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Cigarettes in El Salvador, 2018

Cigarettes in El Salvador, 2018

Summary

The market for cigarettes in El Salvador has long been characterized by a sizeable non-duty paid market. This report deals only with the legitimate duty paid market, with figures largely based on apparent consumption trends. Trade sources suggest that the black market through the late 1990s and around the turn of the millennium accounted for up to 35% of cigarette consumption. In more recent years, the legitimate market appears to have increased its share of total consumption, although contraband remains an ever present feature and appears to have strengthened in the years since 2012.

El Salvador is the smallest country in Central America, but has one of the largest economies in the region and a population of just under 6.2 million people. Cigarette consumption in the legitimate duty paid market was estimated at 0.6 billion pieces in 2017, 61.7% down on 1990 levels. Contraband has been a sporadic problem for the market, re-asserting its presence since 2012 and leading to a subsequent collapse in duty paid sales. In per capita terms, consumption was low at 99 pieces per capita per year in 2017.

Scope

- The market is dominated by PMI and BAT, with these two companies effectively accounting for 100% of sales.
- BAT sources its products from Honduras, whilst PMI sourced its products from Guatemala until 2013, when it switched production to Costa Rica.
- In both cases, there is no significant price disadvantage to the consumer as both production facilities lie within the CACM area and consequently are not subject to import tariffs.
- With both companies using regional production strategies, they are both able to achieve tangible benefits from economies of scale.

Reasons to buy

- Get a detailed understanding of consumption to align your sales and marketing efforts with the latest trends in the market.
- Identify the areas of growth and opportunities, which will aid effective marketing planning.
- The differing growth rates in regional product sales drive fundamental shifts in the market.
- This report provides detailed, authoritative data on these changes - prime intelligence for marketers.
- Understand the market dynamics and essential data to benchmark your position and to identify where to compete in the future.
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Cigarettes in El Salvador, 2018
Published By :GlobalData
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