Following Consumer Stockpiling, U.S. Cigarette Sales Plunge

U.S. cigarette sales dropped significantly following initial stockpiling related to the Covid-19 pandemic.

According to Nielsen convenience store data, traditional cigarette volumes fell 8.4 percent for the week that ended April 4.

By comparison, traditional cigarettes sales volume rose 1.1 percent for the week that ended March 22, after states started ordering people to stay home.

Goldman Sachs analyst Bonnie Herzog wrote Tuesday that the sharp decline occurred “as consumers likely depleted their previous pantry-loading.”

Health advocates fear that consumption could rise as smokers spend more time at home during quarantine, away from public places with smoking bans.

“Consumption levels also tend to increase during times of personal stress. Lower gas prices and consumer wages—and/or unemployment benefits—are also key variables for 2020 volumes,” Piper Sandler analyst Michael Lavery was quoted as saying.

Meanwhile, value sales of mainstream vapor products decreased 10.7 percent for the four-week period, but remained up 22 percent over the year.

The decline in demand for closed-pod cartridges, was driven largely by recent federal regulatory changes.