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Smokeless tobacco is a small category in Mexico where there are essentially two products available: Klondike distributed by Tabasa Import Export Ltd SA de CV and Kayak, distributed by Lieb International, both classified as loose US-style moist snuff, which is consumed mainly by men. During 2019, smokeless tobacco posted a fairly strong decline in volume sales due to a contraction in the consumer base.
In terms of advertising and labelling, smokeless tobacco falls under the same bans and regulations as cigarettes and other tobacco products. The only advantage of smokeless tobacco over other tobacco products is that it can be consumed in places where smoking is banned.
In 2019, new brands of smokeless tobacco were being sold through e-commerce retailers, whereas Kayak, one of the main brands, was found to be out of stock online. However, the only significant sales are generated through tobacco specialists and the dominant mixed retailers category.
In 2020, sales of smokeless tobacco, e-vapour products and heated tobacco are now expected to decline by 6% 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.
Despite the new ban on the import of heated tobacco, in 2020 Philip Morris International Inc began to promote demonstrations for its IQOS model and offer home delivery, taking advantage of the great number of consumers switching to e-commerce as they looked to limit going out. The channel is also more difficult for the health authorities to control, which may see further heated tobacco and e-vapour products appearing in Mexico before the government is able to clamp down more effectively.
As the economy begins to recover from the impact of COVID-19 and purchasing power is restored, sales are likely to begin normalising over 2021, with the fall in demand for moist snuff set to be steeper over the forecast period. Given the rise in health-awareness, intensified by the pandemic, more tobacco consumers will be seeking products suitable for use in private, often enclosed, space and/or which respect the personal space of others when the user is in a public area.
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Discover the latest market trends and uncover sources of future market growth for the Smokeless Tobacco and Vapour Products industry in Mexico with research from Euromonitor's team of in-country analysts.
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