Omnichannel and Consumer View
U.S. tobacco sales, including cigarettes, cigars, smokeless tobacco, and electronic smoking devices, accounted for $84 billion across multioutlet and convenience channels. Sales declined in cigarettes and electronic smoking devices but grew in smokeless tobacco. This report examines how the industry is responding to shifting consumer behavior.
Highlights:
Despite the economy’s resilience, persistent high inflation continues to weigh on consumers, especially those aged 21 – 24 and in low-income households.
C-stores outperformed other multioutlet retailers in cigarette sales, but underperformed in other tobacco, including spitless and chewing tobacco, and papers.
Among new products tracked through MULO+C, affordable cigarettes top the list in dollar sales, but electronic smoking devices lead new offerings.
Just more than half of tobacco buyers are poly-users. Opportunities exist to promote different products for different occasions, and to add a variety to consumption.
Innovation should highlight reductions in harmful chemicals and promote positive attributes of flavors and aromas.
