Tobacco in 2024: The big picture
Tobacco in Ecuador registered a further decline in volume sales in 2024. The landscape continued to be shaped by a steady decline in legal cigarette sales, driven by reduced smoking prevalence and growing health awareness. This reduction has been supported by public restrictions on smoking and regular health campaigns. However, the decline is slowing down, suggesting a core base of smokers continue to smoke.
2024 key trends
Cigarettes remained the largest tobacco product in term of volume sales, accounting for the bulk of both legal and illicit sales. Despite ongoing volume declines in the legal segment due to tighter regulations, rising health concerns, and shifting consumer preferences, cigarettes continue to dominate in terms of consumption. Their entrenched presence, widespread availability and relatively lower cost compared to newer nicotine alternatives, helped maintain their leading position.
Competitive landscape
PMI, through its representative Tabacalera Andina SA, continued to hold a dominant position tobacco in Ecuador. It is the only legal player operating in cigarettes and despite ongoing challenges posed by the growth of illicit trade and declining smoking rates, PMI has maintained its leadership through a combination of brand loyalty, strong distribution networks, and strategic pricing.
Retail developments
In 2024, small local grocers continued to be the primary retail channel for tobacco products and in particular cigarettes. These neighbourhood stores, commonly known as 'tiendas de barrio', are deeply rooted in local communities and offer convenient access to consumers. Their widespread presence across urban and rural areas makes them a key point-of-sale, especially for lower-income consumers who generally purchase tobacco in smaller quantities. These stores also play a significant role in the distribution of contraband cigarettes. The informal nature of many of these grocers, combined with limited regulatory oversight, facilitates the sale of untaxed or smuggled tobacco.
What next for tobacco?
The outlook is bleak for tobacco over the forecast period. Smoking rates will continue to decline, particularly among younger generations. This will also be supported by tightening tobacco regulations, such as higher taxes and restrictions on advertising.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Ecuador 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 Ecuador, 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 Ecuador 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 Ecuador?
- Which are the leading brands in Tobacco in Ecuador?
- How are products distributed in Tobacco in Ecuador?
- Which category is the most heavily taxed in Ecuador?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Ecuador?
- 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 Ecuador
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 Ecuador
KEY DATA FINDINGS
Illicit cigarettes dominate sales
Phillip Morris International competes against ilicit trade
Small local grocers, the backbone of cigarette distribution, faces challenges in 2024
Illicit trade gains further volume share over forecast period
Ecuador’s tobacco-free initiative promotes lower consumption
Limited innovation in cigarettes as Phillip Morris International focuses on alternatives
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Ecuador
KEY DATA FINDINGS
Slump in tourist numbers adversely impacts cigars and cigarrillos
Corporación de Habanos continues to lead
Stores located near touristic places
Tourism recovery slows decline of cigars and cigarillos
Uncertain future for local brands
Minimal innovation from local brands
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Ecuador
KEY DATA FINDINGS
Strong growth in closed system single use e-vapour products, while heated tobacco gains traction
Philip Morris International dominates
Legal e-vapour sales expand through mall kiosks, convenience stores and small local grocers, reshaping retail tobacco dynamics in Ecuador
Healthy growth over foecast period
Illicit trade remains a key barrier to growth
Continuing innovation over forecast period
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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- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Tobacco research and analysis database.
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