Executive Summary

Jul 2019
PROSPECTS
Cigarette manufacturers focus on adding value amidst declining volume sales

Cigarette volume sales continued to contract in 2018 and are expected to continue doing so over the forecast period. Growing health awareness backed by government campaigns and stronger proposed anti-tobacco legislation are encouraging consumers to migrate towards alternatives such as fine cut tobacco or e-vapour products, with many perceiving these to be healthier.

Illicit trade continues growing due to entry of new brands from Bolivia and Paraguay

Illicit trade in cigarettes continued to be problematic for the cigarettes category in 2018 as illicit volume sales recorded dynamic growth to account for nearly one third of overall retail volume sales. This was despite stronger law enforcement, as police operations lowered the volumes of illicit cigarettes available, which subsequently led to a rise in unit prices.

Plain packaging likely due to anticipated changes in the law

At the beginning of 2018, the Commission of Health of the Chamber of Deputies voted in favour of the implementation of generic packaging for cigarettes, in line with that promoted by the World Health Organization (WHO). It is now expected that at its next session the Commission will forward the vote that will modify the law on tobacco.

COMPETITIVE LANDSCAPE
Dominant British American Tobacco speaks out against dangers of plain packaging

The competitive landscape in cigarettes in Chile remained largely unchanged throughout the review period. British American Tobacco Chile maintained a virtual monopoly, with Philip Morris Chile Comercializadora accounting for the remaining small share of retail volume sales.

Philip Morris remains only visible competitor to British American Tobacco

Philip Morris Chile Comercializadora remained the only visible competitor to British American Tobacco in cigarettes in Chile in 2018. The company’s product portfolio is structured around three brands, namely L&M, Marlboro and Philip Morris, each with a distinct price positioning.

Illicit trade represents a significant problem for industry players

Illegal cigarettes are a major problem for the category and the profit levels of legitimate players within the industry. Such illegal sales continued to grow in 2018, and at a higher rate than the legitimate cigarettes category.

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Cigarettes in Chile

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Overview

Discover the latest market trends and uncover sources of future market growth for the Cigarettes industry in Chile with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Cigarettes industry in Chile, our research will save you time and money while empowering you to make informed, profitable decisions.

The Cigarettes in Chile market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Production, imports, and exports of finished cigarettes
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Cigarettes in Chile?
  • What are the major brands in Chile?
  • What is the legislative environment like in Chile?
  • What are the rates of cigarette taxation in Chile?
  • Do premium, mid-price or economy cigarettes dominate in Chile?
  • What is the rate of illicit trade in Chile?
  • How many smokers are there in the country?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Tobacco market research database.

Cigarettes in Chile - Category analysis

HEADLINES

PROSPECTS

Cigarette manufacturers focus on adding value amidst declining volume sales
Illicit trade continues growing due to entry of new brands from Bolivia and Paraguay
Plain packaging likely due to anticipated changes in the law

COMPETITIVE LANDSCAPE

Dominant British American Tobacco speaks out against dangers of plain packaging
Philip Morris remains only visible competitor to British American Tobacco
Illicit trade represents a significant problem for industry players

TAXATION AND PRICING

Taxation rates
Summary 1 Taxation and Duty Levies 2013-2018
Average cigarette pack price breakdown
Summary 2 Average Cigarette Pack Price Breakdown: Brand Examples

CATEGORY DATA

Table 1 Sales of Cigarettes: Volume 2013-2018
Table 2 Sales of Cigarettes by Category: Value 2013-2018
Table 3 Sales of Cigarettes: % Volume Growth 2013-2018
Table 4 Sales of Cigarettes by Category: % Value Growth 2013-2018
Table 5 Sales of Cigarettes by Blend: % Volume 2013-2018
Table 6 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2013-2018
Table 7 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
Table 8 Sales of Cigarettes by Pack Size: % Volume 2013-2018
Table 9 Sales of Cigarettes by Price Band: % Volume 2013-2018
Table 10 NBO Company Shares of Cigarettes: % Volume 2014-2018
Table 11 LBN Brand Shares of Cigarettes: % Volume 2015-2018
Table 12 Sales of Cigarettes by Distribution Format: % Volume 2013-2018
Table 13 Illicit Trade Estimate of Cigarettes: Volume 2013-2018
Table 14 Forecast Sales of Cigarettes: Volume 2018-2023
Table 15 Forecast Sales of Cigarettes by Category: Value 2018-2023
Table 16 Forecast Sales of Cigarettes: % Volume Growth 2018-2023
Table 17 Forecast Sales of Cigarettes by Category: % Value Growth 2018-2023
Table 18 Forecast Sales of Cigarettes by Blend: % Volume 2018-2023
Table 19 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2018-2023
Table 20 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2018-2023
Table 21 Forecast Sales of Cigarettes by Pack Size: % Volume 2018-2023
Table 22 Forecast Sales of Cigarettes by Price Band: % Volume 2018-2023

Tobacco in Chile - Industry Overview

EXECUTIVE SUMMARY

Ongoing volume contraction in cigarettes and temporary slowdown in illicit trade
Strong gains for e-vapour products though category remains niche
Significant variation in share consolidation between tobacco categories
Newsagent-tobacconists/kiosks popular due to widespread presence
Cigarette volume sales set to contract as consumers embrace more affordable alternatives

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 3 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Advertising and sponsorship
Advertising through media (television, radio, billboards, consumer press, trade press, cinema, etc)
Advertising through retail point-of-sale
Sponsorship of sporting/music events
Distribution of tobacco-branded gifts (eg cigarette-branded lighters, pens, etc)
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Reduced harm
Vapour products

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 23 Number of Adult Smokers by Gender 2013-2018

MARKET DATA

Table 24 Sales of Tobacco by Category: Volume 2013-2018
Table 25 Sales of Tobacco by Category: Value 2013-2018
Table 26 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 27 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 28 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 29 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 30 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 31 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

SOURCES

Summary 4 Research Sources