industry report 2021 deep dive:
tobacco
Exclusive data and analysis of the cigarettes and OTP categories at convenience stores.
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0.0%
0.2%
5.1%
15.6%
79.1%
Cigars
Papers
Electronic cigarettes
Pipe/cigarette tobacco
Smokeless
2015
2016
2017
2018
2019
3.22%
3.19%
3.17%
3.13%
3.17%
2015
2016
2017
2018
2019
42.49%
48.26%
48.62%
2015
2016
2017
2018
2019
3.5%
2.8%
1.6%
0.1%
4.0%
Share of in-store sales
Margin percentage
Percent change in total sales
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Five-Year Trend: Candy
Candy's total industry sales growth of 4 percent in 2019 was the category’s largest increase in the last five years.
Just shy of one-third of c-store shoppers purchase cigarettes in an average month.
47.00%
49.02%
2015
2016
2017
2018
2019
3.22%
3.19%
3.17%
3.13%
3.17%
2015
2016
2017
2018
2019
42.49%
47.00%
48.26%
48.62%
49.02%
2015
2016
2017
2018
2019
3.5%
2.8%
1.6%
0.1%
4.0%
2015
2016
2017
2018
2019
2.73%
2.74%
2.81%
2.85%
2.87%
2015
2016
2017
2018
2019
31.47%
36.60%
37.86%
38.30%
38.05%
2015
2016
2017
2018
2019
5.8%
4.4%
4.5%
2.9%
3.6%
4.5%
Candy rolls, mints, drops
UNIT VOLUME
UNIT VOLUME
15.6%
Gum
UNIT VOLUME
UNIT VOLUME
Bagged/
repackaged peg candy
43.6%
24.7%
Chocolate bars/packs
8.4%
Non-chocolate bars/packs
UNIT VOLUME
Novelties/
seasonal
3.2%
UNIT VOLUME
Mixed
4.3%
UNIT VOLUME
9.7%
Puffed
cheese
UNIT VOLUME
16.2%
Nuts/
Seeds
UNIT VOLUME
20.1%
Tortilla/
corn chips
UNIT VOLUME
Potato
chips
26.4%
UNIT VOLUME
Popcorn (ready-to-eat)
3.7%
UNIT VOLUME
Pretzels
3.1%
UNIT VOLUME
Other salty snacks
8.4%
UNIT VOLUME
2015
2016
2017
2018
2019
1.09%
1.11%
1.10%
1.10%
1.11%
2015
2016
2017
2018
2019
35.91%
43.70%
44.09%
43.43%
43.41%
2015
2016
2017
2018
2019
8.4%
6.0%
1.4%
1.8%
2.8%
49.4%
Meat snacks
32.5%
Health/ energy bars
UNIT VOLUME
13.2%
Granola/
yogurt bars
UNIT VOLUME
4.9%
Other alternative snacks
UNIT VOLUME
The Consumer View
-2.9%
-1.5%
1.1%
1.4%
3.5%
-2.8%
-3.4%
-5.5%
-3.2%
-1.0%
14.42%
14.63%
14.12%
14.82%
15.20%
12.8%
THE CONSUMER VIEW
After 10 years of sitting on its menthol report, the Food and Drug Administration (FDA) gave notice that it will be taking steps to ban menthol as a characterizing flavor in cigarettes, and ban all characterizing flavors — including menthol — in cigars within the next year. Any regulations are sure to face legal challenges.
Maine is the latest state to consider banning all flavored tobacco product sales. California's ban is on hold as the issue waits to hit the ballot in the November 2022 general election, and Connecticut's General Assembly Finance Committee recently revised legislation to prohibit only the sale of flavored electronic cigarettes and vapor products, amending an original proposal to apply a ban to all flavored tobacco products. Such moves could be moot if the FDA moves forward with its plans.
The Biden Administration is reportedly exploring the idea of requiring tobacco companies to lower nicotine to levels that are no longer addictive. The move would affect all cigarettes sold in the United States. Changes to traditional cigarettes would come at a time when sales are experiencing lower annual declines. Many industry insiders point to an increase in smoking as COVID-19-related closures saw more people working from home — where there aren’t smoking restrictions.
Lawmakers continue to level the playing field by applying existing tobacco regulations to electronic cigarettes and vapor products. The latest example is subjecting the segment to the same ID requirements as in-person sales. Late last year, Congress passed the Preventing Online Sales of E-Cigarettes to Children Act, which applies the same safeguards already in place for traditional cigarettes and smokeless tobacco products. Subsequently, several federal legislators joined together to introduce the Tobacco Tax Equity Act of 2021 in the U.S. Senate and the House of Representatives in April. The bill would establish the first federal electronic cigarette tax, and increase the tobacco tax rate for the first time in a decade.
Lawmakers continue to level the playing field by applying existing tobacco regulations to electronic cigarettes and vapor products. The latest example is subjecting the segment to the same ID requirements as in-person sales. Late last year, Congress passed the Preventing Online Sales of E-Cigarettes to Children Act, which applies the same safeguards already in place for traditional cigarettes and smokeless tobacco products. Subsequently, several federal legislators joined together to introduce the Tobacco Tax Equity Act of 2021 in the U.S. Senate and the House of Representatives in April. The bill would establish the first federal electronic cigarette tax, and increase the tobacco tax rate for the first time in a decade.
Lawmakers continue to level the playing field by applying existing tobacco regulations to electronic cigarettes and vapor products. The latest example is subjecting the segment to the same ID requirements as in-person sales. Late last year, Congress passed the Preventing Online Sales of E-Cigarettes to Children Act, which applies the same safeguards already in place for traditional cigarettes and smokeless tobacco products. Subsequently, several federal legislators joined together to introduce the Tobacco Tax Equity Act of 2021 in the U.S. Senate and the House of Representatives in April. The bill would establish the first federal electronic cigarette tax, and increase the tobacco tax rate for the first time in a decade.
27.43%
28.50%
27.38%
29.82%
30.11%
5.3%
5.5%
0.8%
9.0%
6.8%
31.02%
29.15%
30.75%
27.65%
28.06%
8.12%
6.84%
7.74%
5.62%
5.16%
