The tobacco market in Argentina experienced a notable decline in volume terms in 2024, driven primarily by a sharp drop in cigarettes sales and a deep contraction in the consumption of cigars and cigarillos. This downturn was largely attributable to a significant reduction in the purchasing power of middle- and low-income consumers, who were particularly affected by the country’s ongoing economic crisis. Meanwhile, smokeless tobacco, e-vapour products and heated tobacco remain illegal in Argentina, despite government attempts to legalise their sale.
Within the context of surging inflation and a steep decline in consumer purchasing power, the Argentine cigarettes market - comprising the majority of tobacco sales - suffered a weak performance in volume terms in 2024. This was largely driven by a shrinking population of cigarette smokers, as well as a shift in consumption towards fine cut tobacco, which gained traction due to its more affordable pricing and a broad variety of brand options.
Massalin Particulares SA, the primary operational arm of Philip Morris International in Argentina, continued to lead the country’s tobacco market in 2024, having maintained an aggressive pricing strategy to compete with domestic brands. Additionally, Massalin has streamlined its cigarette portfolio in recent years, competing in the premium segment with Parliament; the mid-priced segment with Philip Morris, Marlboro, and Harmony; and in the value segment with the newly launched Marlboro Crafted - introduced to replace the discontinued L&M brand and target ultra-low-priced competitors. Innovation remained a core part of the player’s strategy. In April 2024, Massalin introduced Marlboro Vista Fusion 3, a flavoured capsule cigarette, followed by the launch of Chesterfield Coral Motion in June 2024, both aimed at younger consumers.
Small local grocers remain the primary distribution channel for tobacco products in Argentina, particularly for cigarettes. However, the ongoing economic crisis has led many smokers to reduce their visits to convenience stores and forecourt retailers, shifting purchasing habits. By contrast, food, drink, and tobacco specialist stores increased their market share of smoking tobacco sales over the review period, benefiting from more targeted offerings and price-sensitive consumers.
Argentina’s projected economic recovery - characterised by declining inflation and moderate GDP growth over the next two years - could support a gradual rebound in the tobacco market over the forecast period. As real incomes begin to recover, demand for mid-range and premium tobacco products may improve, reversing the downtrading trend seen during the financial crisis.
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Understand the latest market trends and future growth opportunities for the Tobacco industry in Argentina with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
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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.
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