Category Trends
Consumers are increasingly moderating caffeine intake, driving growth in decaf coffee and alternative energy drinks. Spins data shows decaf beans and grounds sales rose 5.3% and ready-to-drink decaf coffee grew 25.7% over the past year. Brands like Lowkey Coffee and Update are capitalizing on the trend, offering premium decaf options and functional beverages with ingredients like paraxanthine and L-theanine. While unlikely to overtake mainstream caffeine, the rapid growth could unlock new opportunities in the mature energy drink market dominated by Celsius and Monster.
Overall candy sales rose 6.2% across all retailers but fell 0.2% in c-stores, according to Circana. To boost candy sales, c-stores can embrace innovative products in three fast-growing trends: gummies (especially sour), texture mashups, and Swedish candy. Examples include Haribo Balla Bites, Skittles Gummy Crystals, Reese's Pieces with Chocolate Cookie, and Bubs Swedish candy.
Spinx rolled out THC beverages quietly in fall 2024, generating over $267,000 in the first three months and more than $1.8 million company-wide. With zero marketing hours, the retailer relied on word of mouth and in-store placement. Despite a looming federal ban on Dec. 11, Spinx projects $2.3 million in sales next year if products remain legal. The convenience retail industry saw 74% year-over-year growth in THC beverage sales, according to NielsenIQ, giving c-stores a nearly 25% market share.
Alimentation Couche-Tard achieved its fifth consecutive quarter of U.S. same-store merchandise sales growth in the first quarter of fiscal 2027, with a 1.7% year-over-year increase and 1.6% global network growth. Despite economic headwinds and weak consumer confidence, the company maintained growth momentum through food service innovation and category optimization.
Juul Labs announced on Friday that its Juul2 e-cigarette device and accompanying tobacco and menthol-flavored pods have received marketing authorization from the U.S. Food and Drug Administration (FDA). The device, first submitted for application in 2023, features a smartphone app with age-gating capabilities, providing usage insights, device location, and real-time battery information. Company data shows that some Juul2 users have switched from traditional cigarettes, with menthol-flavored users showing the highest conversion rate at up to 49%.
According to the latest Gallup poll, the proportion of U.S. adults who drink alcohol remained at a historic low of 54% in 2026, stabilizing after three consecutive years of decline. The trend of substituting non-alcoholic beverages is notable, with 17% of respondents having used non-alcoholic drinks as replacements for alcoholic ones.
Due to the tightening of federal policies last summer, participation in the Supplemental Nutrition Assistance Program (SNAP) has significantly declined. In April, national participation decreased by nearly 13% year-over-year, with Arizona experiencing the largest drop of over 50%; several southeastern states saw declines exceeding 20%. Only Alaska and Guam recorded increases.
Gopuff announced this week the expansion of its private brand portfolio, introducing its first limited-time seasonal product line. The new offerings include baked goods, beverages, and snacks under the Crave Shoppe and Basically brands, available exclusively in the Gopuff mobile app. This move follows a common strategy in the convenience store industry of launching fall flavors in late summer.
Preliminary data from the University of Michigan shows that consumer confidence fell nearly 8% month-over-month in August to 51, still above second-quarter readings but remaining low. The war in Iran has pushed up fuel prices, compounded by the lingering effects of years of high inflation, prompting some consumers to cut spending, impacting impulse purchases at convenience stores. Executives from four convenience store retailers—Arko, CrossAmerica Partners, Global Partners, and Murphy USA—shared their views on the current economic situation during recent earnings calls.
The U.S. FDA announced on Tuesday the approval of four On! nicotine pouches from Helix Innovations, a subsidiary of Altria Group. This brings the total number of authorized nicotine pouches to 30, including 10 from Helix and 20 from Swedish Match's Zyn brand. The approval is part of an FDA pilot program aimed at improving the efficiency of nicotine pouch reviews.