Argentina’s economy recovered more quickly than expected after experiencing a strong downfall due to the COVID-19 crisis, during which the government imposed a strict lockdown on all on-trade establishments in 2020, and mid-2021. Nonetheless, the economy remained below pre-pandemic levels, as it was partly affected by a new wave of COVID-19 in the second quarter of 2021.
The decline in cigarettes volume sales in 2021 was associated with the prevailing economic instability, which undermined the purchasing power of middle- and low-income socioeconomic groups. As a result, some smokers turned to the illicit market, and many traded down, either from premium to mid-priced brands, or from mid-priced brands to economy ones.
In 2021, local tobacco companies continued to gain market share. Tabacalera Sarandi was prominent amongst the successful local companies with its flagship brand, Red Point, as it overtook Nobleza Piccardo SAIC y F (British American Tobacco) to become the second largest player in volume terms during the year.
E-commerce sales continued to grow in 2021, although once the national COVID-19 lockdown was lifted, consumers switched their daily purchase of cigarettes to newsagent-tobacconists/kiosks. Moreover, as Massalin Particulares SA was the only company to sell its portfolio via the internet, e-commerce grew at a lower speed than expected in 2021.
In general, tobacco sales are forecast to decline in Argentina over the forecast period due to a variety of factors. The unstable economic situation will have a major impact over the short term, while the longer term issue of rising consumer health consciousness, a trend bolstered by the experiences of the COVID-19 crisis, will continue to drive down smoking prevalence.
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Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.See All of Our Definitions
This report originates from Passport, our Tobacco research and analysis database.
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