Tobacco and Smoke Shops NAICS 459991

Aug 27, 2025 - New Tobacco Retailer Training Ahead

• According to Tobacco Reporter, the US Food and Drug Administration (FDA) is seeking public comment on a tobacco retailer training program requiring several new elements, including written tests for employees selling tobacco. FDA estimates that the proposal will affect 79,700 retailers nationwide, which creates an annual reporting burden of nearly 2 million hours and 191,000 hours for recordkeeping. Elements include written tests for employees selling tobacco products, with refresher training annually and records of training being kept for four years. The FDA noted that about 75% of tobacco retailers already have some kind of age and identification training program in place. According to Grace R. Graham, deputy commissioner for Policy, Legislation, and International Affairs, some retailers will already meet the new training requirements, some will need to update their training, and some will have to implement training programs for the first time.
• Indicators measuring the collective mood of US consumers show mixed signals, with consumer confidence levels slightly up and consumer sentiment falling. Consumer confidence levels, an indicator of discretionary expenditures, improved in July 2025, month over month, rising by 2 points, according to the Consumer Confidence Index. Consumer confidence levels have stabilized since May but remain lower than last year’s, according to The Conference Board, which publishes the monthly index. July’s gain can be attributed to consumers over 35 years old and shared across all income groups, except the lowest income group earning below $15K. In addition, the consumer sentiment index from the University of Michigan dropped in August 2025 for the first time in four months. The index fell to 58.6 in preliminary August data from 61.7 in July. Year-ahead inflation expectation results were higher monthly, as consumers convey lingering anxiety about prices amid tariff impacts. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• A recent survey by the Premium Cigar Association showed improvement for retailers, with 51% of retailers performing better in 2024 compared to 2023, 29% performing the same, and 20% performing worse. The First Quarter 2025 survey also revealed that 67% of cigar manufacturers said they performed better in 2024 compared to 2023, with 17% of manufacturers performing the same and 17% doing worse. Cigar manufacturers were asked to list their top concerns, which included rising costs, competitors over-discounting products, connecting with retailers on a timely and regular basis, finding quality sales help, and tariffs and complexity of different state taxes. Retailers were asked what they would like to communicate with manufacturers to help sell their products, and the most common answers were controlling moderate price increases and shipping, limiting high-end offerings and creating more economy cigars, better education/communication, fixing supply issues, and focusing on core lines and not “what’s new.”
• The US tobacco and smoke shops industry is projected to grow at a CAGR of 4.55% between 2025 and 2029, faster than the overall economy’s projected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and government. A factor that may limit consumer spending is higher tariffs on consumer goods. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if prices rise due to tariff implementation. The forecast said retail spending could soften with the growth of spending on consumer services, but noted that consumers so far have maintained spending on goods even as travel and live entertainment spending has risen.