The Colombian economy is projected to grow by 1.6% in 2024, according to IFM estimations. Following two years of high inflation, a downward trend was noted in 2024, with inflation dropping to 5.2%, as reported by DANE (National Department of Statistics). The sluggish economic growth can be attributed to political uncertainty arising from government reforms in the labour, health, and tax sectors, alongside exchange rate volatility, susceptibility to external shocks, and a decline in exports and imports. While most sectors are experiencing some growth, key industries such as mining and manufacturing are still struggling to see positive results. Additionally, consumer confidence remains low.
Cigarettes remained the largest category within tobacco products; however, sales in the legal market continued to decline in 2024. This decline was driven not only by a continued decrease in smoking prevalence and growing social rejection of cigarette use, but also by the rising popularity and accessibility of vapour products, which offer consumers a wide variety of price points and flavours. Additionally, the cigarette category saw limited innovation during the year, further contributing to its declining appeal.
The Colombian tobacco market remains dominated by British American Tobacco Colombia and Philip Morris Colombia SA. British American Tobacco retained its leadership position in 2024, with its premium brand Lucky Strike gaining market share despite consumers tightening their budgets. The company is also a significant player in e-vapour products with Vuse and Vuse Go, focusing innovation in this area throughout 2024. Meanwhile, Philip Morris, which operates in both cigarettes and heated tobacco products, has lost market share; however, its economy segment cigarette brand, L&M, managed to maintain its sales levels from the previous year thanks to the popularity of flavour capsules, which are more commonly offered in premium products.
The retail landscape has remained relatively stable over the review period, with cigarettes and e-vapour products relying on different distribution channels. Small local grocers remain the primary distribution points for cigarettes in 2024, but they are gradually losing share to discounters and convenience stores. E-vapour products, meanwhile, are distributed through e-commerce, company-owned shops, and convenience stores, each holding a similar market share.
Volume sales of cigarettes in Colombia are expected to continue to contract over the course of the period due to the reduction in smoking prevalence and competition from alternative tobacco and nicotine products. Innovation will continue to focus on offering low prices and developing new flavours to attract consumers. In addition, advanced technologies typically found in the premium segment are expected to be increasingly incorporated into lower-priced cigarettes.
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Understand the latest market trends and future growth opportunities for the Tobacco industry in Colombia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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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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