U.S. Nicotine Pouch Sales Surge, Forcing Convenience Stores to Rethink Backbar Layouts

Key Takeaways

• U.S. convenience stores are restructuring backbar displays as product mix and regulatory changes drive more space toward nicotine pouches and other modern oral products.
• The New York Association of Convenience Stores says nicotine pouch sales are up more than 40% this year, with strong momentum expected to continue next year.
• Midwestern convenience-store chain InConvenience Inc has sharply reduced cigarette display space to roughly four feet, shifting resources toward faster-growing alternatives.
• Some retailers are experimenting with zero-nicotine and herbal products, though these remain niche with limited impact on the broader tobacco/nicotine market.

2Firsts, December 4, 2025 — According to CStore Decisions, U.S. convenience retailers are reassessing their backbar layouts amid shifts in product mix and regulatory pressures, aiming to optimize space and align with evolving consumer trends.

Alison Ritchie, president of the New York Association of Convenience Stores (NYACS), said nicotine pouch sales have climbed more than 40% this year, and the category is expected to maintain strong growth into next year.

In the U.S. Midwest, the emerging convenience and fuel chain InConvenience Inc has allocated dedicated backbar space for modern oral products from the outset. Category manager Erin Slater noted that the company avoids crowding products at the traditional checkout counter, instead relying on structured backbar shelving to improve merchandising efficiency.

According to the report, the chain’s cigarette set spans roughly four feet (about 1.2 meters), significantly narrower than that of a typical convenience store.

At the same time, cigarette sales continue to decline due to high state excise taxes and restrictions on discounts and coupons. To balance revenue, many retailers are reducing cigarette facings and redirecting limited space toward higher-growth alternatives. Cigarettes remain the largest single backbar revenue category, but the downward trend is viewed within the industry as predictable and relatively manageable.

Retailers remain cautiously optimistic about vapor products and other nicotine categories. Stronger enforcement by federal, state, and local authorities could help manufacturers and marketers regain confidence in compliant products, potentially supporting a recovery in sales.

A number of more “progressive” stores are also testing zero-nicotine products and herbal alternatives such as kratom. These categories remain niche and are primarily explored by independent retailers. NYACS says it will continue monitoring regulations and consumer trends, though their short-term impact on the overall tobacco and nicotine market is limited.

Cover image: CStore Decisions