Tobacco in Mexico
Euromonitor International's Tobacco in Mexico 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: 75 | Publication date: Feb 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
Mexican Tobacco Is Attractively High Growth
Tobacco in 2006 was characterised by a recovery in the sales of cigarettes in Mexico. This was mostly due to an increase in the smoking population, and the consumption base included women and teenagers. Cigars also recovered, boosted by younger consumers. There was a spread of the profile of the curious consumer looking for exotic products and appealing innovations. In addition, Mexico is neighbour to the largest cigars market in the world (USA), where consumers cannot legally obtain the most popular cigar brands in the world – Cuban cigars.
New Government: New Steps Towards Reducing Smoking
In Mexico, as elsewhere, there are increased healthcare costs associated with smoking-related illnesses. Mexico is a member of the WHO's Framework Convention on Tobacco Control, and has expired the agreement between tobacco companies and the former Mexican administration. The present government has promised to take stronger legal action based on the FCTC recommendations. Before reaching one month at the presidential charge, Calderón and the Congress ordered what was lingering from 2003 – a tax raise on tobacco products. This offers high expectations for anti-tobacco lobbying groups in Mexico. It also favours the prospects of having tougher anti-tobacco measures, backed by a more active Health Ministry.
2006: First Year of 3-Phase Tax Increase Implementation
Tobacco prices are not subject to any regulation in Mexico. However, the taxing of special production and services is the only instrument that the government has to control tobacco commerce in the country. At the end of 2006, the new government of Felipe Calderón announced its intention to increase taxes on tobacco production by 30% over the first year of its period, and by 10% over each of the following two years.
Duopoly's Reaction to Increase in Excise Tax on Cigarettes
The cigarettes duopoly in Mexico reacted to the increase in the special tax on cigarette production with an unpredictable strategy of minimising production costs. This was in order to not transfer in 2007 to final consumers, the 30% increase in excise tax on filtered and unfiltered cigarettes that was announced at the end of 2006. As a consequence, a curb in sales is not an anticipated result for 2007.
Authority's Empowerment to Curb Tobacco Consumption Relies on Committed Response from Society
Smoking is one of the most important public health problems in Mexico, and the government is fully aware of the necessity to reduce healthcare costs. However, the question is whether society is ready to respond to the observance, due to ad hoc rules. When any development of legislation takes places in Mexico over the forecast period, no immediate effect on market sizes will be noticeable. A change in a widespread public health problem demands a deep cultural change of perception from consumers, as well as increased awareness of the consequences derived from smoking. If such cultural changes do not support political policies, company strategies will always tolerate any obstacles in the way. With no real consciousness towards any obstacles, consumers will just decrease consumption, or shift to contraband cigarettes or cheaper brands, but no real diminution in tobacco consumption will be achieved.
Table of contents
TOBACCO IN MEXICO : MARKET INSIGHT
EXECUTIVE SUMMARY
Mexican Tobacco Is Attractively High Growth
New Government: New Steps Towards Reducing Smoking
2006: First Year of 3-Phase Tax Increase Implementation
Duopoly's Reaction to Increase in Excise Tax on Cigarettes
Authority's Empowerment to Curb Tobacco Consumption Relies on Committed Response from Society
OPERATING ENVIRONMENT
Smoking Population
Table 1 Smoking Prevalence in Population 2001-2006
Table 2 Number of Smokers by Gender 2001-2006
Death by Cause
Legislation
Tar
Health Warnings
Duty Paid Packet Marks
Advertising and Sponsorship
Smoking in Public Places
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies 2001-2006
Table 4 Average Cigarette Pack Price Breakdown: Brand Example
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes 2001-2006
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 6 Deaths from Heart Disease 2001-2006
Table 7 Deaths from Lung Cancer 2001-2006
Table 8 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 9 Sales of Tobacco by Sector: Volume 2001-2006
Table 10 Sales of Tobacco by Sector: Value 2001-2006
Table 11 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 12 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 13 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 14 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 15 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 16 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 17 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - MEXICO
BRITISH AMERICAN TOBACCO MEXICO SA DE CV - TOBACCO - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco Mexico SA de CV: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 3 British American Tobacco Mexico: Production Statistics by Factory 2005-2006
COMPETITIVE POSITIONING
Summary 4 British American Tobacco Mexico: Competitive Position 2006
PHILIP MORRIS COS INC - TOBACCO - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Philip Morris Cos Inc/CIGATAM: Key Facts
Summary 6 Philip Morris Cos Inc/CIGATAM: Operational Indicators 2005-2006
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 7 Philip Morris Cos Inc/CIGATAM: Competitive Position 2006
PUROS SANTA CLARA SA DE CV - TOBACCO - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Puros Santa Clara: Key Facts
Summary 9 Puros Santa Clara: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 10 Puros Santa Clara: Production Statistics by Factory
COMPETITIVE POSITIONING
Summary 11 Puros Santa Clara: Competitive Position 2006
TABACALERA ALBERTO TURRENT - TOBACCO - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Tabacalera Alberto Turrent: Key Facts
Summary 13 Tabacalera Alberto Turrent: Operational Indicators 2005-2007
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 14 Tabacalera Alberto Turrent: Production Statistics by Factory
COMPETITIVE POSITIONING
Summary 15 Tabacalera Alberto Turrent: Competitive Position 2006
CIGARETTES IN MEXICO
HEADLINES
TRENDS
Illicit Trade (Cigarettes)
Cigarettes: Price Bands
Cigarettes: Filter Splits
Table 18 Slims/superslims Penetration 2006
Cigarettes: Pack Splits
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 19 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 20 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 21 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 22 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 23 Sales of Cigarettes by Price Band: % Volume Breakdown 2001-2006
Table 24 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2001-2006
Table 25 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2001-2006
Table 26 Sales of Cigarettes by Filter vs Non-filter 2001-2006
Table 27 Sales of Filter Cigarettes by Carbon vs Non-carbon 2001-2006
Table 28 Sales of Cigarettes by Length 2001-2006
Table 29 Sales of Cigarettes by Pack Size 2001-2006
Table 30 Sales of Cigarettes by Pack Type 2001-2006
Table 31 Cigarettes Company Shares 2002-2006
Table 32 Cigarettes Brand Shares 2003-2006
Table 33 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 34 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 35 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 36 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 37 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 38 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 39 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 40 Forecast Sales of Cigarettes by Filter vs Non-filter 2006-2011
Table 41 Forecast Sales of Filter Cigarettes by Carbon vs Non-carbon 2006-2011
Table 42 Forecast Sales of Cigarettes by Length 2006-2011
Table 43 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 44 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 45 Sales of Cigars by Subsector: Volume 2001-2006
Table 46 Sales of Cigars by Subsector: Value 2001-2006
Table 47 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 48 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 49 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 50 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 51 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 52 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 53 Sales of Smoking Tobacco by Subsector: Volume 2001-2006
Table 54 Sales of Smoking Tobacco by Subsector: Value 2001-2006
Table 55 Sales of Smoking Tobacco by Subsector: % Volume Growth 2001-2006
Table 56 Sales of Smoking Tobacco by Subsector: % Value Growth 2001-2006
Table 57 Forecast Sales of Smoking Tobacco by Subsector: Volume 2006-2011
Table 58 Forecast Sales of Smoking Tobacco by Subsector: Value 2006-2011
Table 59 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2006-2011
Table 60 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2006-2011