Tobacco in Venezuela
Euromonitor International's Tobacco in Venezuela 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: 68 | 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
Comprehensive regulations on tobacco advertising and sales, and anti-smoking campaigns introduced after FCTC ratification
As a consequence of the FCTC guidelines, the Ministry of Health introduced a new set of regulations which significantly restricted the way tobacco was marketed in Venezuela. These measures, already in effect in 2006, eliminated tobacco advertising in most forms. On top of these restrictions on advertising and sales, authorities strengthened anti-smoking campaigns based on health considerations through using more of the available space on packs of tobacco products and at points of sale. The lack of any meaningful opportunity to advertise tobacco products, as well as increasing anti-smoking campaigns will have a negative effect on the future growth of tobacco in Venezuela.
Venezuelan tobacco market very much influenced by the overall economy
For a long time, the Venezuelan economy has been significantly influenced by the ups and downs of the major industry in the country; oil. This strong dependence on one major source of foreign income has periodically contributed to contrasting periods of severe macroeconomic depression and exuberant expansion. The years 2005, and especially 2006, were examples of the latter. During 2006 oil revenue continued to flow into the country in an unprecedented manner. In addition, however, because of higher government expenditure during the presidential election in 2006, there was wave of liquidity which greatly contributed to a major increase in consumption in most markets, including tobacco. The wealthy atmosphere which characterised most of 2006 translated into big business for the tobacco industry. In the years to come, when oil prices are expected to go down and the government is likely to implement measures to compensate for the lost revenue, tobacco sales are likely to be under pressure as smoking becomes relatively more expensive.
Venezuelan smokers will not give up their habit easily
Despite stronger regulations on tobacco advertising and sales, and increasing anti-smoking campaigns, the Venezuelan smoking population shows a peculiar addictive and resilient nature. Tobacco products are still widely available for purchase, and banning places to smoke is still far from being a major deterrent to smoking. Many young people are starting to smoke, as it is still fashionable and socially accepted. Regular adult smokers do not seem to be significantly affected by anti-smoking campaigns, and continue to be loyal to their popular major brands. Euromonitor International trade sources confirm that it will only be when smoking in public places becomes a major restriction that the industry may experience a lack of interest by consumers in continuing smoking.
Cigars and cigarillos becoming increasingly popular in Venezuela
Favourable economic conditions, the excellent quality of Venezuelan tobacco and the perception of being healthier than cigarettes continue to increase acceptance for cigars and cigarillos. Business visitors are becoming major promoters of cigars and non-cigarette tobacco products by purchasing not only the major Cuban and international brands which are widely available, but also locally-produced brands which are now more internationally recognised for their quality and competitive prices. A growing increase in demand for these products is expected during the forecast period, especially among discriminating consumers who demand more exclusive and pricier brands.
A more restrictive competitive landscape presents opportunities for the most innovative companies to maintain and expand their business
Tobacco companies will be competing in a highly regulated and controlled environment in the forecast period. None the less, this increasingly restrictive landscape still presents opportunities to maintain and expand tobacco-related business. The tobacco industry is the second in Venezuela in terms of tax revenue for the country. The increasingly recognised quality of Venezuelan tobacco, and the immense social needs of Venezuela, in addition to the government interest in dedicating resources and efforts to alleviate poverty, may set the stage for innovative ideas. Tobacco companies which clearly identify the pressing needs of the country may use the export, employment and social involvement potential (or capability) of the market to fully participate in win-win schemes with the government, which may prolong or even expand the dynamic of the tobacco market.
Table of contents
TOBACCO IN VENEZUELA : MARKET INSIGHT
EXECUTIVE SUMMARY
Comprehensive regulations on tobacco advertising and sales, and anti-smoking campaigns introduced after FCTC ratification
Venezuelan tobacco market very much influenced by the overall economy
Venezuelan smokers will not give up their habit easily
Cigars and cigarillos becoming increasingly popular in Venezuela
A more restrictive competitive landscape presents opportunities for the most innovative companies to maintain and expand their business
OPERATING ENVIRONMENT
Smoking Population
Table 1 Smoking Prevalence in Population 2001-2006
Table 2 Number of Smokers by Gender 2001-2006
Death by Cause
Table 3 Death by Cause 1998-2005
Legislation
Tar
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 4 Taxation and Duty Levies
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes 2001-2006
Table 6 Trade Statistics – Raw Tobacco 2001-2005
The Role and Effect of Cannabis/Marijuana
Chewing Tobacco Appeals To School Age Children
MARKET INDICATORS
Table 7 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 8 Sales of Tobacco by Sector: Volume 2001-2006
Table 9 Sales of Tobacco by Sector: Value 2001-2006
Table 10 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 11 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 12 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 13 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 14 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 15 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 16 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - VENEZUELA
CA TABACALERA NACIONAL - TOBACCO - VENEZUELA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 CA Tabacalera Nacional (CATANA): Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 3 CA Tabacalera Nacional (CATANA): Competitive Position 2006
CIGARRERA BIGOTT SUCESORES SA - TOBACCO - VENEZUELA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Cigarrera Bigott Sucesores SA: Key Facts
Summary 5 Cigarrera Bigott Sucesores SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 6 Cigarrera Bigott Sucesores SA: Competitive Position 2006
FABRICA DE TABACOS BERMUDEZ CA - TOBACCO - VENEZUELA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Fábrica de Tabacos Bermúdez CA: Key Facts
Summary 8 Fábrica de Tabacos Bermúdez CA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
JUAN FCO CABRERA E HIJO SUCR CA - TOBACCO - VENEZUELA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Juan Francisco Cabrera e Hijo Sucesor, CA: Key Facts
Summary 10 Juan Francisco Cabrera e Hijo Sucesor, CA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
CIGARETTES IN VENEZUELA
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Cigarettes: Filter Splits
Cigarettes: Pack Splits
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 17 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 18 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 19 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 20 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 21 Sales of Cigarettes by Price Band: % Volume Breakdown 2001-2006
Table 22 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2001-2006
Table 23 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2001-2006
Table 24 Sales of Cigarettes by Filter Vs Non-filter 2001-2006
Table 25 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2001-2006
Table 26 Sales of Cigarettes by Length 2001-2006
Table 27 Sales of Cigarettes by Pack Size 2001-2006
Table 28 Sales of Cigarettes by Pack Type 2001-2006
Table 29 Cigarettes Company Shares 2002-2006
Table 30 Cigarettes Brand Shares 2003-2006
Table 31 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 32 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 33 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 34 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 35 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 36 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 37 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 38 Forecast Sales of Cigarettes by Filter Vs Non-filter 2006-2011
Table 39 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2006-2011
Table 40 Forecast Sales of Cigarettes by Length 2006-2011
Table 41 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 42 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN VENEZUELA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Sales of Cigars by Subsector: Volume 2001-2006
Table 44 Sales of Cigars by Subsector: Value 2001-2006
Table 45 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 46 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 47 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 48 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 49 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 50 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO IN VENEZUELA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 51 Sales of Smoking Tobacco by Subsector: Volume 2001-2006
Table 52 Sales of Smoking Tobacco by Subsector: Value 2001-2006
Table 53 Sales of Smoking Tobacco by Subsector: % Volume Growth 2001-2006
Table 54 Sales of Smoking Tobacco by Subsector: % Value Growth 2001-2006
Table 55 Forecast Sales of Smoking Tobacco by Subsector: Volume 2006-2011
Table 56 Forecast Sales of Smoking Tobacco by Subsector: Value 2006-2011
Table 57 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2006-2011
Table 58 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2006-2011