Fine cut tobacco continued to perform well in 2018 with expectations of ongoing success over the forecast period due to rising demand. Although the category remained much smaller than cigarettes, rising sales are encouraging some manufacturers to focus on a few large mass brands.
Cigars and cigarillos continued to experience growth driven largely by cigarillos. This is because Chilean smokers seek sophisticated flavours and alternatives, a trend that is being boosted by rising disposable incomes.
Retail stores that sell fine cut tobacco also sell cigarillos as well as smokeless tobacco, providing a wide mix of tobacco products and alternatives to cigarettes. It is expected that number of tobacco specialists will increase during the forecast period as more people will want to experiment with alternatives to cigarettes, such as fine cut tobacco.
While smoking tobacco is characterised by the presence of many brands, it is increasingly concentrated. The two leading players, Andes Tabacos and Soc Comercial M'ontecristo, account for the vast majority of sales, a trend set to continue over the forecast period.
Cigars, cigarillos and smoking tobacco are traditionally sold via store-based retailers in Chile. Newsagent-tobacconists/kiosks account for the vast majority of cigars and cigarillos sales, while tobacco specialists dominate sales of smoking tobacco.
One of the reasons for the high growth of fine cut tobacco in 2018 is the widening range of flavours available, with cherry and brandy flavours proving particularly popular. Consumers of this category are increasingly embracing flavoured fine cut tobacco as they are striving to find new smoking experiences.
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Discover the latest market trends and uncover sources of future market growth for the Cigars, Cigarillos and Smoking Tobacco industry in Chile with research from Euromonitor's team of in-country analysts.
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