Channel: Independents

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Nicotine Category Gains & Losses

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Midyear 2014 data shows convenience stores own nearly three-quarters of the volume for the “total nicotine” category, the vast majority of which (68%) continues to come from premium cigarettes, according to a report from Management Science Associates. In MSA’s report, “total nicotine” includes cigarettes, moist smokeless tobacco, snus, large & filtered Cigars, and e-vapor products. Here are some highlights:

Midyear 2014 data shows convenience stores own nearly three-quarters of the volume for the “total nicotine” category.

A vast majority of that volume comes through premium cigarettes, which still account for 68% of all nicotine products sold in the United States. Add in discount cigarettes, and the subcategory accounts for 90% of all nicotine products. E-vapor, while growing at a phenomenal rate, owns 0.8% share as of the midyear 2014 report.

Growth in the nicotine category over the past 18 months has generally come from moist smokeless (+4%), large cigars (+8%) and, of course, e-vapor products (+56%). Areas where sales volume have slipped include snus (-4%), little cigars (-12%) and cigarettes (-4%).

While convenience stores have seen dramatic growth in e-vapor product sales over the past year (+41%), so have other channels, most notably grocery, where volume increased 104% during the second quarter of 2014 compared to the previous year, and drug stores, where e-vapor-product sales volume grew an astounding 415%, according to MSA.

Management Science Associates
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