The Size and Strength of the Convenience Channel
One of the most talked-about trends on the show floor was the size of the convenience channel, it’s not just growing—it’s thriving. With over 152,000 stores nationwide, the channel has added more than 11,600 locations in the past two decades. Chain stores have now surpassed independents in total count, and average store square footage has increased by 11%, creating more room for category expansion and innovation.
Convenience stores now account for $170.6 billion in annual sales, representing 13.1% of NIQ’s measured retail channel. Notably, 94% of those sales come from just three departments: tobacco, beverages, and alcohol, so let’s break down what these categories mean for brands, manufactures, and retailers.
Beverage Alcohol: Growing in Convenience, Declining Elsewhere
While other retail channels are seeing declines in beverage alcohol sales, convenience is bucking the trend. Aside from Beer where we are seeing a decline in the category, all other Beverage Alcohol sales grew +0.3% year-over-year in the convenience space, reaching $31.3 billion in sales, while liquor and grocery channels declined by -2.2% each, and mass merch/dollar/club dropped -4.0%. What does this mean for the convenience space? Consumers are increasingly drawn to the convenience channel for friction-free shopping, quick trips, and the opportunity to purchase RTDs cold vs other retailers. Brands that stay on top of these trends will win in the space.
Crossover Beverages Are Blurring Boundaries
Crossover brands: non-alcoholic beverage names entering the alcohol space are reshaping the RTD category. Think Simply Spiked or Jack Daniels Coca-Cola. These brands are leveraging existing consumer trust to drive trial in the ready-to-drink (RTD) alcohol category. These brands generated $300M in sales in convenience stores over the past year, appealing to Gen Z (21+) and Millennials, with high index scores for younger demographics.
THC and Functional Beverages
Cannabis-infused beverages are gaining traction in convenience stores, especially in states with legal frameworks. These drinks often containing THC, Delta-8, or CBD are emerging as alternatives to alcohol, aligning with broader trends in moderation and wellness, up +486% versus a year ago.
Functional beverages, including energy drinks and wellness-focused formats, are also surging. Energy beverages up 7% from a year ago are now outpace soft drinks in convenience, and functional beverage sales are up +5% vs 2 years ago.
Gen X: The Silent Powerhouse in Convenience
Our collaboration with World Data Lab spotlighted Generation X as a critical growth engine for convenience retailers. Generation X is the highest-spending generation globally, with $15.2 trillion in annual spend in 2025. In the U.S., Gen X households are the most valuable to convenience stores, with:
- The highest annual spend per buyer ($1,560)
- The most frequent trips (66 annually)
- The greatest share of wallet in convenience (4.7%)
These shoppers show strong loyalty to branded products and dominate in key categories like non-alcoholic beverages, salty snacks, and alcohol, making them a strategic target for retailers.
Retailers looking to win with Gen X should focus on omnichannel experiences that build trust, time-saving formats and functional claims and messaging that reflects Gen X’s role as caretakers and decision-makers across three generations.
The convenience channel is no longer just a quick stop—it’s a dynamic, data-rich environment where innovation, consumer behavior, and generational influence converge. From the rise of crossover alcohol brands and THC-infused beverages to the growing dominance of Gen X shoppers, NIQ’s insights from NACS 2025 show that the future of convenience is being shaped by agility, trust, and relevance. Retailers who embrace these trends by optimizing assortment, merchandising responsibly, and tailoring experiences to high-value consumers will be best positioned to lead in a space defined by transformation and opportunity.
For more on NIQ’s presence at NACS, visit the event page: NACS Show 2025 – NIQ
