This article is brought to you by Cheyenne International.

Variety in the backbar continues to increase as new products come online and tobacco consumers’ preferences evolve.

“Consumers are more educated now about what the different options are across the continuum of tobacco products and are more open to choosing something new or venturing outside of the products they’re used to,” said Cheyenne VP of Sales, David Brinkley. “That could mean trading down from a premium cigarette to a fourth-tier option or other tobacco product. Retailers can’t have a narrow focus in this category.”

The “other tobacco products” category increased in sales from 2023 to 2024, contributing $19,663 per store, per month in 2024, up 7.0% from 2023 and the largest year-over-year sales growth of all of the top ten categories, according to the NACS State of the Industry Report® of 2024 Data. The category accounted for 8.1% of in-store sales and contributed 6.26% to gross margin in 2024.

While combustible product usage has declined for several years, it will still be a choice that adult consumers will make, meaning cigars are still an important part of the equation even as OTP, modern oral products, smokeless alternatives and e-cigarettes continue to gain market share.

Brinkley noted that customers are also influenced by price as inflation puts pressure on consumers’ budgets. “In OTP, value-priced filtered cigars are performing well because they deliver both quality and affordability. Consumers are looking for consistent flavor, reliability and brands they trust—at a price that fits their budget,” he said.

While many consumers are up for trying something new, they are also loyal to a brand that they trust.

“The price may drive the first purchase, but brand drives repeat purchases. Consumers want to be assured they’re buying a product that’s consistent, reliable and high quality—especially in the value segment, where trust and brand awareness can make or break a purchase decision. A credible, established brand, like Cheyenne’s filtered cigars, provides that assurance, which translates directly into loyalty and repeat sales.”

According to MSA filtered cigar data, Cheyenne Cigars are the best-selling filtered cigar nationwide, selling the top four SKUs in the filtered cigar category. The manufacturer’s Full Flavor Cigar sells more than other brands in the top 10 combined, the company said.

“Cheyenne Cigars is a successful brand because it delivers premium-quality taste with consistency and a diverse range of flavors at a value price,” said Brinkley. “Even in a price-driven market, that combination of quality and value creates brand loyalty that keeps Cheyenne at the top of the category.”

Despite regulatory constraints, Brinkley noted that OTP remains a category with potential for innovation, and retailers should keep an eye on how the category evolves in the future. “There really is no one-size-fits-all answer for stocking the backbar—it’ll depend on a retailers’ location, market, customer preferences and regulations. Retailers need to partner with reliable suppliers and distributors who have the data that can help them make those decisions, especially as OTP evolves in a category that is already always changing,” he said.

This is the second in a two-part article series from Cheyenne International. Read part one, focusing on fourth-tier cigarettes, here.