Much attention is given to key categories in decline in the industry but there are an increasing number of exciting, often high-margin product categories which are driving the future of convenience.

1. Next generation e-cigarettes 

After EUTPD II it has at times felt like the tobacco industry has done a hand-brake turn, focusing on the likes of Pro-logic and IQOS. Internationally, a rise in Philip Morris’s branded IQOS stocks more than outweighs the decline in cigarette sales and the company’s boss even told the UK media that he could envisage a time when Philip Morris ceased the sale of traditional tobacco completely.

Did you know? The majority of e-cigs and vapers use e-liquids, but other common materials include waxy concentrates and dry herbs

2. Premium ready meals 

While M&S Simply Food and Little Waitrose have built up huge sales with ready meals to cater for time-pressed commuters and hard-working families, there have been few similar options for independents. But last week’s Lookbook retailer, Jonathan Fraser, has a customer who buys Cook meals by “the trolley load” and greater number of retailers are taking advantage of this premium-priced concession. 

Did you know? The Discover the Choice range includes pizzas, curries and tortelloni.

3. Premium spirits 

Craft beer now appears in most industry planograms. Hot on its heels, premium spirits (particularly gin) have become a key part of many stores’ ranges even more quickly. Pernod Ricard is investing in two campaigns for Christmas to focus on the opportunities for cocktail-making and whiskey sales while Diageo has seen sales of its Ciroc, Bulleit bourbon and Tanqueray gin rise after greater focus in the off-trade and on-trade.

Did you know? Britons spend, on average, £1,500 a year on alcohol.

4. Sugar-free energy drinks 

Faced with the challenge of the forthcoming sugar tax on soft drinks, major suppliers’ response has been to innovate. The arrival of no-sugar energy drinks is one of the most eye-catching developments and has also allowed a number of new companies into the market, with Scheckter’s Organic energy sitting alongside products from major suppliers Coca-Cola, Red Bull and Lucozade Ribena Suntory.

Did you know? Soft drinks account for 25% of the UK’s overall sugar intake.

5. Functional waters 

Another sugar-tax friendly development, functional waters reflect the busy but health-conscious lifestyles of many consumers. While water sales have been increasing  with new brands and marketing investment selling the health effects of water, the added benefits and flavours of functional waters have only widened the appeal to retailers. Lucozade FitWater and Glaceau Smartwater are two brands at the heart of this trend.

Did you know? Water sales are growing fast in multiples than independents – suggesting a larger opportunity exists.