Tobacco in 2024: The big picture
Tobacco in the Philippines witnessed further decline in volume terms over 2024, in line with the falling smoking prevalence. The higher excise tax on cigarettes pushed up retail prices and deterred consumption, especially among the many consumers still facing high costs of living. Economy cigarette brands performed well in 2024 as many consumers remained cautious with spending and dealt with tighter household budgets. With consumers shifting away from cigarettes, the key players JT International (Philippines) Inc and Phillip Morris Fortune Tobacco Corp have strengthened their partnerships with sari-sari stores and other grocery retailers, in a bid to gain better visibility.
2024 key trends
Cigarettes is the largest tobacco category in the Philippines but is losing share amid declining consumption. The category remains challenged by the country’s unitary tax system making it costlier to purchase cigarettes on a per stick basis. Economy and mid-priced cigarettes bear the same level of excise tax as premium cigarette brands, creating high prices of individual sticks across all price bands. Despite its niche status, cigars and cigarillos registered growth and provided some stability for incumbent players. Consumers are less price conscious in this category, consisting of a more affluent base.
Competitive landscape
Philip Morris Fortune Tobacco Corp remained the most significant player in 2024, despite the decline in cigarette sales. The player holds a strong position in cigarettes due to its nationwide distribution, particularly in sari-sari stores. Marlboro remains the leading tobacco brand benefitting from its premium positioning, while the company is also enjoying dynamic growth in heated tobacco with Iqos, helping to preserve its lead in tobacco overall. The positioning of Iqos as a smoke-free product challenges e-vapour products, with heated tobacco being brought more directly into competition with disposable vapes.
Retail developments
The bulk of cigarettes are sold in small local grocers, as the major players in this category, Philip Morris and JT International have achieved deep penetration of sari-sari stores in the Philippine market. Sari-sari stores offer cigarettes per stick which meets the needs of the many low income consumers, giving them better control over spending on cigarettes as they do not have to commit to a pack of cigarettes. Leading brands such as Camel and Marlboro leverage trade merchandising and offer promotions through raffles within this channel. Incumbent players are also performing well in convenience stores, although modern retail channels are generally less accessible compared to other non-grocery retailers. Philip Morris Fortune Tobacco Corp has leveraged its in-house sales capability to unlock new growth sources within different territories outside Metro Manila. Philip Morris Fortune Tobacco Corp remains unmatched in terms of its sales network in the Philippines.
What next for tobacco?
Tobacco in the Philippines is expected to witness robust value growth over the forecast period as consumers transition to alternative products. By contrast, the ongoing decline in cigarette consumption will weigh on volume performance. E-vapour products offer substantial growth opportunities in line with rising consumer awareness and as incumbent players bolster their efforts to build a business outside of cigarettes. In heated tobacco, Iqos and Ploom are in good strategic positions to spur demand for this alternative product, whereas brands like Black Elite and Chillax could offer greater visibility in closed vaping systems.
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.
Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Philippines 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 Philippines, 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 Philippines 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 Philippines?
- Which are the leading brands in Tobacco in Philippines?
- How are products distributed in Tobacco in Philippines?
- Which category is the most heavily taxed in Philippines?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Philippines?
- 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 the Philippines
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
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in the Philippines
KEY DATA FINDINGS
Cigarettes witness further decline in retail volume sales
Philip Morris Fortune Tobacco Corp remains category leader
Small local grocers dominate the distribution of cigarettes
Cigarette consumption will continue to decline in the Philippines
Strategic focus on alternatives will enable incumbents to mitigate falling sales of cigarettes
Small local grocers will remain key distribution channel whilst illicit trade rises
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in the Philippines
KEY DATA FINDINGS
Cigars and cigarillos remains buoyant amid steady demand
Tabacalera Inc maintains its solid lead in cigars/cigarillos
Tobacco specialist retailers is key channel for cigars and cigarillos
Cigars and cigarillos anticipated to grow steadily
Brand promotions will target young adult smokers
Flavoured cigarillos should stimulate consumer interest
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in the Philippines
KEY DATA FINDINGS
E-vapour and heated tobacco registers robust value growth
Philip Morris Fortune Tobacco Corp leads heated tobacco while closed vaping systems remain fragmented
Specialist retailers and e-commerce are important channels for e-vapour and heated tobacco products
Regulation of e-vapour products offers long-term benefits for the industry
Convenience will drive shift to closed vaping systems
Leading players to spearhead innovation in heated tobacco
The following categories and subcategories are included:
Tobacco
-
-
- Fine Cut Cigarettes
-
- Cigarettes (Illicit+Legal)
-
-
- Cigars
- Cigarillos
-
- Pipe Tobacco
- Fine Cut Tobacco
-
-
-
- Chewing Tobacco
-
-
- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
-
-
-
- Closed System Single Use
-
- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
-
- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
-
-
- Tobacco Heating Devices
- Heated Tobacco
-
- Nicotine Pouches
-
-
- 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?
- Gain competitive intelligence about market leaders
- 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.
NEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!