For years, tobacco accessories—a category that covers a litany of products, from lighters to roll-your-own papers to hookahs—catered to traditional tobacco users.
Smokers reflexively reach for lighters or matches as they pay for cigarettes or cigars at convenience store counters. In fact, this relationship has prompted sports teams, music groups, and television shows to expand their brands by advertising their highly recognizable logos on lighters.
Then there are smokers who prefer loose tobacco and who regularly buy roll-your-own (RYO) papers.
Of course, customers still engage in these shopping habits, but within the past several years, consumers’ smoking options have expanded to include vaping, e-cigarettes, hookahs, and even legalized recreational marijuana in a few states. This expansion has generated a much more diverse category of tobacco accessories.
“When you factor in all the items, brands, and brand styles that make up the accessory category, you end up with a lot of SKUs,” said Tim Greene, category director for The Cigarette Store Corp., dba Smoker Friendly, based in Boulder, Colo. The company, which also operates Gasamat c-stores, runs 88 sites in five states. “[Last year] was a good year. We saw a 10% increase in dollar sales and a slight increase in margin. Aside from hookah accessories, we recognized increases in all areas of the tobacco accessory category.”
Lighters retain top position in the category, and they experienced another year of positive revenue. According to IRI data, BIC USA remains the industry leader, accounting for more than $534 million in dollar sales for the 12-month period ending Nov. 29, 2015, an 8.04% increase over the same period last year. Unit sales registered 4.82% growth.
BIC has gained positive traction in retail channels after rolling out its signature series of specialty disposable lighters, which include the Supernatural Fantasy Series, Urban Music Series, Motors Series and Bohemian Series
Playa Del Rey Sunglasses Lighters posted $18.4 million in dollar sales for the 12-month period ending Nov. 29, 2015, a 33.79% annual increase over the same period in 2014. Unit sales increased 29.13% over the previous period.
LA Lighter Inc. showed a similar percentage increase in dollar sales with a 32.30% spike over 2014, tallying $5.6 million in dollar sales for the 12-month period ending Nov. 29, 2015.
HEMP APPEAL
In Colorado, where recreational marijuana has been legally sold since 2014, consumers appear to be particularly interested in cannabis-related items.
“The legal recreational marijuana stores we speak to say disposable pipes are their top-selling paraphernalia item. About half of their customers are tourists, who need an affordable way to use the cannabis they purchase that is also easy to discard before leaving the state,” said Jessica Rabe, assistant vice president and research associate for Convergex.
However, Rabe also notes that most cannabis shops limit their selection of accessories. “Instead, they recommend other merchants who sell those types of products in the area,” she said.
“We noticed an increased demand for hemp rolling papers, so we have expanded our hemp offering,” said Greene.
Looking ahead for the remainder of 2016, Greene predicts a profitable marketplace for his stores. “I believe we will continue to see the accessory category grow and I’m expecting another positive year with double-digit increases,” he concluded.
Tobacco Accessories Sales Lighting Up
BIC remains a main market force, but other brands, such as Playa Del Rey Sunglasses Lighters, posted greater gains for the 52-week period ending Nov. 29, 2015.
Brand |
Dollar Sales |
Dollar Sales % Change |
Unit Sales |
Unit Sales % Change |
Average Price per Unit |
BIC USA Inc. Lighters |
$534.5 |
8.04% |
330,029,888 |
4.82% |
$1.62 |
Playa Del Rey Sunglasses Lighters |
$18.4 |
33.79% |
18,394,434 |
29.13% |
$1.00 |
LA Lighter Inc. Lighters |
$5.6 |
32.30% |
3,413,057 |
8.72% |
$1.65 |
Source: IRI; Total US Conv., Rolling 52 Weeks Ending Nov.29, 2015