Executive Summary

Jul 2018
High inflation impacts consumer and manufacturer decisions

The dynamics of the market are influenced by the overall macroeconomic conditions, characterised by high inflation and falling purchasing power. In terms of demand, smokers started finding new ways of consuming tobacco, for example buying low-priced brands of cigarettes on weekdays and preferred brands at the weekend or on special occasions.

Devaluation limits illicit growth

In 2017 illicit trade showed a sharp decline during the months when the black market exchange was erratic, as smugglers faced greater uncertainty about their profit margins. However, flows of illicit cigarettes were reinstated as soon as the black market exchange rate stabilised, even with the slightest price difference, because the illegal operation is profitable due to the large quantities involved.

CA Cigarrera Bigott Sucs maintains leadership

Thanks to a strong brand positioned in the mid-price range (Belmont) and a strong distribution system, CA Cigarrera Bigott Sucs remained the most prominent company supplying tobacco in the country. Indeed, the holding company reaches all cities and even the smallest towns through the largest distribution network operating in Venezuela.

Traditional grocery retailers remains the main distribution channel for tobacco

Although the choice of distribution channels varies slightly according to the types of tobacco products sold, the convenience of location and widespread presence of traditional grocery retailers gave them a competitive advantage over other options. In Venezuela, bakeries are also part of this channel, but distribution fell in these specific stores due to the high chance of robberies and very low margins.

Recession is expected to continue over the forecast period

Venezuela will not resume growth without important changes to the political and economic framework. Under the existing scenario, it is improbable that domestic companies will return to production levels of 2013.

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Tobacco in Venezuela

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Overview

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

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

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 Venezuela

EXECUTIVE SUMMARY

High inflation impacts consumer and manufacturer decisions
Devaluation limits illicit growth
CA Cigarrera Bigott Sucs maintains leadership
Traditional grocery retailers remains the main distribution channel for tobacco
Recession is expected to continue over the forecast period

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
Advertising through media (television, radio, billboards, consumer press, trade press, cinema, etc)
Advertising through retail point of sale
Sponsorship of sporting/music events
Distribution of tobacco-branded gifts (eg 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

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 1 Number of Adult Smokers by Gender 2012-2017

MARKET DATA

Table 2 Sales of Tobacco by Category: Volume 2012-2017
Table 3 Sales of Tobacco by Category: Value 2012-2017
Table 4 Sales of Tobacco by Category: % Volume Growth 2012-2017
Table 5 Sales of Tobacco by Category: % Value Growth 2012-2017
Table 6 Forecast Sales of Tobacco by Category: Volume 2017-2022
Table 7 Forecast Sales of Tobacco by Category: Value 2017-2022
Table 8 Forecast Sales of Tobacco by Category: % Volume Growth 2017-2022
Table 9 Forecast Sales of Tobacco by Category: % Value Growth 2017-2022

DEFINITIONS

SOURCES

Summary 2 Research Sources

Cigars, Cigarillos and Smoking Tobacco in Venezuela

HEADLINES

PROSPECTS

Polarised demand faces limited variety
Cigars and cigarillos sees similar legislation to cigarettes in Venezuela
Food/drink/tobacco specialists remains the leading distribution channel for cigars

COMPETITIVE LANDSCAPE

Fábrica de Tabacos Bermúdez is the leading company in cigars and cigarillos
Domestic manufacturers use online tools to advertise brands

CATEGORY DATA

Table 10 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2012-2017
Table 11 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2012-2017
Table 12 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2012-2017
Table 13 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2012-2017
Table 14 Sales of Cigars by Size: % Volume 2012-2017
Table 15 NBO Company Shares of Cigars and Cigarillos: % Volume 2013-2017
Table 16 LBN Brand Shares of Cigars and Cigarillos: % Volume 2014-2017
Table 17 NBO Company Shares of Cigars: % Volume 2013-2017
Table 18 LBN Brand Shares of Cigars: % Volume 2014-2017
Table 19 NBO Company Shares of Cigarillos: % Volume 2013-2017
Table 20 LBN Brand Shares of Cigarillos: % Volume 2014-2017
Table 21 NBO Company Shares of Smoking Tobacco: % Volume 2013-2017
Table 22 LBN Brand Shares of Smoking Tobacco: % Volume 2014-2017
Table 23 NBO Company Shares of Pipe Tobacco: % Volume 2013-2017
Table 24 LBN Brand Shares of Pipe Tobacco: % Volume 2014-2017
Table 25 Distribution of Cigars and Cigarillos by Format: % Volume 2012-2017
Table 26 Distribution of Smoking Tobacco by Format: % Volume 2012-2017
Table 27 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2017-2022
Table 28 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2017-2022
Table 29 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2017-2022
Table 30 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2017-2022

Smokeless Tobacco and Vapour Products in Venezuela

HEADLINES

PROSPECTS

Other chewing tobacco is the only variety of smokeless tobacco available
Chewing chimó is a practice among low-income groups
The sale of e-cigarettes and vapour products is illegal in Venezuela

COMPETITIVE LANDSCAPE

Fábrica de Chimó El Tigrito leads the category
Smokeless tobacco is a category where innovation is rare
Smokeless tobacco products are not advertised

CATEGORY DATA

Table 31 Sales of Smokeless Tobacco and Vapour Products by Category: Volume 2012-2017
Table 32 Sales of Smokeless Tobacco and Vapour Products by Category: Value 2012-2017
Table 33 Sales of Smokeless Tobacco and Vapour Products by Category: % Volume Growth 2012-2017
Table 34 Sales of Smokeless Tobacco and Vapour Products by Category: % Value Growth 2012-2017
Table 35 NBO Company Shares of Smokeless Tobacco: % Volume 2013-2017
Table 36 LBN Brand Shares of Smokeless Tobacco: % Volume 2014-2017
Table 37 Distribution of Smokeless Tobacco by Format: % Volume 2012-2017
Table 38 Forecast Sales of Smokeless Tobacco and Vapour Products by Category: Volume 2017-2022
Table 39 Forecast Sales of Smokeless Tobacco and Vapour Products by Category: Value 2017-2022
Table 40 Forecast Sales of Smokeless Tobacco and Vapour Products by Category: % Volume Growth 2017-2022
Table 41 Forecast Sales of Smokeless Tobacco and Vapour Products by Category: % Value Growth 2017-2022

Cigarettes in Venezuela

HEADLINES

PROSPECTS

Venezuelan smokers find new ways of consuming cigarettes
Illicit trade is hit by devaluation of domestic currency
Venezuelans prefer short cigarettes

COMPETITIVE LANDSCAPE

CA Cigarrera Bigott Sucs leads cigarettes
Despite recession 20-stick pack size remains very popular
CA Cigarrera Bigott Sucs launches first capsule flavour

TAXATION AND PRICING

Taxation rates
Table 42 Taxation and Duty Levies 2012-2017
Average cigarette pack price breakdown
Summary 3 Average Cigarette Pack Price Breakdown: Brand Examples

CATEGORY DATA

Table 43 Sales of Cigarettes: Volume 2012-2017
Table 44 Sales of Cigarettes by Category: Value 2012-2017
Table 45 Sales of Cigarettes: % Volume Growth 2012-2017
Table 46 Sales of Cigarettes by Category: % Value Growth 2012-2017
Table 47 Sales of Cigarettes by Tar Level: % Volume Breakdown 2012-2017
Table 48 Sales of Cigarettes by Price Band: % Volume Breakdown 2012-2017
Table 49 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2012-2017
Table 50 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2012-2017
Table 51 Sales of Filtered Cigarettes by Carbon vs Non-carbon: % Volume 2012-2017
Table 52 Sales of Cigarettes by Length: % Volume 2012-2017
Table 53 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2012-2017
Table 54 Sales of Cigarettes by Pack Size: % Volume 2012-2017
Table 55 NBO Company Shares of Cigarettes: % Volume 2013-2017
Table 56 LBN Brand Shares of Cigarettes: % Volume 2014-2017
Table 57 Sales of Cigarettes by Distribution Format: % Volume 2012-2017
Table 58 Production, Imports and Exports of Cigarettes: Total Volume 2012-2017
Table 59 Illicit Trade Estimate of Cigarettes: Volume 2012-2017
Table 60 Forecast Sales of Cigarettes: Volume 2017-2022
Table 61 Forecast Sales of Cigarettes by Category: Value 2017-2022
Table 62 Forecast Sales of Cigarettes: % Volume Growth 2017-2022
Table 63 Forecast Sales of Cigarettes by Category: % Value Growth 2017-2022
Table 64 Forecast Sales of Cigarettes by Tar Level: % Volume 2017-2022
Table 65 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2017-2022
Table 66 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2017-2022
Table 67 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2017-2022
Table 68 Forecast Sales of Filtered Cigarettes by Carbon vs Non-carbon: % Volume 2017-2022
Table 69 Forecast Sales of Cigarettes by Length: % Volume 2017-2022
Table 70 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2017-2022
Table 71 Forecast Sales of Cigarettes by Pack Size: % Volume 2017-2022