Nicotine's new frontier: 2026 Tobacco + Vaping Report

Canada’s convenience channel is undergoing a significant transition due to declining tobacco volumes, persistent contraband, and tightening federal regulations. While smoking rates are falling—with 13% of Canadians using tobacco products in 2024, down from 29% in 2001—legal sales are dropping faster due to a thriving illicit market estimated at $1.3 billion. This market includes contraband cigarettes, fine-cut tobacco, and nicotine pouches, operating without age verification or product standards. Provinces like Alberta and Ontario are attempting to combat this through increased penalties and enforcement.

The report highlights a shift in consumer behavior, with more smokers seeking alternatives like vaping and nicotine pouches, and a growing interest in cessation aids. Health Canada’s progress report indicates that while the country is making strides towards its 2035 target of less than 5% tobacco use, it may fall short at the current rate. Companies like Imperial Tobacco Canada advocate for access to reduced-risk products and emphasize the need for a regulatory framework that protects youth while supporting adult smokers.

Furthermore, some brands, like Century Tobacco Company (CTC), are finding success by focusing on traditional cigarettes and offering competitive pricing to retailers, while others, like Nuvona, are diversifying into new categories such as nicotine pouches and energy shots. The C-store IQ National Shopper Study reveals that convenience stores remain the primary purchase destination for smokers, particularly millennials and Gen Z, and that brand loyalty is high, emphasizing the importance of in-stock availability.

(Source：CCentral)