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While still accounting for the least sales overall, mid-price brands gained a percentage point in volume share in 2019 due to increases in prices. Although smoking prevalence is marginally falling year-on-year, the number of people who smoke is nevertheless climbing owing to population growth.
The cigarettes category in Mexico is consolidated between international companies Philip Morris Productos y Servicios S de RL de CV and British American Tobacco México SA de CV. Japan Tobacco International Mexico S de RL de CV is also present in the country through the Camel and Winston brands, but has a much lower share.
In 2019, no new regulations were imposed on cigarettes, although the sum of regulations in force to date include public smoking bans, mandatory graphic warning labels and advertising restrictions, all of which are having an impact on reducing smoking prevalence. The special tax added to cigarettes as a measure to discourage consumption has a limited effect, given the ease at which consumers can buy single sticks for a few pesos from numerous points of sale.
In 2020, sales of cigarettes are now expected to grow by 7% in constant 2019 value terms, in light of the impact of COVID-19. This compares with a 1% rise in sales forecast in Euromonitor International’s 2019 edition of tobacco.
Legal sales of cigarettes are predicted to return to a milder level of volume decline in 2021 as purchasing power recovers and the population and therefore number of smokers in the market continues to grow.
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Overview
Discover the latest market trends and uncover sources of future market growth for the Cigarettes industry in Mexico 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 Mexico, our research will save you time and money while empowering you to make informed, profitable decisions.
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This industry report originates from Passport, our Tobacco market research database.
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.