Tobacco in 2024: The big picture
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.
2024 key trends
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.
Competitive landscape
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
Retail developments
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.
What next for tobacco?
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.
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Overview:
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:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
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.
The Tobacco in Mexico 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 Mexico?
- Which are the leading brands in Tobacco in Mexico?
- How are products distributed in Tobacco in Mexico?
- Which category is the most heavily taxed in Mexico?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Mexico?
- 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 Mexico
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
Plain packaging
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Flavoured tobacco product ban
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Mexico
KEY DATA FINDINGS
Inflation impacts progress for cigarettes in Mexico in 2024
Phillip Morris maintains its leadership
Convenience and pharmacy channels drive cigarette sales growth
Expected decline in consumption driven by health trends and illicit trade
Regulation and innovation will reshape the future of cigarette performance
Flavour and functionality: the next wave of cigarette alternatives
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Mexico
KEY DATA FINDINGS
Supply disruptions and regulatory barriers drive decline in cigar sales in 2024
Nueva Distabac leads but loses ground amid economic and regulatory pressures
Specialist stores dominate as hotels face setbacks
Contrasting trends: cigars and cigarillos face future growth while smoking tobacco declines
Geopolitical tensions and trade policy changes may impact prices and availability
Potential for innovation remains
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Mexico
KEY DATA FINDINGS
Mexican government reinforces the prohibition of smokeless tobacco and e-vapour products
Regulatory implementation hindered by product availability
Specialist stores still accessible in 2024
Regulatory challenges and consumer shifts in the e-vapour and heated tobacco market
Current conditions open opportunities for product innovation
Potential for increased relevance of non-tobacco alternatives
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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