Modern oral tobacco increased units 44% year over year in 2024 and now makes up nearly 6% of total tobacco dollar sales, according to a new report from Chicago-based market research firm Circana.
“Modern oral tobacco has shown significant year-over-year increases in both food and convenience channels,” Circana said. “C-stores own 95% of modern oral tobacco dollar sales but mulo+ [multi outlet] is eating into share with stronger year-over-year growth.”
According to Circana data from the convenience channel for the 52-week period ending Dec. 29, cigarettes represent about 72% of the total category of dollar sales, down 4.2%. Smokeless tobacco represents growth of 13.5% capturing 14.4% of the total category of dollar sales. E-cigarette growth fell 8.4% with 8.2% of dollar sales.
Modern oral tobacco, including tobacco-free nicotine pouches, saw nearly 60% year-over-year dollar sales growth in c-stores, signaling strong momentum, Circana said.
The report said that modern oral tobacco will likely continue expanding within the tobacco segment.
“Retailers should assess assortment opportunities to capture demand as modern oral tobacco continues to show strong growth,” Circana said.
Continued regulatory pressures, on-going cigarette declines and changing consumer dynamics has put tobacco at a nexus point, Boris Oglesby, executive vice president and practice leader of alcoholic beverages and tobacco at Chicago market research firm Circana, said in an education session last September at CSP’s Tobacco Plus Forum in Schaumburg, Illinois.
With increased focus, Oglesby said the convenience channel can support the tobacco industry’s desire to provide reduced harm products and moderate category performance.
“Everybody wants to move consumers to a more reduced harm product and reduce combustibles, which are cigarettes and cigars, usage,” Oglesby said.
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