Tobacco in 2024: The big picture
Uruguay’s economy remained relatively stable in 2024, in contrast to ongoing economic turmoil in neighbouring Argentina. Despite this, the country’s tobacco industry continued to face considerable challenges, including stringent tobacco control legislation and a high tax burden. These factors drove a notable rise in illicit cigarette consumption, with illegal products accounting for over one third of total cigarette volume sales in 2024 - a marked increase compared to previous years. However, the limited availability of alternative nicotine products – with heated tobacco and e-vapour products remaining either unavailable or illegal in Uruguay - reinforced dependence on traditional cigarettes despite their rising costs. At the same time, smoking prevalence remained largely static, despite ongoing public health campaigns.
2024 key trends
The tobacco industry in Uruguay experienced to decline in volume terms in 2024. One major factor behind this trend was the growing health and wellness movement, which encouraged many consumers to reduce their cigarette consumption. The market is also subject to strict regulatory constraints: tobacco products cannot be displayed publicly, cigarettes much be sold in plain packaging, and only one variant per brand is permitted in each tobacco category.
Competitive landscape
Cía Industrial de Tabacos Monte Paz SA, Uruguay’s only domestic tobacco producer, maintained its industry dominance in 2024, driven by its flagship brands Nevada and Coronado, and supported by other key labels such as California, Madison, and Ocean. The player increased its market share in 2024, capitalising on the weakened performance of Abal Hnos, the local distributor for Philip Morris International, and the exit of British American Tobacco (BAT) in August 2024. During the review period, BAT’s presence was limited to Lucky Strike but it reportedly parted ways with the brand, due to dissatisfaction with its local distributor. Attempts to transfer distribution rights to another local company ultimately failed to come to fruition.
Retail developments
Small local grocers represented the most significant distribution channel for cigarettes across Uruguay in 2024. These stores, present in cities, towns, and rural villages, benefit from a high level of accessibility and the ability to sell a variety of grocery items, alongside tobacco. Forecourt retailers, supermarkets, and hypermarkets also play important roles in cigarette sales. Despite Uruguay’s strong anti-tobacco policies, hypermarkets are permitted to sell cigarettes - unlike in some neighbouring countries such as Argentina. Indeed, the channel experienced the most dynamic growth in cigarette sales in 2024, albeit from a relatively low base.
What next for tobacco?
The tobacco market in Uruguay is expected to continue its decline in volume terms over the forecast period. The growing adoption of healthier lifestyles, especially among younger generations, will drive a slow, yet steady reduction in smoking prevalence. Consequently, cigarette sales volumes are forecast to keep falling, following a decade-long downward trend. Growth of the illicit trade will likely also continue to undermine legal sales, as the price gap between legal and smuggled cigarettes remains substantial.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Uruguay 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 Uruguay, 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 Uruguay 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 Uruguay?
- Which are the leading brands in Tobacco in Uruguay?
- How are products distributed in Tobacco in Uruguay?
- Which category is the most heavily taxed in Uruguay?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Uruguay?
- 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 Uruguay
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 Uruguay
KEY DATA FINDINGS
Cigarettes sales decline amid health concerns and strict legislation
Cía Industrial de Tabacos Monte Paz SA strengthens its leadership, thanks to exit of British American Tobacco
Small local grocers capture majority of sales
Health concerns will weaken legal cigarette sales
Illegal sales may be further boosted by high tax burden in Uruguay
Flavoured and capsule cigarettes expected to be key growth drivers
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Uruguay
KEY DATA FINDINGS
Sales hampered by tight tobacco legislation
Limited competition in cigars, cigarillos and smoking tobacco
Steady growth ahead for cigars, cigarillos and smoking tobacco despite regulatory challenges
Potential shift towards smaller cigars, led by the media corona
Further innovation will be stifled by tight legislation
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Uruguay
Heated tobacco products remain unavailable despite government authorisation
Sale of e-vapour products remains illegal
Philip Morris has best chances of success as British American Tobacco exits tobacco industry
Heated tobacco could be introduced, following its legalisation in Argentina
Anti-tobacco legislation will hamper future development
High device costs may limit heated tobacco adoption in Uruguay
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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