Smoking Accessories Set to Hit $6.3 Billion by 2030

By Howard Riell | June 9, 2023

Tobacco accessories are holding their own in c-stores despite ongoing inflation and price increases in the segment and across the tobacco categories.

In fact, many convenience store retailers spy an opportunity to expand business in the accessories segment inside the 22 states (plus Washington, D.C.) where adults can buy or possess cannabis recreationally.

The convenience store channel saw smoking accessories overall notch dollar sales of $507 million, up a strong 6.6%, according to Circana Total U.S. Convenience data for the 52 weeks ending April 23, 2023. Unit sales for the category grew 3.3% for the same period. Dollar sales of lighters totaled $613 million, down 1.2%, while match sales reached $277,501, down 8.1%.

The long-term view for tobacco accessories is positive. The global smoking accessories market should hit $6.3 billion by 2030, growing at a compound annual growth rate of 6.5% between 2021 and 2030, according to an analysis of the global smoking accessories market by Allied Market Research. The category has been negatively impacted, the report pointed out, by supply chain disruption, lack of raw material availability and restrictions on the movement of goods during the pandemic.

Nissan Koroghli, a 7 Eleven franchisee whose heavily trafficked location sits near the famed Las Vegas Strip, said sales of accessories remain steady despite price increases.

His top-selling accessory is the BIC lighter, which retails for $2.49. But customers are likewise opting for lower-priced lighters at the $1 to $1.20 price point.

"I’d say prices on these items have risen by about 10% since December, due primarily to inflation. …" Koroghli said, also pointing to the steadily rising prices across tobacco product categories that can influence whether shoppers add on accessories.

Koroghli noted cigarette prices are similarly up by about 10%, to an average of $9.50 per pack and $99 per carton. He lamented the change. "I remember when I smoked a pack of Merit cigarettes was 80 cents or $1."

Circana confirmed that the prices of tobacco accessories are ticking up. Nationwide, prices on smoking accessories grew 3.2% for the 52-week period ending April 23, with lighter prices up 4.5% and the price of matches up 12%.

Despite the increases, Koroghli said he foresees no erosion of the accessories business.

"Those people who smoke have to have these items," he said.

Others see the rising cost of tobacco products as naturally leading to less spending on accessories.

"We see the category as weak and declining as Big Tobacco continues to increase prices," said Sam Odeh, president of Power Energy Corp. in Elmhurst, Ill., which has 1,359 sites in nine states, 96 of which are corporately owned under the Power Mart, Power Market and Powmaro's banners.

Lighter sales naturally decline when retail prices are high, Odeh noted. He added he has seen many customers trading down to less expensive items. At the same time, he continued, rolling paper manufacturers are introducing multiple varieties, which is driving sales up. Cartridges are also seeing business expand.

Many in the convenience store industry see an opportunity to expand the tobacco accessories category to include cannabis accessories in states that have legalized recreational cannabis. Koroghli is among those considering expansion.

"People have to have something to smoke it in, which means sales of papers will go up," he pointed out. "The same is true for pre-rolled weed cones. There are also a bunch of varieties of papers, such as natural ones."

Cannabis legalization should likewise bolster sales of vape cartridges, as well as lighters in every price range, Koroghli added.

While Ode noted that gains are being driven, at least in part, by new entrants into the category, he does not see an opportunity to expand the accessories in states that have legalized cannabis.

"Sorry to say I don't think (cannabis legalization) will have a lot of impact," agreed Steven Montgomery, president of b2b Solutions LLC in Lake Forest, Ill. "Every cannabis dispensary have seen … has had a range of accessories from cigarette papers, lighters and more to very high-end products."

While dispensaries are fully stocked with accessories themselves, c-stores bullish on accessory expansion have pointed out that cannabis customers are coming to c-stores anyway for fuel or other items and are likely to purchase accessories during a one-stop shop.