FORECAST STUDY 2023 Deep Dive:
Tobacco
Exclusive projections and insights into the cigarettes and OTP categories at c-stores.
Nicotine products remain a very important driver of convenience store industry traffic and profits. The cigarettes and other tobacco products (OTP) categories drive roughly 20 percent of gross margins inside the store, and approximately 90 percent of all cigarette sales take place in the convenience channel. In this special “Deep Dive” report, a bonus supplement to the Convenience Store News 2023 Forecast Study, we present exclusive projections and insights into what the coming year will hold for the cigarettes and OTP categories at c-stores.
sponsored by
Regulation to Prohibit the
Use of Menthol in Cigarettes
and RYO Tobacco:
In April 2022, the FDA published a proposed product standard regulation prohibiting the use of menthol as a characterizing flavor in cigarettes, roll-your-own (RYO) tobacco, and heat-not-burn products. The public comment period ended on Aug. 2. A final rule/regulation is expected to be adopted by the FDA sometime in August 2023.
Exclusive projections and insights into the cigarettes and OTP categories at c-stores.
Regulation to Prohibit the Use of Characterizing Flavors in Cigars:
Also in April 2022, the FDA published a proposed product standard regulation prohibiting the use of characterizing flavors in cigars, except for tobacco flavor. The public comment period ended on Aug. 2. A final rule/regulation is expected to be adopted by the FDA sometime in August 2023. When the FDA issued the proposal, the agency stated that the effective date would be one year after the final rule is published.
Potential Regulation for Maximum Nicotine Level in Cigarettes
and Other Tobacco Products:
In June 2022, the FDA announced that the agency would propose a new regulation setting a maximum level of nicotine in cigarettes and certain other tobacco products. The other products that could be subject to this regulation were not specified. A proposed rule/regulation is expected to be published sometime by October 2023 and will be followed by a public comment period. When the proposed rule is published, the FDA may identify a timeframe for the new rule to go into effect.
