The Argentine economy faced significant challenges in 2023, entering a recession with a GDP contraction and a notable decline in December compared to December 2022. Inflation surged, severely impacting the tobacco industry.
The tobacco industry struggled against soaring inflation and reduced purchasing power. Cigarette consumption saw a moderate decline as some consumers switched to fine cut tobacco due to its value-priced positioning and variety of brands.
In 2023, the tobacco industry saw significant downtrading, with consumers shifting from global brands to local low-cost brands due to economic hardships. Local producers benefited from a legal action that circumvented specific taxes on cigarettes, allowing them to compete on price with multinationals like Philip Morris (Massalin Particulares) and British American Tobacco (Nobleza Piccardo).
The challenging economic situation led to increased sales through newsagents, tobacconists, and kiosks, which are the main channels for cigarettes and fine cut tobacco. Consumers returned to convenience stores and forecourt retailers post-pandemic, while small independent local grocers remained crucial for tobacco distribution.
President Javier Milei, elected in December 2023, implemented drastic economic measures, including devaluing the peso, cutting public jobs, and reducing government size. His administration's fiscal adjustments are expected to stabilise the economy, with a projected GDP growth of 2.
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Understand the latest market trends and future growth opportunities for the Tobacco industry in Argentina 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.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
If you're in the Tobacco industry in Argentina, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Tobacco
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 DefinitionsThis report originates from Passport, our Tobacco research and analysis database.
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