Cigars has always been a niche category in Chile, and despite the important number of smokers in the country and the increasing income levels of the general population, these products have never been very popular or easy to find. 2022 saw cigar volumes decrease after very good growth experienced in 2021, and it is expected that this decreasing trend will continue during the forecast period, in the form of slight but steady declines.
As a country with a relatively high cigarette smoking rate, smoking tobacco (fine cut tobacco in particular) has found a prolific audience over recent years, especially amongst current smokers, who perceive RYO sticks as healthier than regular cigarettes, and think they are a good way to reduce their tobacco intake, because of the work and time that it takes to roll a cigarette. However, local and global authorities deny RYO cigarettes are indeed healthier, and seeing the constant increase in the use of RYO cigarettes by Chileans in 2022, the country’s health authorities have decided to increase advertising regulation for smoking tobacco products.
In a category composed mostly of niche products, fine cut tobacco stands out as the most widely demanded product. And, regardless of an increase in advertising regulations, which it is believed could cause a reduction in growth rates, fine cut tobacco will continue to be the main driver of sales in smoking tobacco, accounting for 90% of volume sales.
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Understand the latest market trends and future growth opportunities for the Cigars, Cigarillos and Smoking Tobacco industry in Chile with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Cigars, Cigarillos and Smoking Tobacco
This report originates from Passport, our Cigars, Cigarillos and Smoking Tobacco research and analysis database.
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