Summary

Argentina has experienced economic fluctuations and periods of instability, which can lead to price sensitivity among consumers. Cigarettes can be perceived as a relatively affordable source of pleasure, especially when compared to other recreational activities. Smoking has been a part of Argentine culture for many decades, with a long history of tobacco consumption. This cultural acceptance can contribute to a steady demand for cigarettes. Argentina has a well-established tobacco industry, with several domestic and international tobacco companies operating in the country. These companies often invest in marketing and distribution efforts to maintain and expand their market share. Regulatory measures, such as taxation and smoking bans, can influence the cigarette market. While Argentina has implemented some tobacco control policies over the years, they have not been as stringent as in some other countries, allowing the market to continue growing. The prevalence of smoking among the Argentine population can impact market growth. If a significant portion of the population continues to smoke, it can sustain demand for cigarettes. The price elasticity of demand for cigarettes can play a significant role in market growth. If the demand for cigarettes in Argentina is relatively inelastic, meaning that consumers are less responsive to price changes, tobacco companies have more flexibility in raising prices, contributing to revenue growth. The legal framework surrounding tobacco in Argentina impacts market growth. Regulations related to packaging, health warnings, and advertising can influence consumer perceptions and behaviour. Changes in these regulations can affect the market. The initiation of smoking among young people can be a key driver of market growth. If there are a significant number of young people taking up smoking, it can sustain the market even if older generations are quitting or reducing their consumption. The initiation of smoking among young people can be a key driver of market growth. If there are a significant number of young people taking up smoking, it can sustain the market even if older generations are quitting or reducing their consumption.

According to the research report "Argentina Cigarette Market Overview, 2028," published by Bonafide Research, the Argentina Cigarette market is expected to reach market size of more than USD 1.20 Billion by 2028. With higher disposable incomes, consumers find it more affordable to purchase cigarettes and other tobacco products. Tobacco is often considered a discretionary expenditure, and when people have more money available, they allocate a portion of it to tobacco consumption. The price elasticity of demand for tobacco products can influence consumption patterns. If tobacco prices remain relatively stable or increase at a slower rate compared to rising incomes, it could encourage continued or even increased consumption. As disposable incomes rise, some consumers shift from lower-priced to premium or imported cigarette brands. This shift can result in increased spending per pack, benefiting the tobacco industry. Economic conditions in Argentina can impact consumer behaviour. If economic challenges, such as inflation or unemployment, persist, consumers seek ways to reduce their expenses. Choosing ultra-low-cost cigarettes can be a way to maintain the habit while managing costs. Ultra-low-cost cigarettes can be particularly appealing to young and new smokers who are price-sensitive and looking for an affordable entry point into smoking. This demographic contribute to the growth of these brands. Flavored cigarettes come in a variety of flavors, such as menthol, fruit, and mint, which can make smoking a more palatable and enjoyable experience for some individuals, especially younger smokers. The variety of flavors can appeal to different taste preferences.

Medium cigarettes are often marketed as having lower tar and nicotine levels compared to regular or full-strength cigarettes. Some consumers perceive them as a potentially less harmful option, which can make them more appealing to health-conscious smokers. Medium cigarettes offer a middle-ground option between strong cigarettes and ultra-light or menthol cigarettes. Smokers who find regular cigarettes too strong and light cigarettes too weak prefer medium cigarettes for their balance of flavor and nicotine. Medium cigarettes be priced competitively, making them an attractive choice for price-sensitive consumers. Smokers looking to save money on tobacco products opt for medium cigarettes over more expensive options. The availability of medium cigarettes in Argentina's retail outlets, including convenience stores and specialty tobacco shops, can influence their market share. Widely distributed products are more likely to attract consumers. Medium cigarettes have been positioned to comply with specific regulations, such as restrictions on marketing or labeling. Compliance with regulations can ensure that these products remain on the market. Argentina shares borders with several countries, including Paraguay and Uruguay, where cigarettes be available at lower prices due to differences in taxation and regulation. This cross-border trade can influence consumer choices and contribute to the popularity of medium cigarettes.

Convenience stores live up to their name by offering a convenient and easily accessible shopping experience. They are often open extended hours, if not 24/7, making it convenient for smokers to purchase cigarettes at any time. Convenience stores typically experience high foot traffic due to their strategic locations in urban and suburban areas. This foot traffic can attract impulse buyers, including cigarette smokers who decide to purchase cigarettes while visiting the store for other items. Convenience stores offer a wide range of products beyond cigarettes, including snacks, beverages, and everyday essentials. Smokers can conveniently purchase cigarettes along with other items they need, making it a one-stop shopping destination. In some cases, younger smokers who not have access to specialty tobacco shops rely on convenience stores as their primary source for purchasing cigarettes. Convenience stores are often well-versed in and compliant with local tobacco regulations, including age verification requirements. This ensures that they can legally sell tobacco products. Convenience stores offer promotions, discounts, or bundle deals that attract price-sensitive consumers looking for cost-effective cigarette options. Convenience stores typically offer a variety of pack sizes, catering to different consumer preferences. This variety allows smokers to choose the pack size that best suits their needs.

Considered in this report:
• Geography: Argentina
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• Argentina Cigarette market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Light
• Medium
• Others

By Distribution Channel
• Speciality Store
• Hypermarket/supermarket
• Convenience Stores
• Online
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Cigarette industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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