Find out which areas are sparking interest in 2022
1. The tobacco overall category has shown growth in the latest 12 weeks vs the 12 weeks prior
2. E-cig sales are up 49% YOY in convenience
3. The tobacco accessories market is now worth over £314m (up 5.3%)
1. The tobacco overall category has shown growth in the latest 12weeks compared to the 12 weeks prior
"Comparing the latest 12 weeks this year vs the 12 weeks prior this year, sales performance is much more positive; up 3%. Case volumes were also up a similar number (+2%) but the number of buying customers tailed off slightly (-3%) – indicating that whilst there are less engaged customers, average sale per customer is positive."
"We're selling a lot of tobacco at the minute," says owner Tahir. "No one is going on holiday so they're not bringing it back." He has also expanded his vaping offer due to strong sales. The increase in sales of tobacco retailers has led to a significant increase in the demand for cigarette display stands.
2. E-cig sales are up 49% YOY in convenience
E-cigs, which includes vaping and heated tobacco products, is the most buoyant area within the total category, claims SalesOut. "On a YOY basis, sales are up a huge 49% with volume sold also up notably (+20%)," says Vallance. "The reach of e-cigarettes in the market is also gaining traction with the number of buying customers up 9%. The results are very much reflective of how the wider market is viewing the e-cigarette category right now in terms of future focus, investment etc.
"Last year, the number of buying customers in e-cigarettes represented just under 50% of the total number of customers buying into standard cigarettes. Now that number stands at 60% this year – a huge 10%pts increase in just one year."
JTI claims that by June 2021 the vaping category had grown to £318m in traditional retail. "The vaping category remains a key category for retailers, with strong year-on-year growth," says Gemma Bateson, head of reduced risk products at JTI UK. "Closed tank devices, or pod mods are currently the fastest growing vaping segment in the UK, as well as the biggest segment within the category for value sales. Vapers are looking for convenient and easy-to-use devices that they can experiment with in terms of flavours and strengths to find the right fit, making these devices an important must-stock."
Overall, pod mod systems like myblu are becoming increasingly popular thanks to their ease of use and flexibility, concurs Imperial. "Whilst open systems have traditionally dominated the vaping category (currently making up 76% of the market [ITUK Estimates June 2021]), the introduction of pod mod devices in recent years has seen closed systems, such as myblu, continue to trend upwards, regaining its share of the category back towards 24% [ibid]," says Duncan.
3. The tobacco accessories market is now worth over £314m (up 5.3%), driven by filters
The tobacco accessories market is now worth over £314m in the UK [IRI 52 w/e 11/07/2021] - with increasing pressure on suppliers to innovate to make their mark in the category.
The market has seen YOY growth of 5.3%, with filters leading the way, worth £100m and growing at 4.7% YoY, bolstered by a raft of innovative new product development.
"Effective product display is an important consideration in this category for driving awareness and demand, particularly if you are looking to increase profits by stocking a range of products that deliver on quality and brand assurance," says Gavin Anderson, head of sales at Republic Technologies UK. Counter-top units are available for the firm's Swan Menthol Filters range and OCB Slim & Tips.
Accessories sell well at Spar Hamstead. "We have a full range," says Joy. "We do Rizla papers and Raw accessories - roach cards sell well and filters sell incredibly well."
She adds that Rizla menthol cards are popular too.
