As 2025 unfolds, convenience stores continue to adapt to shifting consumer behaviors, economic pressures and emerging industry innovations.
Inflation remains high, with the Consumer Price Index (CPI) rising 3% over the 12 months ending in January 2025, compared to 2.6% in October, 2.75% in November and 2.89% in December. While this is still an improvement from the 8% and 9% inflation rates seen in 2022, consumers are still feeling the squeeze as already-high prices continue to climb.
C-store retailers are feeling the effects of inflation on the performance of a number of key categories as customers increasingly seek out value and change spending patterns in the face of continued sticker shock. While value often translates to lower prices, it can also mean higher-quality or even premium items that justify a higher spend. Euromonitor International’s “Top Global Consumer Trends 2025” listed “Wiser Wallets” as a key trend in 2025, noting that added value is a consumer expectation across the globe in 2025 amid rising costs.
However, even as costs continued to climb, economic sentiment remained strong heading into February. At press time, the CivicScience Economic Sentiment Index rolled in at 39.4 for the week of Jan. 28, 2025, down from a 12-month high of 41.4 on Nov. 5, but up from a 12-month low of 32.6 on May 21.
Convenience store retailers are leveraging loyalty programs and promotions to help appeal to cash-strapped shoppers. As they look to cut costs, customers — especially younger consumers — are less committed to specific brands. Taking advantage of this trend, more c-stores are adding private-label lines. They’re also driving excitement through limited-time offers from the foodservice menu to the snack aisle.
A recent CivicScience survey found Americans are mixed on President Donald Trump’s proposed tariffs against China, Mexico and Canada. At press time the proposed tariffs against Mexico and Canada were on hold for at least a month, but tariffs on China (of which 46% of respondents to a CivicScience poll supported) went into effect on Feb.4. If the tariffs bring higher prices, two in five respondents said they would buy a different brand, while 17% said they would stop purchasing the impacted product. Some 76% of Americans polled by CivicScience plan to cut back on at least one area if tariffs start to hurt their wallets, with fast food (50%) topping the list. Travel (39%), gasoline (19%) and grocery stores (27%) were among the other categories mentioned.
Better-for-You
Euromonitor International’s report also pointed to healthspan plans as a major trend for 2025. “Consumers are on their longevity journeys. They’re making behavioral changes now for the betterment of their future selves,” the report noted. We’re watching this play out at c-stores in terms of an ongoing health-conscious trend as consumers try out various “healthy” diets from gluten-free to keto, place greater emphasis on product ingredients, seek out better-for-you options, and increasingly reduce sugar intake. CivicScience noted those using glucagon-like peptide-1 (GLP-1) drugs to help regulate blood sugar are also shifting to healthier daily habits, which includes drinking less alcohol. That said, indulgence still matters. When customers treat themselves, they’re looking for something truly indulgent.
Other trends highlighted in the Euromonitor report included: “Ecological” — customers are more concerned about sustainability and making wise environmental choices; “Filtered Focus” — as shoppers are inundated with choices and brands compete for customer attention, clear communication and optimized user experiences are key; and “AI Ambivalent” — companies should be transparent and purposeful as they roll out artificial intelligence (AI) to maintain customer trust and find the right balance between tech and human expertise.
Regulation Relief
With a new administration in the White House, several proposed tobacco regulations have been put on hold, giving retailers a temporary — if not indefinite — reprieve from key concerns, including a federal ban on menthol cigarettes, restrictions on characterizing flavors in cigars and maximum nicotine limits for cigarettes, the latter of which has been deprioritized even as it moves into the comment period. However, state-level legislation remains a growing hurdle.
On the pages that follow, CStore Decisions’ 2025 Category Management Handbook is here to help you navigate the evolving trends across the foodservice, beverage, candy and snacks, dairy and ice cream, health and beauty, and tobacco categories. You’ll notice that this year’s Category Management Handbook has a new format. Instead of single-page snapshots of subsegments, you’ll find a deep-dive report on each category in order to bring you more in-depth information, including key trends, data and c-store retailer perspectives.
