Boston, MA -- (SBWIRE) -- 08/12/2014 -- The excise tax of MX$7.00 on 20-unit cigarette packs, which came into effect in 2011, resulted in a unit price increase of almost 30% in current value terms during that year. Moreover, instead of reducing the consumption of cigarettes, manufacturers argued that this rather drove up sales of illicit cigarettes to 15% of the market in 2012. This certainly led to a drop in volume sales of established brands, in the face of which manufacturers decided to implement alternative strategies to cope with this decline.

Among these strategies were stronger advertising of 14-unit packs to prevent trading down to cheaper brands. Leading brand Marlboro had containers with display areas installed in many small independent grocers and convenience stores in Mexico, in which the advertising of 14-unit packs can be prominently seen. Also, larger pack sizes with longer cigarettes (100s size) gained presence on retail shelves as they provide a higher value-per-price ratio to consumers. Some other strategies include the launch of special editions, such as the traditional brand Faros, which revived its image with beautifully decorated metal cases in limited editions during the 2011-2012 period.

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Industry Prospects:

In the coming years it remains quite uncertain what will happen with tobacco-related taxes, in spite of all efforts made by large companies to push against them. Higher unit prices on tobacco products are still set to trigger the sales of illicit products to the detriment of the well-established industry, causing a significant loss in tax collection. This will naturally have a negative impact on the use of folding cartons and flexible packaging, which will also experience lower demand.

Report Overview:

Discover the latest market trends and uncover sources of future market growth for the Tobacco Packaging industry in Mexico with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Tobacco Packaging industry in Mexico, our research will save you time and money while empowering you to make informed, profitable decisions.

The Tobacco Packaging in Mexico market research report includes:

- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes in units and filled volumes
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

- What is the total unit volume of tobacco packaging in Mexico?
- What are the major tobacco pack types in Mexico?
- How is legislation impacting on cigarette pack size in Mexico?
- How is consumer shift between soft and hard packs affecting the pack mix?
- What are the most dynamic pack types within tobacco?

Reasons to Get this Report:

- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions

Product coverage: Cigarettes, Cigars, Smokeless Tobacco, Smoking Tobacco.

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.

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