Mexico’s tobacco industry is undergoing significant changes, with three major trends emerging – all of which were notable in 2024. First, there is a noticeable decline in smoking prevalence and a growing social stigma associated with tobacco use, driven by increased awareness of health risks and aggressive anti-smoking campaigns. Secondly, economic conditions are influencing consumer behaviour, with heightened price sensitivity leading to a preference for cheaper alternatives or reduced consumption. Lastly, the landscape of nicotine products is evolving rapidly, with innovations such as e-vapour products gaining popularity despite regulatory challenges. Additionally, alternative products like nicotine pouches are becoming widely available, increasing their relevance as consumers seek less harmful options to traditional smoking.
In 2024, overall tobacco in Mexico posted slight volume sales growth despite facing tighter regulations and increasing health concerns from consumers. This growth was driven by widespread downtrading as consumers sought more affordable options. One significant trend was the shift from the illicit purchase of loose cigarettes to buying whole packages which allow consumers to save money in the long run.
Phillip Morris International and British American Tobacco (BAT) are the leading companies in tobacco in Mexico, industry, with Philip Morris ahead of BAT. These companies have well-established brands and extensive distribution networks throughout the country. Philip Morris- portfolio includes the leading brand Marlboro within cigarettes, but it also offers the IQOS device, which heats tobacco without combustion, and the player recently introduced nicotine pouches under the Zyn brand. Philip Morris recorded the second-fastest growth in 2024, driven by Marlboro. The fastest-rising company was Japan Tobacco International (JTI) with its popular Winston cigarette brand
Small local grocers led distribution for cigarettes in 2024 due to these stores’ widespread presence and strong community ties. However, the channel is increasing competition from convenience retail, with players like OXXO (FEMSA) as major drivers of this channel. In 2024, OXXO continued to expand its footprint and enhance its product offerings. Forecourt retailers recorded the second-fastest growth among distribution channels for cigarettes in 2024, just behind health and beauty specialists, with the latter rising from a very small base. Convenience stores was the only other channel to post significant growth during the year, with small local grocers rising only slightly.
Volume sales of tobacco are set to fall over the forecast period. Mexico will see continued decline in smoking prevalence due to increasing health awareness and stringent regulations. Despite this, there are growth opportunities in the market, particularly in alternative nicotine products. Innovations such as nicotine pouches might expand thanks to their recent availability, enabled by leading companies. However, the more popular alternatives such as heated tobacco and e-vapor products, are likely to face strong challenges amid current regulations. Although at the time of writing such products are widely available, there may be efforts by authorities to implement the most recent regulations, which will hinder the availability of these products in the future.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Understand the latest market trends and future growth opportunities for the Tobacco industry in Mexico 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:
If you're in the Tobacco industry in Mexico, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
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 definitionsThis report originates from Passport, our Tobacco research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!