Tobacco in 2024: The big picture
Honduras faces a complex economic scenario, being one of the countries with the highest poverty rates in the region. It is estimated that nearly three-quarters of its population lives below the national poverty line.
2024 key trends
The tobacco industry as a whole recorded a contraction in retail volume sales in 2024. Its main product, cigarettes, is experiencing a decline in demand due to changing generational habits driven by greater awareness of health prevention, while other products, such as cigars, despite having significant local production, are unaffordable for most local consumers. The country's high poverty rates make these products unaffordable for the majority of the population.
Competitive landscape
The tobacco category in Honduras is widely led by British American Tobacco Plc, the owner of local company Tabacalera Hondureña SA, which has been present in Honduras for nearly 100 years. Seeking to align itself with the growing consumer preference for flavoured products and, at the same time, pursue a quality differentiation strategy, this company is focusing on its Lucky Strike brand with flavoured capsules, which it is positioning as a replacement for its Bemont brand.
Retail developments
The most important channel for the distribution of tobacco products, and more specifically cigarettes, in Honduras are small local grocers. This channel represents nearly half of the retail volume sales of this product.
What next for tobacco?
Tobacco sales over the forecast period are projected to continue declining in retail volume terms. Its most representative product, cigarettes, faces a complex scenario in which the prevalence of smokers is estimated to continue to decline steadily. New generations of Hondurans show no attraction to joining the category with the same avidity as previous generations. There is greater awareness of adopting healthier lifestyles, and smoking is losing social acceptance.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Honduras 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 Honduras, 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 Honduras 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 Honduras?
- Which are the leading brands in Tobacco in Honduras?
- How are products distributed in Tobacco in Honduras?
- Which category is the most heavily taxed in Honduras?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Honduras?
- 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 Honduras
Tobacco in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
What next for tobacco?
Legislation
TAXATION AND DUTY LEVIES
DISCLAIMER
Key Data Findings
2024 Developments
A complex socioeconomic environment favours the growth of the illicit cigarette trade
British American Tobacco Plc maintains a broad leadership although it faces complications from the cessation of its local production
Small local grocers remains relevant due to the broad reach of this channel, although it faces increasing pressure from the development of convenience stores
Prospects and Opportunities
An unfavourable outlook for cigarettes, given the declining prevalence of smoking and the increasing illicit trade
The withdrawal of the British American Tobacco Plc plant from Honduras potentially creates opportunities for competitors
Low premiumisation prospects limit opportunities to introduce sophisticated cigarette innovations
Category Data
Key Data Findings
2024 Developments
Despite significant local cigar production, local consumption is low; the economic climate is not conducive to the development of this category
Honduran companies are consolidating their solid international reputation in cigars, although this does not equate to the significant development of the local market
The digitalisation of purchasing is advancing in Honduras, although it is still concentrated among demographic groups with greater purchasing power
Prospects and Opportunities
Honduran cigar production continues to expand, but does not find a favourable environment for growth in local consumption
Emerging brands seek to democratise cigars and cigarillos with less expensive options and more subtle flavours
Niche e-vapour alternatives seek to emulate the sensory experience of cigars and appeal to younger generations
Category Data
Key Data Findings
2024 Developments
E-vapour products category expands with the formal entry of global brands
Dynamic competition in disposable e-vapour products with more affordable prices, favours the evolution of the category
Major supermarket and convenience store chains expand e-vapour distribution in Honduras
Prospects and Opportunities
Affordable prices and generational shifts in tastes drive continued growth of closed system single-use e-vapour products in Honduras
Public awareness rises around the potential health risks attributed to vaping
Innovations aim for new functional positioning with health benefit attributes
Category Data
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.
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This report originates from Passport, our Tobacco research and analysis database.
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