The decline in cigarettes volume sales seen in Argentina in 2021 was largely attributable to the economic instability in the country, which caused weaker purchasing power amongst middle- and low-income socioeconomic groups. As a result, some smokers turned to the illicit market, and a vast majority traded down from premium to mid-priced brands, and from mid-priced to economy brands.
New product development activity was mostly driven by global players, such as by Massalin Particulares SA (Philip Morris) and Nobleza Piccardo SAIC y F (British American Tobacco), as they looked to use innovation as a competitive advantage to stop the advance of b-brands. Innovation is mostly limited to new brand extensions based on flavoured capsule cigarettes, technology that local players cannot afford as they cannot pay the high cost of purchasing filters with built-in capsules since it would leave them needing to pass on very high prices to their customers.
Massalin Particulares SA introduced Marlboro Vista Forest Fusion and Summer Fusion double capsule cigarettes in November 2021. Forest Fusion is available in mint and forest fruits, while the latter is presented in menthol and summer fruits.
The cigarettes category is long-standing and mature in Argentina. Consumption is expected to fall over the forecast period, with smoking prevalence declining because of rising consumer health awareness, as well tighter regulations on smoking, which will cause an increase in tax pressure in the forecast period.
As long as the current economic instability persists over the mid-term, the economy segment is forecast to gain additional market share driven by local players, such as Tabacalera Sarandi SA, Espert SA, and Bronway Technology, making gains against global companies. These companies are set to benefit from a successful legal action by which they have managed to circumvent part of the specific tax on cigarettes, which allows them to compete with multinationals in terms of price.
Flavoured cigarettes are projected to see continued expansion over the forecast period as players continue to aim launches at young adults of legal smoking age. Indeed, there was significant new product development activity in flavoured cigarettes in 2021.
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Understand the latest market trends and future growth opportunities for the Cigarettes industry in Argentina with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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RETAIL SALES OF DUTY PAID CIGARETTES The definition of cigarettes for the purposes of this study is duty-paid, machine manufactured white-stick products. This does not exclude brands of cigarettes that do not use white paper but it is designed to exclude the volume of non-machine manufactured products such as bidis/beedis (India) and papirosy (Russia), and other smoking products made with tobacco but that either do not resemble cigarettes as recognised in the US or Europe, or those that are not machine manufactured. The exclusion of these products is intended to give a more accurate picture of the "true" market for cigarettes and cigars which has been distorted in official statistics and published reports because of the inclusion of hybrid products. NB Please note that due to its central importance and integration into the industry mainstream, Indonesia’s market data does include hand-rolled kreteks DUTY-FREE sales are excluded from retail sales, as are herbal cigarettes. ILLICIT TRADE CIGARETTES Not included in retail sales, but split out separately in volume terms only. Defined as non-duty paid cigarettes (includes smuggled & counterfeit/fake products combined). Legitimate cross-border sales are considered duty-paid. Sales arising from a foreign national purchasing cheaper cigarettes in bulk in a neighbouring country for personal use and exported back are attributed to the country where the purchase is made (e.g. bulk cigarette sales by British nationals in France are attributed to France).See All of Our Definitions
This report originates from Passport, our Cigarettes research and analysis database.
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