Tobacco in 2024: The big picture
2024 was a year of significant economic challenges for Bolivia. Net international reserves closed the year at USD1.974 billion, according to reports from the Central Bank of Bolivia, well below the USD15 billion recorded a decade ago. This decline was reflected in a severe shortage of foreign currency within the banking system, which limited the ability of importers of tobacco and e-vapour products to make payments, resulting in frequent supply disruptions and persistent stock shortages.
2024 key trends
Retail volume sales of tobacco fell at an accelerated pace in 2024. A difficult economic environment, which impacted Bolivians' purchasing power, the ongoing challenges in supply chains, and the sustained decline in smoking prevalence all contributed to a drop in retail sales volumes. Although the market recorded a slight increase in retail value sales, this was primarily due to the country’s pronounced inflationary process and constant price increases, rather than any underlying growth in consumption.
Competitive landscape
Bolivia is Cía Industrial de Tabacos SA (CITSA) continues to lead the tobacco category. It owns the most prominent local cigarette brands, such as Casino and Derby, and is also the authorised distributor of the L&M and Marlboro brands from the global portfolio of Philip Morris International Inc. Although the company maintained its leadership in the cigarette category in 2024, it was significantly impacted by the illegal market, which particularly affected its economy and mid-priced brands.
Retail developments
Cigarette distribution in Bolivia is highly concentrated within the traditional channel, dominated by small independent neighbourhood stores, street kiosks, and street markets. The vast majority of Bolivians continue to make regular purchases at these retailers. In the case of cigarettes, this channel holds particular significance as it allows for single-stick purchases. Although this practice is technically illegal, this prohibition is not enforced and thus occurs frequently. A key strength of this channel is its extensive geographic coverage across both rural and urban areas. It is estimated that there are around 129,000 points of sale equivalent to one for every 90 inhabitants.
What next for tobacco?
Retail volume sales of tobacco are expected to decline at an accelerated rate during the forecast period. Smoking prevalence will continue to fall, as younger generations adopt lifestyle habits that reflect a more preventative approach to healthcare. Smoking is becoming less socially accepted, and the economic outlook suggests no significant improvements in the short term. As a result, Bolivians are expected to remain cautious when purchasing non-essential products like tobacco.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Bolivia 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 Bolivia, 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 Bolivia 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 Bolivia?
- Which are the leading brands in Tobacco in Bolivia?
- How are products distributed in Tobacco in Bolivia?
- Which category is the most heavily taxed in Bolivia?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Bolivia?
- 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 Bolivia
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 Bolivia
KEY DATA FINDINGS
Illicit trade continues to grow in importance amid difficult economic conditions
Bis Overseas Bolivia SRL gains ground on Compañía Industrial del Tabaco SA
Small local grocers continue to dominate distribution
Volume sales will continue to decline amid increased smuggling and a dearth of younger smokers
Flavoured capsule cigarettes will grow in popularity in the mid-price segment
Innovation likely to focus on new capsule flavours
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Bolivia
KEY DATA FINDINGS
Cigars, cigarillos and smoking tobacco hold little appeal for younger consumers
Legally imported brands are getting harder to find
E-commerce gains ground by connecting with niche consumers
Lack of appeal to younger consumers will continue to undermine sales
Growing supply of options with a focus on aromatic sensory notes, but intermittent supply impedes brand loyalty
Cigar brands look to refresh their image with limited-edition launches and cross-industry collaboration
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Bolivia
KEY DATA FINDINGS
Foreign-currency shortage undermines supply of e-vapour products
E-vapour distribution formalises
Grocery retailers widen distribution of e-vapour products
Growth in licit trade of e-vapour products we be limited
Range of flavours will continue to widen, as manufacturers seek to appeal to younger consumers
Some e-vapour products will be positioned as promoting wellness
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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