Tobacco in Guatemala
Euromonitor International's Tobacco in Guatemala 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: 77 | Publication date: Jul 2009
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Executive summary
Tobacco sales continue to rise in 2008
Led by the cigarettes sector, the tobacco market in Guatemala maintained positive growth in 2008. Smoking prevalence among both men and women remained stable and manufacturers invested in new products to further segment the market, appealing to various and specific needs. Cigar and smoking tobacco performed well but still command a minimal share of market sales. A lack of tradition for such tobacco products hindered further growth in these two sectors. Manufacturers invested in the development of new products particularly in the low- and ultra-low tar cigarette categories, catering for the rising number of young adults reaching the legal smoking age.
Product variety and segmentation drive sales
In 2008 both Tabacalera Centroamericana and British American Tobacco Caribbean & Central America Co launched new products in an effort to further segment the market. Brands like Rubios XC and Payasos After Hours were aimed at low- and ultra-low tar cigarette smokers and were supported by aggressive marketing campaigns, including considerable investment in alternative media outlets like moving billboards and attractive point-of-sale displays. Recent innovative activity followed the trend started a few years back when menthol cigarettes started gaining popularity among young adults, especially women.
Cigarette duopoly continues to dominate
Both Tabacalera Centroamericana (Philip Morris International Inc) and British American Tobacco Caribbean & Central America Co (British American Tobacco Plc) continued to dominate the tobacco market in Guatemala. As in other parts of Latin America, these two companies dictate market behaviour and make it impossible for domestic manufacturers to compete with their high marketing budgets and aggressive sales strategies. Both companies have consolidated their production capacities, covering the entire Central American region from production plants in Guatemala and Honduras.
Traditional channels the key to success
Traditional channels like small independent grocers and street vendors were the key to success in 2008. Their efficient coverage of the entire country was their prime advantage. Supermarkets and forecourt retailers were important in the capital city and other urban areas. These two channels are known for their enforcement of legislation prohibiting the sale of cigarettes to underage consumers. Tobacconists and kiosks were important with regard to cigars and smoking tobacco, but these account for a small percentage of the market’s overall sales.
Increasing health awareness and new legislation will pose a challenge
Awareness of the harmful effects of smoking is increasing in Guatemala, especially among young adults, who are exposed to the international media via the internet. This, however, will not necessarily deter them from smoking, and manufacturers will continue to reinforce the attributes of their products. It is not expected that smoking prevalence will decline due to the popularity of the products among young adults and the fact that it is an addictive product and smoking cessation aids have only just begun to enter the country, mainly in the capital city. Ever increasing international restrictions will make consumers and the overall population conscious about the adverse health effects of smoking in general. Domestically, new legislation banning smoking in public places will also pose a challenge to companies seeking to co-exist with regulations banning cigarette consumption in specific places like restaurants, bars and discos. Although law enforcement in Guatemala generally lacks the financial and human resources to actually make a difference, manufacturers will have to explore new strategies to maintain sales growth and product demand.
Table of contents
TOBACCO IN GUATEMALA : MARKET INSIGHT
EXECUTIVE SUMMARY
Tobacco sales continue to rise in 2008
Product variety and segmentation drive sales
Cigarette duopoly continues to dominate
Traditional channels the key to success
Increasing health awareness and new legislation will pose a challenge
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
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 3 Taxation and Duty Levies
Table 4 Average Cigarette Pack Price Breakdown: Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 5 Trade Statistics – Cigarettes 2004-2008
MARKET INDICATORS
Table 6 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2003-2008
Table 8 Sales of Tobacco by Sector: Value 2003-2008
Table 9 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 10 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 11 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 12 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 13 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
CIGARETTES
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Summary 2 New Product Launches
Prospects
Sector Background
Summary 3 Cigarette Price Band Definitions
Sector Data
Table 15 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 16 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 17 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 18 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 19 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 20 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 21 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 22 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 23 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 24 Sales of Cigarettes by Length 2003-2008
Table 25 Sales of Cigarettes by Regular/Slim 2006-2008
Table 26 Sales of Cigarettes by Pack Size 2003-2008
Table 27 Sales of Cigarettes by Pack Type 2003-2008
Table 28 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 29 Cigarettes Company Shares 2004-2008
Table 30 Cigarettes Brand Shares 2005-2008
Table 31 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 36 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 37 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 39 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 40 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 41 Forecast Sales of Cigarettes by Length 2008-2013
Table 42 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 43 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 44 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS AND CIGARILLOS
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
Sector Data
Table 45 Sales of Cigars by Subsector: Volume 2003-2008
Table 46 Sales of Cigars by Subsector: Value 2003-2008
Table 47 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 48 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 49 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 50 Brand Shares of Cigars Excluding 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: Value 2008-2013
Table 54 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 55 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
Sector Data
Table 56 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 57 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 58 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 59 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 60 Company Shares of RYO Tobacco 2004-2008
Table 61 Brand Shares of RYO Tobacco 2005-2008
Table 62 Company Shares of Pipe Tobacco 2004-2008
Table 63 Brand Shares of Pipe Tobacco 2005-2008
Table 64 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 65 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 66 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 67 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 68 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013
BRITISH AMERICAN TOBACCO CARIBBEAN & CENTRAL AMERICA
Strategic Direction
Key Facts
Summary 4 British American Tobacco Caribbean & Central America: Key Facts
Company Background
Production
Competitive Positioning
Summary 5 British American Tobacco Caribbean & Central America: Competitive Position 2008
TABACALERA CENTROAMERICANA SA
Strategic Direction
Key Facts
Summary 6 Tabacalera Centroamericana SA: Key Facts
Company Background
Production
Competitive Positioning
Summary 7 Tabacalera Centroamericana SA: Competitive Position 2008
TABACOS & PUROS FINOS SA
Strategic Direction
Key Facts
Summary 8 Tabacos & Puros Finos SA: Key Facts
Company Background
Production
Competitive Positioning
Summary 9 Tabacos & Puros Finos SA: Competitive Position 2008