One in four adult smokers now choose to smoke RYO products, and the category was worth £1.3bn in 2010.
More than 80% of retailers surveyed believe RYO sales will either increase or remain consistent in 2011, and more than 50% have witnessed regular adult tobacco buyers switching from cigarettes to RYO in a bid to save cash.
In addition, almost 80% said pricemarked packs now formed a key part of their RYO ranges, while 70% said they had added 25g and 50g pack sizes in the past 12 months.
Jeremy Blackburn, JTI head of communications in the UK, said it was clear that the category was now of huge importance to retailers. "As more adult smokers strive for greater value when purchasing tobacco, the RYO market is only going to get bigger, so it's important to be prepared in order to profit from this future growth. Store owners can benefit from these findings to help maximise the sales opportunity that exists," he said.