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Country Report

Tobacco in

Tobacco in Chile

60 pages, Aug 2017

US$2,100

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Executive Summary

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Trading up offsets the impact of the decline in cigarette volumes in 2016

In 2016, retail volume sales of cigarettes continued to decline, mainly due to the decrease in smoking prevalence amongst Chile’s adult population, and the fact that more and more consumers were looking for cost-effective alternatives to cigarettes, as the average unit price of cigarettes continued to steadily increase. Moreover, heavy smokers were trying to quit smoking. However, this ongoing negative trend did not impact value sales, as the average unit price of cigarettes continued to rise in 2016. Cigarettes also experienced a premiumisation trend. Consequently, in 2016 premium cigarettes gained significant ground, to the detriment of economy and mid-priced cigarettes, as players focused on developing more sophisticated products with added-value features, such as flavour capsules, higher-quality filters and folding cartons. These delivered a higher experience to existing consumers and broadened the consumer base. Hence, Chile’s cigarette companies re-thought their product portfolio structure by shifting their investment to the premium segment.

Consumers’ continuous quest for alternatives to cigarettes which are considered healthier and cost-effective boosts the performance of smoking tobacco

In 2016 the excellent performance of smoking tobacco was mainly due to the ongoing switch from cigarettes to fine cut tobacco, especially amongst younger consumers. This trend was driven both by unit price increases for cigarettes and rising health awareness, especially amongst younger people. Many consumers consider smoking tobacco to be less harmful than cigarettes. Importers took advantage of this trend by enlarging their fine cut tobacco product offerings with sophisticated flavours in order to meet consumers’ needs and expectations.

Rivalry in premium cigarettes intensifies, especially in flavoured capsule offerings

During 2016, the performance of premium cigarettes was mainly driven by flavour capsules, which have gained strong popularity in Chile, especially amongst women. Players took advantage of this opportunity to focus on their premium brands by launching new sophisticated versions of capsules with different flavours, such as a berry and mint flavour combination. According to trade sources, in 2016 single click capsule accounted for 67% of overall sales of flavour capsules; meanwhile, double click capsule accounted for 33%. British American Tobacco Chile and Philip Morris Chile Comercializadora have both developed and marketed their own flavour capsule lines.

In 2016 price increases on cigarettes fuel the growth of illicit trade

Illicit trade continued to gain ground in Chile in 2016, boosted by the relatively high rate of tax on cigarettes in global terms, with taxes accounting for more than 80% of the average pack price of cigarettes in 2016. According to trade sources, illicit trade in cigarettes was fostered by availability in formal distribution channels. There is a direct correlation between taxes, the unit prices of cigarettes and illicit trade. Indeed, increases in taxes are usually passed on to the average unit price of cigarettes, therefore boosting the growth of illicit trade in Chile. Another relevant factor in the expansion of illicit trade is the significant difference between the unit prices charged for cigarettes within Chile and the unit prices charged for cigarettes in neighbouring countries, which contributes to the development of illicit trade. Unit price differences between illicit and licit cigarettes can reach 78%. Nevertheless, the government has experienced greater success in its attempts to seize these products, which has the potential to avoid steeper growth in the illicit supply of cigarettes during the forecast period.

Volume sales of cigarettes set to continue decreasing over the forecast period

Over the forecast period, retail volume sales of cigarettes are expected to continue their downwards trend, exhibiting a negative CAGR of 3%. This can be explained both by the continuous decline in smoking prevalence amongst Chile’s total adult population and the steady increases in unit prices predicted over the next five years. The migration to alternatives which are considered safer and more affordable will continue to intensify

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Tobacco Sample Report Tobacco Sample Data

Overview

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Overview

Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in Chile 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 Tobacco industry in Chile, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in Chile for free:

The Tobacco in Chile market research report includes:

Analysis of key supply-side and demand trends
Detailed segmentation of international and local products
Historic volumes and values, company and brand market shares
Five year forecasts of market trends and market growth
Production, imports by origin, exports by destination
Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

What is the market size of Tobacco in Chile?
What are the major brands in Chile?
Which sector of the tobacco products market is the largest by value sales in Chile?
Which sector of the tobacco products market has been growing the fastest, by volume and value, in Chile?
Which sector is the most heavily taxed in Chile?
Which companies dominate in the total tobacco market in Chile in terms of market share?
What is the distribution channel split for the tobacco products market in Chile?

Why buy this report?

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

This industry report originates from Passport, our Tobacco market research database.

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Tobacco in Chile

EXECUTIVE SUMMARY

Trading up offsets the impact of the decline in cigarette volumes in 2016

Consumers’ continuous quest for alternatives to cigarettes which are considered healthier and cost-effective boosts the performance of smoking tobacco

Rivalry in premium cigarettes intensifies, especially in flavoured capsule offerings

In 2016 price increases on cigarettes fuel the growth of illicit trade

Volume sales of cigarettes set to continue decreasing over the forecast period

OPERATING ENVIRONMENT

Legislation

Legislative overview
Summary 1 Legislation Summary at a Glance

Country-specific legislation

Minimum legal smoking age

Smoking prevalence

Tar levels

Health warnings

Plain packaging

Advertising and sponsorship

Advertising through media (television, radio, billboards, consumer press, trade press, cinema, etc)
Advertising through retail points of sale
Sponsorship of sporting/music events
Distribution of tobacco-branded gifts (e.g. cigarette-branded lighters, pens, etc)

Point-of-sale display bans

Smoking in public places

Low ignition propensity (LIP) cigarette regulation

Flavoured tobacco product ban

“Reduced harm”

Electronic cigarettes

Litigation

PRODUCTION/IMPORTS/EXPORTS

Table 1 Trade Statistics: Cigarettes 2011-2016

LEGISLATION APPENDIX

MARKET INDICATORS

Table 2 Smoking Prevalence in Adult Population 2011-2016
Table 3 Number of Adult Smokers by Gender 2011-2016

MARKET DATA

Table 4 Sales of Tobacco by Category: Volume 2011-2016
Table 5 Sales of Tobacco by Category: Value 2011-2016
Table 6 Sales of Tobacco by Category: % Volume Growth 2011-2016
Table 7 Sales of Tobacco by Category: % Value Growth 2011-2016
Table 8 Forecast Sales of Tobacco by Category: Volume 2016-2021
Table 9 Forecast Sales of Tobacco by Category: Value 2016-2021
Table 10 Forecast Sales of Tobacco by Category: % Volume Growth 2016-2021
Table 11 Forecast Sales of Tobacco by Category: % Value Growth 2016-2021

SOURCES

Summary 2 Research Sources

Tobacco in Chile - Company Profiles

British American Tobacco Chile SA in Tobacco (Chile)

STRATEGIC DIRECTION

KEY FACTS

Summary 3 British American Tobacco Chile SA: Key Facts

PRODUCTION

COMPETITIVE POSITIONING

Summary 4 British American Tobacco Chile SA: Competitive Position 2016

Intercigar Comercial Ltda in Tobacco (Chile)

STRATEGIC DIRECTION

KEY FACTS

Summary 5 Intercigar Comercial Ltda: Key Facts

PRODUCTION

COMPETITIVE POSITIONING

Summary 6 Intercigar Commercial Ltda: Competitive Position 2016

Philip Morris Chile Comercializadora Ltda in Tobacco (Chile)

STRATEGIC DIRECTION

KEY FACTS

Summary 7 Philip Morris Chile Comercializadora Ltda: Key Facts

PRODUCTION

COMPETITIVE POSITIONING

Summary 8 Philip Morris Chile Comercializadora Ltda: Competitive Position 2016

Cigarettes in Chile

HEADLINES

TRENDS

TAXATION AND PRICING

Duty paid packet marks

Taxation rates

Table 12 Taxation and Duty Levies 2011-2016

Cigarettes: Price bands

Summary 9 Cigarette Price Band Definitions

Average cigarette pack price breakdown

Summary 10 Average Cigarette Pack Price Breakdown: Brand Examples

COMPETITIVE LANDSCAPE

ILLICIT TRADE

NEW PRODUCT DEVELOPMENTS

Summary 11 Cigarettes: New Product Launches

DISTRIBUTION

CATEGORY DATA

Table 13 Sales of Cigarettes: Volume 2011-2016
Table 14 Sales of Cigarettes by Category: Value 2011-2016
Table 15 Sales of Cigarettes: % Volume Growth 2011-2016
Table 16 Sales of Cigarettes by Category: % Value Growth 2011-2016
Table 17 Sales of Cigarettes by Tar Level: % Volume Breakdown 2011-2016
Table 18 Sales of Cigarettes by Price Band: % Volume Breakdown 2011-2016
Table 19 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2011-2016
Table 20 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2011-2016
Table 21 Sales of Filtered Cigarettes by Carbon vs Non-carbon: % Volume 2011-2016
Table 22 Sales of Cigarettes by Length: % Volume 2011-2016
Table 23 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2011-2016
Table 24 Sales of Cigarettes by Pack Size: % Volume 2011-2016
Table 25 NBO Company Shares of Cigarettes: % Volume 2012-2016
Table 26 LBN Brand Shares of Cigarettes: % Volume 2013-2016
Table 27 Sales of Cigarettes by Distribution Format: % Volume 2011-2016
Table 28 Production, Imports and Exports of Cigarettes: Total Volume 2011-2016
Table 29 Illicit Trade Estimate of Cigarettes: Volume 2011-2016
Table 30 Forecast Sales of Cigarettes: Volume 2016-2021
Table 31 Forecast Sales of Cigarettes by Category: Value 2016-2021
Table 32 Forecast Sales of Cigarettes: % Volume Growth 2016-2021
Table 33 Forecast Sales of Cigarettes by Category: % Value Growth 2016-2021
Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume 2016-2021
Table 35 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2016-2021
Table 36 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2016-2021
Table 37 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2016-2021
Table 38 Forecast Sales of Filtered Cigarettes by Carbon vs Non-carbon: % Volume 2016-2021
Table 39 Forecast Sales of Cigarettes by Length: % Volume 2016-2021
Table 40 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2016-2021
Table 41 Forecast Sales of Cigarettes by Pack Size: % Volume 2016-2021

Cigars, Cigarillos and Smoking Tobacco in Chile

HEADLINES

TRENDS

TAXATION AND PRICING

Duty paid packet marks

Taxation rates

Table 42 Cigars Taxation and Duty Levies 2011-2016
Table 43 Smoking Tobacco Taxation and Duty Levies 2011-2016

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

Summary 12 Cigars, Cigarillos and Smoking Tobacco: New Product Launches

DISTRIBUTION

The role and effect of cannabis/marijuana

CATEGORY DATA

Table 44 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2011-2016
Table 45 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2011-2016
Table 46 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2011-2016
Table 47 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2011-2016
Table 48 Sales of Cigars by Size: % Volume 2011-2016
Table 49 NBO Company Shares of Cigars and Cigarillos: % Volume 2012-2016
Table 50 LBN Brand Shares of Cigars and Cigarillos: % Volume 2013-2016
Table 51 NBO Company Shares of Cigars: % Volume 2012-2016
Table 52 LBN Brand Shares of Cigars: % Volume 2013-2016
Table 53 NBO Company Shares of Cigarillos: % Volume 2012-2016
Table 54 LBN Brand Shares of Cigarillos: % Volume 2013-2016
Table 55 NBO Company Shares of Smoking Tobacco: % Volume 2012-2016
Table 56 LBN Brand Shares of Smoking Tobacco: % Volume 2013-2016
Table 57 NBO Company Shares of Pipe Tobacco: % Volume 2012-2016
Table 58 LBN Brand Shares of Pipe Tobacco: % Volume 2013-2016
Table 59 NBO Company Shares of Fine Cut Tobacco: % Volume 2012-2016
Table 60 LBN Brand Shares of Fine Cut Tobacco: % Volume 2013-2016
Table 61 Distribution of Cigars and Cigarillos by Format: % Volume 2011-2016
Table 62 Distribution of Smoking Tobacco by Format: % Volume 2011-2016
Table 63 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2016-2021
Table 64 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2016-2021
Table 65 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2016-2021
Table 66 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2016-2021

Smokeless Tobacco and Vapour Products in Chile

HEADLINES

TRENDS

VAPOUR PRODUCTS LEGISLATION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

Summary 13 Smokeless Tobacco and Vapour Products: New Product Launches

DISTRIBUTION

CATEGORY DATA

Table 67 Sales of Smokeless Tobacco and Vapour Products by Category: Value 2011-2016
Table 68 Sales of Smokeless Tobacco and Vapour Products by Category: % Value Growth 2011-2016
Table 69 Distribution of Vapour Products by Format: % Volume 2011-2016
Table 70 Forecast Sales of Smokeless Tobacco and Vapour Products by Category: Value 2016-2021
Table 71 Forecast Sales of Smokeless Tobacco and Vapour Products by Category: % Value Growth 2016-2021

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Megatrends

Country Report

Tobacco in Chile

New Report Guarantee

Executive Summary

New Report Guarantee

Trading up offsets the impact of the decline in cigarette volumes in 2016

Consumers’ continuous quest for alternatives to cigarettes which are considered healthier and cost-effective boosts the performance of smoking tobacco

Rivalry in premium cigarettes intensifies, especially in flavoured capsule offerings

In 2016 price increases on cigarettes fuel the growth of illicit trade

Volume sales of cigarettes set to continue decreasing over the forecast period

Samples

Overview

Why buy this report?

Samples: FAQs about samples

Want to find out more about this report?

Table of Contents

Tobacco in Chile

EXECUTIVE SUMMARY

Trading up offsets the impact of the decline in cigarette volumes in 2016

Consumers’ continuous quest for alternatives to cigarettes which are considered healthier and cost-effective boosts the performance of smoking tobacco

Rivalry in premium cigarettes intensifies, especially in flavoured capsule offerings

In 2016 price increases on cigarettes fuel the growth of illicit trade

Volume sales of cigarettes set to continue decreasing over the forecast period

OPERATING ENVIRONMENT

Legislation

Country-specific legislation

Minimum legal smoking age

Smoking prevalence

Tar levels

Health warnings

Plain packaging

Advertising and sponsorship

Point-of-sale display bans

Smoking in public places

Low ignition propensity (LIP) cigarette regulation

Flavoured tobacco product ban

“Reduced harm”

Electronic cigarettes

Litigation

PRODUCTION/IMPORTS/EXPORTS

LEGISLATION APPENDIX

MARKET INDICATORS

MARKET DATA

SOURCES

Tobacco in Chile - Company Profiles

British American Tobacco Chile SA in Tobacco (Chile)

STRATEGIC DIRECTION

KEY FACTS

PRODUCTION

COMPETITIVE POSITIONING

Intercigar Comercial Ltda in Tobacco (Chile)

STRATEGIC DIRECTION

KEY FACTS

PRODUCTION

COMPETITIVE POSITIONING

Philip Morris Chile Comercializadora Ltda in Tobacco (Chile)

STRATEGIC DIRECTION

KEY FACTS

PRODUCTION

COMPETITIVE POSITIONING

Cigarettes in Chile

HEADLINES

TRENDS

TAXATION AND PRICING

Duty paid packet marks

Taxation rates

Cigarettes: Price bands

Average cigarette pack price breakdown

COMPETITIVE LANDSCAPE

ILLICIT TRADE

NEW PRODUCT DEVELOPMENTS

DISTRIBUTION

CATEGORY DATA

Cigars, Cigarillos and Smoking Tobacco in Chile

HEADLINES

TRENDS

TAXATION AND PRICING

Duty paid packet marks

Taxation rates