CSP Magazine

Tobacco: Smoke Signals

Reports of cigarettes’ demise have been greatly exaggerated

Yes, cigarettes are declining in sales and margin. But in defiance of the surgeon general, your customers are issuing their own warning: Don’t dis the smoker.

Electronic cigarettes and vaping are growing, but the CSP-Technomic study shows that cigarettes remain the stealthy bull of this broader tobacco category, with 90% of tobacco consumers purchasing them at least occasionally, followed by cigars (19%), e-cigarettes (18%) and e-liquids and chewing tobacco (16% each).

As for e-cigarettes, proceed with caution, because buys haven’t risen overall since 2012. Still, 31% of shoppers say they’re purchasing them more frequently today. And it’s very clear that the world of vaping is undergoing dramatic shifts.

Back to smokes: Ignore crowd-pleasing tobacco brands at your own peril. Most tobacco purchasers (57%) are fiercely loyal and frequent only c-stores that carry their favorite brands.

That doesn’t mean you should skimp on other brands. Despite this habit of purchasing only a few of the predictable products, consumers say they yearn for a wider array of smokes and flavors. If you want to impress 18- to 34-year-olds in particular, offer a greater variety of tobacco products (63% of Gen-Z and millennials wish c-stores did just that) and more flavors for e-cigarettes and other vaporizer products (60%).

And keep in mind that super-heavy shoppers are more likely than moderate or light users to covet diversity in these offerings.

However you stock products, remember that the tobacco segment is your No. 1 customer purchase.

Click here to view the supporting data for this analysis.

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