2023 Trade Show: What to Watch For
By CSP Staff on Sep. 07, 2023Spicy flavors, fuel challenges, brand collaborations and more are sure to be prominent on the show floor at the 2023 NACS Show. Here’s a roundup of the trends and products CSP editors expect to see in Atlanta in October.
Behind the Counter
While there still are limited “new” products in tobacco, what’s shown at this year’s NACS Show will give attendees a glimpse into the future of what things might look like in the future behind the counter.
For example, while the products are not on the U.S. market yet, expect Altria Group to show prototypes of its heated tobacco product Swic and On Plus nicotine pouches. Philip Morris International may show what a revamped plan for its heat-not-burn product IQOS looks like. It will have full rights to commercialize the product in the United States as of April 30, 2024. And Juul may show its next-generation e-cigarette, for which it submitted a premarket tobacco product application in July.
In anticipation of the Food and Drug Administration’s rules to ban menthol cigarettes and flavored cigars, it’s likely alternatives to these products will pop up across the show floor. The FDA is also planning to announce a proposed rule to lower the nicotine level in cigarettes. That will spur a variety of manufacturers to lean on very-low nicotine cigarettes and herbal cigarettes, pouches and vapes.
CBD, or cannabidiol, products were minimal on the show floor in 2022. But it opened the door to variety of other alternative products that could fill that space: kratom, Delta-8 THC and more.
Candy and Snacks
The spice factor has stood the test of time, with countless new products taking on intense flavor profiles across salty snacks, meat snacks and even candy.
The jerky segment is growing, and not just in pack sizes. The category is estimated to surpass $9.8 billion globally by the end of 2033, according to Fact.MR, nearly doubling from its current $5.3 billion. Two of the hottest new products lean on intense space, from Jack Link’s and Frito-Lay: Doritos Spicy Sweet Chili flavored and Flamin’ Hot flavored Original beef jerky and meat sticks.
Also in meat snacks, consumer demand for healthier proteins is growing. Stryve Foods, for example, is rolling into more c-stores, providing better-for-you, air-dried jerky options.
Nonchocolate chewy candy was down 1.4% in c-store unit sales in 2022, according to Circana, but Ferrara’s SweeTarts were up 6.5%. Bite-and-tear, rope-shaped gummies, like SweeTarts Mega Ropes, might help nonchocolate unit sales in 2023. Chocolate has seen a lot of flavor and texture combination this year, so expect to see unique innovations.
Foodservice
The proliferation of new flavor offerings and mashups in both dispensed beverages and food items seems to have no ceiling and includes big names like Oreo and Snickers. In addition, healthier living and eating is big on the radar, particularly among younger people.
C-stores should respond with offerings targeting these consumers. Dash In, for example, has new offerings including the Southwest Steak and Crispy Chicken Cobb salad, and kitchen bowls such as La Cocina and Veggie Power. At the same time, however, c-stores must continue to offer old favorites but grab attention with a twist, such as the Kickin’ Chicken and Waffles at Rutter’s. Also growing is cold-beverage add-ons, such as syrups, which can be big business. At Starbucks, money generated from these modifiers has doubled since 2019 to $1 billion.
Fuels
The global goal of reduced carbon emissions is driving sales of electric vehicles and encouraging c-stores and fuel stations to make way for EV charging stalls. While most fuel marketers are confident petroleum products will continue to find a healthy market in the U.S., the promise of a more diversified transportation energy industry is spurring innovation among fueling service providers and c-store operators.
Besides government funds earmarked for EV charging stations and alternative-fuel corridors, the availability of millions of dollars in federal funds to encourage the sale of biofuels at rural convenience stores reflects the growing interest in domestic fuel production.
At the NACS Show, expect to find fuel equipment distributors, electric-charging suppliers and mobile-tech companies with strategies for drawing energy customers into the store. Education sessions will focus on ways to drive profits at the pump while meeting demands for lower emissions through alternative fuels and how best to evaluate growing trends, such as pay-by-phone and mobile apps, for the c-store operation.
Packaged Beverages
Will the energy-drink avalanche ever end? Some retailers report the segment makes up 40% of their packaged-beverage sales. Expect innovation and line extensions to be widely evident on the trade-show floor.
Elsewhere, it’s worth watching the blurring of lines among packaged beverage categories, including energy drinks, sports drinks and alcohol. Monster Beverages rolled out its first alcohol product this year, and Tapout Hydration is expanding into energy drinks.
What does this blurring mean for the c-store retailer in terms of space, organizing the shelf and more? In addition, alcohol companies are getting into the nonalcohol game, and vice versa, presenting more offerings for c-store retailers to consider.
Finally, a survey from research company Knit shows Gen Z now consumes more alcohol than it did prior to 2020, a trend c-stores should consider in terms of what they stock and how they market and advertise to this generation.
Technology
New software applications don’t have to mean more technology for c-store operators to keep up with, because many of the latest solutions combine multiple apps in one integrated platform. Loyalty programs are burgeoning in popularity, making it more important than ever to stand out. Developers are tapping artificial intelligence to better predict promotions individual consumers will act on, while c-stores are automating more tasks using AI-enabled technology to ease labor challenges.
Learn how advanced computer-vision technologies are providing valuable insights, improving the customer experience and preventing loss from theft. From robots developed for foodservice tasks to new, automated ways to determine how to allocate labor and keep the store secure, suppliers and presenters will provide tips and new tools for making c-stores operate more efficiently.
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