US convenience retailers plan 11.3% more nicotine pouch shelf space in 2026

US convenience retailers intend to give nicotine pouches 11.3% more shelf space this year, according to Goldman Sachs’ third-quarter 2026 Nicotine Nuggets survey of about 40,000 retail locations.

Managing Director Bonnie Herzog said nicotine pouches take the largest share of incremental nicotine shelf space. Only 14% of respondents reported a more negative outlook on the total nicotine category over the past few months.

Space shifts toward pouches while cigarette volumes keep falling

The shelf-space figure sits inside a wider rebalancing of the backbar. 2Firsts reported that US convenience-store operators are cutting cigarette space to make room for modern oral nicotine products, citing CSP Daily and CStore Decisions reporting.

Circana data cited by 2Firsts put US convenience-store cigarette sales at US$11.1 billion in the 12 weeks to 22 March 2026, up 1.6% year on year, while unit sales fell 4% and average prices rose 5.9%. Revenue growth in that window therefore came mainly from price.

Promotions in pouches are intensifying as manufacturers chase share

Herzog said wholesalers and retailers broadly reported more nicotine pouch promotions as manufacturers rush to gain share in a fast-growing category. One respondent described the category as a race to the bottom, and another said every product on the market carries some form of promotional discounting.

Demand signals differ by store. Herzog cited one retailer who said total trips have fallen while nicotine purchases appear resilient and continue to improve in that chain.

Higher fuel prices weigh on store traffic for lower-income shoppers

Respondents described the retail environment as stable despite consumer concerns and pressure from higher gas prices. Herzog said several pointed to fuel costs squeezing sales and pushing lower-income shoppers toward cheaper options.

One respondent said fuel-related costs continue to burden lower-income consumers, while another saw declines across income groups as gas prices weigh on in-store sales.

New York retailers pair space changes with contract incentives

Retailer accounts from New York describe a similar shift. Alison Ritchie, president of the New York Association of Convenience Stores, told CStore Decisions that members are optimistic about the tobacco and nicotine category heading into 2026, and that the nicotine pouch category is up more than 40% this year.

Ritchie said many New York retailers are giving more space to nicotine pouches as other segments decline, and are using manufacturer contract incentives to fund the change. She attributed pressure on traditional products such as cigarettes to high excise taxes and restrictions on coupons and discounts.

Circana data cited by CStore Decisions showed smokeless tobacco sales rising in the 12 weeks to October 2025, led by spitless tobacco. Cigarettes remain the highest-grossing tobacco product in convenience stores, according to Ritchie.

The surveys differ in scope and date: the Goldman Sachs findings cover the third quarter of 2026 across about 40,000 US locations, while the CStore Decisions interviews date from late 2025 and focus on New York operators. The two sets of figures are not directly comparable.

Who is affected

Convenience retailers and their wholesalers carry the direct planning burden, since shelf resets and promotional calendars follow the space shifts. Manufacturers of nicotine pouches face heavier promotional spending as they compete for the added space.

For suppliers in the Shenzhen vape supply chain, the signal is about shelf competition rather than vaping itself: pouch growth and cigarette decline shape how much backbar room remains for vapour products in US c-stores. VapeBrief’s analysis is that suppliers selling into US convenience channels should expect category managers to review vapour facings alongside pouch expansion, though the survey data here covers nicotine pouches and does not report vapour space.

What happens next

Goldman Sachs’ next Nicotine Nuggets survey, covering the fourth quarter of 2026, will show whether the planned 11.3% pouch expansion was actually executed and whether promotional intensity eased.

Questions readers ask

How much more shelf space will US retailers give nicotine pouches?

Retailers surveyed by Goldman Sachs for the third-quarter 2026 Nicotine Nuggets report expect to increase nicotine pouch shelf space by 11.3% this year, the largest incremental gain in the nicotine category.

Are cigarette sales still growing in US convenience stores?

Circana data cited by 2Firsts show cigarette sales values rose 1.6% to US$11.1 billion in the 12 weeks to 22 March 2026, while unit sales fell 4% and average prices rose 5.9%.