Executive Summary

Jul 2019
Cigarettes hit by cutting back, quitting and rising prices

Cigarettes, by far the largest and most significant category in the tobacco market, posted a contraction in volume sales in 2018. The market was affected by a number of trends, not least of which was a decline in smoking prevalence and the average number of sticks smoked per day.

Tobacco brands face strong marketing and advertising restrictions

The tobacco industry continued to face a number of challenges in 2018 not least of which were the stringent regulations governing marketing activities and advertising, limiting opportunities to promote market growth. Cigarette manufacturers, which launched several products and new flavours in capsules and non-capsules during the year, faced the challenge of communicating these launches to consumers.

Phillip Morris and British American Tobacco lead thanks to wide price range

Philip Morris International, through its Mexican subsidiary, continues to be the leading company in tobacco. Its strategy is based on the consolidation of premium and economy brands through Marlboro and Benson & Hedges (premium segment) and Delicados and Chesterfield (economy segment).

Consumers favour traditional grocery retailers for cigarettes

Channel distribution varies depending on the tobacco category. While categories such as smokeless tobacco are mainly concentrated in tobacco specialists and in the Sanborns chain, cigarettes are distributed via a wider range of channels.

Growth constrained by diminishing smoking prevalence but benefits from innovation

Although smoking prevalence is expected to continue declining, as well as the average number of sticks per day per smoker, cigarettes is likely to maintain a positive CAGR in retail volume terms over the 2018-2023 period. However, growth will be moderate as initiatives from anti-tobacco organisations and the government will continue to have an impact on smoking prevalence.

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Tobacco in Mexico

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Overview

Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in Mexico 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 Mexico, 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 Mexico for free:

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

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.

Tobacco in Mexico

EXECUTIVE SUMMARY

Cigarettes hit by cutting back, quitting and rising prices
Tobacco brands face strong marketing and advertising restrictions
Phillip Morris and British American Tobacco lead thanks to wide price range
Consumers favour traditional grocery retailers for cigarettes
Growth constrained by diminishing smoking prevalence but benefits from innovation

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 1 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Flavoured tobacco product ban
E-vapour products

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 1 Number of Adult Smokers by Gender 2013-2018

MARKET DATA

Table 2 Sales of Tobacco by Category: Volume 2013-2018
Table 3 Sales of Tobacco by Category: Value 2013-2018
Table 4 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 5 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 6 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 7 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 8 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 9 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

SOURCES

Summary 2 Research Sources

Cigars, Cigarillos and Smoking Tobacco in Mexico

HEADLINES

PROSPECTS

Fine cut tobacco benefits from offering value while cigars benefit from Nicaraguan influx
Distribution helps to make cigars and cigarillos accessible to consumers
Changing consumer profiles alter consumption and shopping habits

COMPETITIVE LANDSCAPE

Small category but growth in the number of competitors
New launch focuses on premiumisation
Price, new product development, tourism and distribution are key

CATEGORY DATA

Table 10 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2013-2018
Table 11 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2013-2018
Table 12 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2013-2018
Table 13 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2013-2018
Table 14 Sales of Cigars by Size: % Volume 2013-2018
Table 15 Sales of Cigarillos by Price Platform 2013-2018
Table 16 NBO Company Shares of Cigars and Cigarillos: % Volume 2014-2018
Table 17 LBN Brand Shares of Cigars and Cigarillos: % Volume 2015-2018
Table 18 NBO Company Shares of Cigars: % Volume 2014-2018
Table 19 LBN Brand Shares of Cigars: % Volume 2015-2018
Table 20 NBO Company Shares of Cigarillos: % Volume 2014-2018
Table 21 LBN Brand Shares of Cigarillos: % Volume 2015-2018
Table 22 NBO Company Shares of Smoking Tobacco: % Volume 2014-2018
Table 23 LBN Brand Shares of Smoking Tobacco: % Volume 2015-2018
Table 24 NBO Company Shares of Pipe Tobacco: % Volume 2014-2018
Table 25 LBN Brand Shares of Pipe Tobacco: % Volume 2015-2018
Table 26 NBO Company Shares of Fine Cut Tobacco: % Volume 2014-2018
Table 27 LBN Brand Shares of Fine Cut Tobacco: % Volume 2015-2018
Table 28 Distribution of Cigars and Cigarillos by Format: % Volume 2013-2018
Table 29 Distribution of Smoking Tobacco by Format: % Volume 2013-2018
Table 30 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2018-2023
Table 31 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2018-2023
Table 32 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2018-2023
Table 33 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2018-2023

Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Mexico

HEADLINES

PROSPECTS

Ongoing decline as the category loses popularity
Anticipated legalisation of e-vapour and heated tobacco products
Limited but growing distribution helps these products slowly gain relevance

COMPETITIVE LANDSCAPE

Klondike rapidly eroding share of leading brand Kayak
Regulation limits companies from promoting smokeless tobacco products
Growing consumer awareness of brands and potential for new entrants

CATEGORY DATA

Table 34 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Volume 2013-2018
Table 35 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2013-2018
Table 36 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Volume Growth 2013-2018
Table 37 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2013-2018
Table 38 NBO Company Shares of Smokeless Tobacco: % Volume 2014-2018
Table 39 LBN Brand Shares of Smokeless Tobacco: % Volume 2015-2018
Table 40 Distribution of Smokeless Tobacco by Format: % Volume 2013-2018
Table 41 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Volume 2018-2023
Table 42 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2018-2023
Table 43 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Volume Growth 2018-2023
Table 44 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2018-2023
Table 45 Forecast Sales of Tobacco Heating Devices: Volume 2018-2023
Table 46 Forecast Sales of Tobacco Heating Devices: Value 2018-2023
Table 47 Forecast Sales of Heated Tobacco: Volume 2018-2023
Table 48 Forecast Sales of Heated Tobacco: Value 2018-2023

Cigarettes in Mexico

HEADLINES

PROSPECTS

Moderate volume growth but high value growth boosted by new products
Innovation a key driver of consumption
Regulation having long-term impact on smoking prevalence

COMPETITIVE LANDSCAPE

Leading players offer flavour innovation
Value pack formats and eye-catching designs used to woo smokers
Philip Morris consolidates its brand portfolio

TAXATION AND PRICING

Taxation rates
Summary 3 Taxation and Duty Levies 2013-2018
Average cigarette pack price breakdown
Summary 4 Average Cigarette Pack Price Breakdown: Brand Examples

CATEGORY DATA

Table 49 Sales of Cigarettes: Volume 2013-2018
Table 50 Sales of Cigarettes by Category: Value 2013-2018
Table 51 Sales of Cigarettes: % Volume Growth 2013-2018
Table 52 Sales of Cigarettes by Category: % Value Growth 2013-2018
Table 53 Sales of Cigarettes by Blend: % Volume 2013-2018
Table 54 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2013-2018
Table 55 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
Table 56 Sales of Cigarettes by Pack Size: % Volume 2013-2018
Table 57 Sales of Cigarettes by Price Band: % Volume 2013-2018
Table 58 NBO Company Shares of Cigarettes: % Volume 2014-2018
Table 59 LBN Brand Shares of Cigarettes: % Volume 2015-2018
Table 60 Sales of Cigarettes by Distribution Format: % Volume 2013-2018
Table 61 Illicit Trade Estimate of Cigarettes: Volume 2013-2018
Table 62 Forecast Sales of Cigarettes: Volume 2018-2023
Table 63 Forecast Sales of Cigarettes by Category: Value 2018-2023
Table 64 Forecast Sales of Cigarettes: % Volume Growth 2018-2023
Table 65 Forecast Sales of Cigarettes by Category: % Value Growth 2018-2023
Table 66 Forecast Sales of Cigarettes by Blend: % Volume 2018-2023
Table 67 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2018-2023
Table 68 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2018-2023
Table 69 Forecast Sales of Cigarettes by Pack Size: % Volume 2018-2023
Table 70 Forecast Sales of Cigarettes by Price Band: % Volume 2018-2023