Competitive Landscape
Philip Morris Adapts Portfolio to Retain Dominance as Value Formats Surge
Cigarettes in Mexico is highly concentrated market, with Philip Morris Productos y Servicios S de RL de CV and British American Tobacco México SA de CV accounting for the overwhelming majority of volume. In 2025, Philip Morris strengthened its lead, with its share rising from 58% in 2024 to 60% in 2025, while British American Tobacco's share declined from 37% to 35%.
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Overview:
Understand the latest market trends and future growth opportunities for the Cigarettes industry in Mexico with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Cigarettes industry in Mexico, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Cigarettes in Mexico report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Cigarettes in Mexico?
- Which are the leading brands in Cigarettes in Mexico?
- How are products distributed in Cigarettes in Mexico?
- Which category is the most heavily taxed in Mexico?
- How is the operating environment for Cigarettes changing?
- What are the current legislative restrictions applicable to the sale of Cigarettes products in Mexico?
- How has COVID-19 impacted demand?
- How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
- Where is future growth expected to be most dynamic?
Cigarettes in Mexico - Category analysis
Key Data Insights
Cigarettes Summary
Illicit Alternatives Gain Ground as Tax-Driven Price Surge Erodes Legal Sales
Channel Fragmentation Emerges as Smokers Seek Alternatives
Ieps Tax Hike Triggers Unprecedented Price Gap and Fuels Downtrading
Illicit Operators to Expand as Affordability Declines for Duty-Paid Products
Heated Tobacco and Nicotine Pouches to Fragment Usage among Urban Adults
Organised Traffickers and Regulatory Shifts to Reshape Business Strategies
Philip Morris Adapts Portfolio to Retain Dominance as Value Formats Surge
Oxxo and 7-Eleven Expand Reach to Compete with Small Local Grocers
Legal Restrictions Keep Cigarettes Out of Online Retail Entirely
Taxation Rates
Average Cigarette Pack Price Breakdown
Philip Morris and Bat Adapt Portfolios as Illicit Brands Gain Share
Iqos and Nicotine Pouches Fragment Traditional Consumption Patterns
Nicotine in Mexico - Industry Overview
2025 Developments
Key Data Insights
Ieps Tax Increase Prompts Downtrading as Smokers Seek Affordability
Heated Tobacco Gains Traction as Smokers Explore New Options
Encodat Findings Drive Long-Term Decline in Smoking Rates
Tax-Driven Downtrading to Steer Smokers toward Value Options
Enforcement on E-Vapour to Limit Formal Access but Fuel Informality
Heated Tobacco and Pouches to Gain Traction as Alternatives Diversify
Pmi Accelerates Growth with Multi-Format Strategy as Bat Loses Ground
Small Local Grocers Maintain Dominance as Convenience Stores Expand Reach
Regulatory Barriers Eliminate Online Nicotine Sales and Limit Channel Innovation
Consumer Demand and Portfolio Diversification Fuel Product Development
Pmi and Bat Advance Their Positions through Targeted Product Launches
Portfolio Breadth and Channel Capability Define Competitive Advantage
Legislation
Minimum Legal Smoking Age
Smoking Prevalence
Plain Packaging
Advertising and Sponsorship
Point-Of-Sale Display Bans
Smoking in Public Places
Flavoured Tobacco Product Ban
Vapour Products
Production/Imports/Exports
Country Reports Disclaimer
The following categories and subcategories are included:
Cigarettes
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- Fine Cut Cigarettes
Cigarettes
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 definitionsWhy 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 report originates from Passport, our Cigarettes research and analysis database.
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