C-store retailers are adapting to shifting tobacco trends amidst regulatory challenges while navigating economic pressures influencing customer behavior.
Today’s c-stores find themselves at the center of changing customer preferences and evolving regulatory frameworks, especially when it comes to the tobacco category, which continues to grapple with market trends and legal considerations that are impacting the very makeup of the backbar.
Amidst these challenges, convenience stores are diversifying into burgeoning market segments like foodservice and beverages, yet tobacco remains a cornerstone category, playing a pivotal role in driving foot traffic and retaining loyal, longstanding customers.
For years now, c-store retailers have watched the Food and Drug Administration (FDA) and state and local governments regulate the category with excise taxes, flavor bans, and package and advertisement warnings.
The general population’s sentiment toward tobacco has also shifted as customers have become increasingly health conscious, which has, in part, contributed to the rise of vaping devices, followed by oral nicotine pouches and cannabidiol (CBD). Even the legalization of cannabis in certain areas has affected how retailers and customers alike consider the tobacco category.
Additionally, inflationary pressures have forced some cigarette consumers to purchase lower-tier products or switch to alternate tobacco options overall. And through it all, new brands continue to emerge on the tobacco scene as retailers work to monitor evolving trends and market dynamics.
