It’s a fact of life that every retailer understands: Cigarettes are experiencing a steady decline but remain a vital traffic driver. Other tobacco products (OTP) are picking up some of the slack, but what exactly the backbar will look like in five or 10 years is unknown.

According to the NACS State of the Industry Report® of 2023 Data, cigarettes accounted for 20.3% of in-store sales and OTP accounted for 7.3%. Data from NIQ tells a similar story: Cigarettes and OTP combined made up 34% of inside sales in 2024, with cigarettes accounting for 24.2% of that total while OTP claimed 9.9%.

Four years ago, NIQ data showed cigarettes and OTP contributing 38% to total inside sales.

According to NIQ, when it comes to unit sales, cigarettes claimed 10.7% of unit shares and OTP claimed 8.1% in 2024, for a combined 18.8%, down from 21% in 2021.

Will OTP units top cigarette units in the near future?