Tobacco in 2024: The big picture
The tobacco market in Argentina experienced a notable decline in volume terms in 2024, driven primarily by a sharp drop in cigarettes sales and a deep contraction in the consumption of cigars and cigarillos. This downturn was largely attributable to a significant reduction in the purchasing power of middle- and low-income consumers, who were particularly affected by the country’s ongoing economic crisis. Meanwhile, smokeless tobacco, e-vapour products and heated tobacco remain illegal in Argentina, despite government attempts to legalise their sale.
2024 key trends
Within the context of surging inflation and a steep decline in consumer purchasing power, the Argentine cigarettes market - comprising the majority of tobacco sales - suffered a weak performance in volume terms in 2024. This was largely driven by a shrinking population of cigarette smokers, as well as a shift in consumption towards fine cut tobacco, which gained traction due to its more affordable pricing and a broad variety of brand options.
Competitive landscape
Massalin Particulares SA, the primary operational arm of Philip Morris International in Argentina, continued to lead the country’s tobacco market in 2024, having maintained an aggressive pricing strategy to compete with domestic brands. Additionally, Massalin has streamlined its cigarette portfolio in recent years, competing in the premium segment with Parliament; the mid-priced segment with Philip Morris, Marlboro, and Harmony; and in the value segment with the newly launched Marlboro Crafted - introduced to replace the discontinued L&M brand and target ultra-low-priced competitors. Innovation remained a core part of the player’s strategy. In April 2024, Massalin introduced Marlboro Vista Fusion 3, a flavoured capsule cigarette, followed by the launch of Chesterfield Coral Motion in June 2024, both aimed at younger consumers.
Retail developments
Small local grocers remain the primary distribution channel for tobacco products in Argentina, particularly for cigarettes. However, the ongoing economic crisis has led many smokers to reduce their visits to convenience stores and forecourt retailers, shifting purchasing habits. By contrast, food, drink, and tobacco specialist stores increased their market share of smoking tobacco sales over the review period, benefiting from more targeted offerings and price-sensitive consumers.
What next for tobacco?
Argentina’s projected economic recovery - characterised by declining inflation and moderate GDP growth over the next two years - could support a gradual rebound in the tobacco market over the forecast period. As real incomes begin to recover, demand for mid-range and premium tobacco products may improve, reversing the downtrading trend seen during the financial crisis.
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Overview:
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:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
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.
The Tobacco in Argentina report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Tobacco in Argentina?
- Which are the leading brands in Tobacco in Argentina?
- How are products distributed in Tobacco in Argentina?
- Which category is the most heavily taxed in Argentina?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Argentina?
- How has COVID-19 impacted demand?
- How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
- Where is future growth expected to be most dynamic?
Tobacco in Argentina
Tobacco in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
What next for tobacco?
Legislation
Legislative overview
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
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Argentina
KEY DATA FINDINGS
Cigarette sales experience decline due to economic instability and lower smoking prevalence
Massalin Particulares leads competitive landscape
Small local grocers dominate cigarette sales, while e-commerce increases its share
Cigarette sales will see gradual decline amid regulatory pressures and shifting consumer health concerns
Global companies will continue streamlining their portfolios
Flavoured capsule cigarettes will continue as key focus of new product development
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Argentina
KEY DATA FINDINGS
Mixed performance in 2024, as economic recession continues to bite
Tabacalera leads with broad portfolio of local and imported options
Small local grocers gain ground, driven by growing popularity of economically-priced fine cut tobacco
Fine cut tobacco will continue to make gains, while pipe tobacco will emerge as niche area of growth
Tabacalera Sarandí ceases domestic production to focus on premium products
Less restrictive government policies may fuel rebound of imported offerings
The following categories and subcategories are included:
Tobacco
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- Fine Cut Cigarettes
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- Cigarettes (Illicit+Legal)
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- Cigars
- Cigarillos
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- Pipe Tobacco
- Fine Cut Tobacco
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- Chewing Tobacco
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- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
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- Closed System Single Use
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- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
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- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
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- Tobacco Heating Devices
- Heated Tobacco
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- Nicotine Pouches
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- Closed System Single Use (Illicit+Legal)
- Closed System Cartridges (Illicit+Legal)
- E-Liquids (Illicit+Legal)
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 definitionsWhy buy this report?
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This report originates from Passport, our Tobacco research and analysis database.
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