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: 15 | 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 Growth 2003-2008
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
DEFINITIONS
Summary 1 Summary - Research Sources