle will negatively affect sales. Moreover, tobacco products are expected to see further tax increases, despite the recent rise in the excise tax. As during the review period, cigarettes will continue to drive the sales performance of tobacco in Ecuador throughout the forecast period.
Table of contents
TOBACCO IN ECUADOR : MARKET INSIGHT
EXECUTIVE SUMMARY
Tobacco sees a slowdown in retail sales growth in 2007
Excise tax set to increase considerably in 2008
Multinationals continue to dominate Ecuadorian tobacco
Illicit trade volumes expected to increase in the 2007-2012 forecast period
Higher taxes and health concerns will slow tobacco growth from 2007-2012
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2002-2007
Table 2 Number of Smokers by Gender 2002-2007
Death by Cause
Legislation
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies: Blond Cigarettes
Table 4 Taxation and Duty Levies: Black Cigarettes
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 6 Deaths by Diseases of the Respiratory System 2002-2007
Table 7 Deaths from Heart Disease 2002-2007
Table 8 Deaths from Lung Cancer 2002-2007
Table 9 Illicit Trade Estimate 2002-2007
MARKET DATA
Table 10 Sales of Tobacco by Sector: Volume 2002-2007
Table 11 Sales of Tobacco by Sector: Value 2002-2007
Table 12 Sales of Tobacco by Sector: % Volume Growth 2002-2007
Table 13 Sales of Tobacco by Sector: % Value Growth 2002-2007
Table 14 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007
Table 15 Forecast Sales of Tobacco by Sector: Volume 2007-2012
Table 16 Forecast Sales of Tobacco by Sector: Value 2007-2012
Table 17 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012
Table 18 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012
DEFINITIONS
Summary 1 Research Sources
CIGARETTES
Headlines
Trends
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 2 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Competitive Landscape
New Product Developments
Prospects
Sector Data
Table 19 Sales of Cigarettes by Tar Level: Volume 2002-2007
Table 20 Sales of Cigarettes by Tar Level: Value 2002-2007
Table 21 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007
Table 22 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007
Table 23 Sales of Cigarettes by Price Band: %Volume Breakdown 2002-2007
Table 24 Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2002-2007
Table 25 Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2002-2007
Table 26 Sales of Cigarettes by Filter Vs Non-filter 2002-2007
Table 27 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2002-2007
Table 28 Sales of Cigarettes by Length 2002-2007
Table 29 Sales of Cigarettes by Regular/Slim 2006-2007
Table 30 Sales of Cigarettes by Pack Size 2002-2007
Table 31 Sales of Cigarettes by Pack Type 2002-2007
Table 32 Cigarettes Company Shares 2003-2007
Table 33 Cigarettes Brand Shares 2004-2007
Table 34 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012
Table 35 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012
Table 36 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
Table 37 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
Table 38 Forecast Sales of Cigarettes by Price Band: %Volume Breakdown 2007-2012
Table 39 Forecast Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2007-2012
Table 40 Forecast Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2007-2012
Table 41 Forecast Sales of Cigarettes by Filter Vs Non-filter 2007-2012
Table 42 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2007-2012
Table 43 Forecast Sales of Cigarettes by Length 2007-2012
Table 44 Forecast Sales of Cigarettes by Regular/Slim 2007-2012
Table 45 Forecast Sales of Cigarettes by Pack Size 2007-2012
Table 46 Forecast Sales of Cigarettes by Pack Type 2007-2012
CIGARS AND CIGARILLOS
Headlines
Trends
Competitive Landscape
New Product Developments
Prospects
Sector Data
Table 47 Sales of Cigars by Subsector: Volume 2002-2007
Table 48 Sales of Cigars by Subsector: Value 2002-2007
Table 49 Sales of Cigars by Subsector: % Volume Growth 2002-2007
Table 50 Sales of Cigars by Subsector: % Value Growth 2002-2007
Table 51 Company Shares of Cigars Exluding Cigarillos 2003-2007
Table 52 Brand Shares of Cigars Exluding Cigarillos 2004-2007
Table 53 Company Shares of Cigarillos 2003-2007
Table 54 Brand Shares of Cigarillos 2004-2007
Table 55 Forecast Sales of Cigars by Subsector: Volume 2007-2012
Table 56 Forecast Sales of Cigars by Subsector: Value 2007-2012
Table 57 Forecast Sales of Cigars by Subsector: % Volume Growth 2007-2012
Table 58 Forecast Sales of Cigars by Subsector: % Value Growth 2007-2012
SMOKING TOBACCO
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 59 Sales of Smoking Tobacco by Subsector: Volume 2002-2007
Table 60 Sales of Smoking Tobacco by Subsector: Value 2002-2007
Table 61 Sales of Smoking Tobacco by Subsector: % Volume Growth 2002-2007
Table 62 Sales of Smoking Tobacco by Subsector: % Value Growth 2002-2007
Table 63 Company Shares of Pipe Tobacco 2003-2007
Table 64 Brand Shares of Pipe Tobacco 2004-2007
Table 65 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012
Table 66 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012
Table 67 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012
Table 68 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012
BRITISH AMERICAN TOBACCO (SOUTH AMERICA) LTD
Strategic Direction
Key Facts
Summary 3 British American Tobacco (South America) Ltd: Key Facts
Company Background
Production BY FACTORY
Competitive Positioning
Summary 4 British American Tobacco (South America) Ltd: Competitive Position 2007
PROVEEDORA ECUATORIANA SA (PROESA)
Strategic Direction
Key Facts
Summary 5 PROESA: Key Facts
Company Background
Production BY FACTORY
Competitive Positioning
Summary 6 PROESA: Competitive Position 2007