Displays and sales of tobacco accessories at convenience stores are shifting as c-stores incorporate new items to meet customer demands. The evolution mirrors the changing algebra of the tobacco category as a whole.

A nationwide drop in cigarette smoking; the growth of smoke shops, dollar stores and cannabis-related products; rising taxes; increasingly restrictive legislation; and differences in regional markets are all contributing to the changing fortunes of this must-have category of products.

In the convenience store channel, dollar sales of smoking accessories, including pipes and other items, totaled $430 million, up 4.2% for the 52 weeks ending April 17, 2022, according to Chicago-based research firm, IRI. 

But unit sales rolled in flat, up just 0.3%. Sales of lighters totaled $625 million, up slightly by 0.3%, while unit sales fell 6%. Matches topped $309,000 in sales, but were down 17.8% versus the previous period, with unit sales falling 24.1%.

Competition is one factor impacting sales of tobacco accessories. 

“Here in California, you have smoke shops that sell these items, and in so many examples they are next door to convenience stores on every block,” said veteran convenience store operator Amer Hawatmeh, the longtime president of 52-store St. Louis-based St. George Oil and most recently Coast to Coast Bodega in Santa Clarita, Calif. “But for our industry, wraps and different lighters — cheap lighters — always sell.”

Major shifts continue to impact the tobacco category overall. The tobacco category is shrinking, taxes on tobacco products are growing, cannabis is becoming legal in more states, and vape and organic-smoking SKUs are getting more space on the backbar, Hawatmeh pointed out. 

These changes are opening the door for sales of unconventional tobacco accessories, from pipes to screens to grinders and vaporizors. Accessories can also help grow basket sizes as sales dip in other areas. 

Tobacco accessories remain an important segment, generating strong sales and high profit margins for retailers, Hawatmeh noted. 

“Every store around the country should be focused and adding all these items into their mixes to add sales,” he said. “Where there is no competition for these items, be the leader and do it strong.” 

And, it’s not just tobacco that’s evolving. At c-stores, every item from gas to candy is in transition, Hawatmeh added. “Moving and adding big-ticket items is what every owner and company should be seeking.” 

Sharan Kalva, the chief operating officer of Huntsville, Ala.-based C-StoreMaster, a national distributor of convenience store products specializing in the tobacco and beverage categories, said he sees overall unit sales growth in the tobacco accessories category of 6.39%. 

“We are seeing a steady decline in traditional tobacco accessories like ashtrays, matches and rolling paper at a rate of 1.07%,” Kalva said. “We are seeing an increase in unconventional tobacco accessories like vaporizers, water pipes and grinders at a rate of 16.09%.”

The factors behind the changes, Kalva continued, include hemp consumption moving from plant-based smoking to vaping, pill, gummies and tinctures, and cigarette volume shrinking year over year. 

A proprietary breakdown of unit sales by subcategory shows:

“Medical and recreational marijuana and increased hemp usage will sharply fuel the growth of rolling papers, water pipes, lighters and vaporizers going into the future,” Khalva added.

  “We are seeing the accessories category grow depending on the area we are servicing,” said Chad Owen, president of Chambers & Owen Inc., in Janesville, Wis., a U.S. convenience store distributor, supplying customers in Wisconsin, Minnesota, Michigan, Illinois and Iowa. “Accounts in Illinois, where marijuana has been legalized, are doing very well. We are also seeing that spill into border areas/cities around states — for our purpose, Illinois — that have legalized it. Consumers seem to like to try new accessories.”

Owen added that it is difficult to talk about the growth of the lighter category as that was greatly affected by lingering supply chain issues in 2021.

“All of the other areas have seen some nice growth that can be attributed to them,” Owen said. 

“We have not gotten into the glassware/water pipes arena yet,” he added. “With the way the category seems to be moving, it may not be long though.”

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