Diarmuid O'Donovan has a friendly smile and some easy banter for everyone who walks into his smart O'Donovans forecourt store in leafy Carrigrohane, in the Republic of Ireland. As the owner of the busy County Cork site for the past 13 years, he knows many customers who pass through his doors and he'll go out of his way to get to know the ones he doesn't.

The tobacco companies are all in agreement they're all bitterly disappointed that the government has ignored all the evidence that says a ban on tobacco displays will have no impact on young people smoking. The impact it will have however is on retailers and in a negative way financially in terms of compliance, and logistically in terms of queues of people waiting as staff search for tobacco products that have been hidden away.

You can't smoke a cigarette without a lighter or matches. Likewise you can't make a roll your own cigarette without papers. These items the lighters, matches and papers are often forgotten when you think about the multi-billion pound cigarette market but they have an important part to play.

Unfortunately the wheels have not come off the lumbering Health Bill and the tobacco display ban that features within it looks likely to go ahead. Last month the House of Lords defeated an amendment to remove the ban from the Bill by 204 votes to 110, and now the Bill will go to the House of Commons for consideration.

Amid all the furore about the proposed tobacco display ban, tobacco manufacturers remain surprisingly upbeat about the UK tobacco category and its future. And when you take time to look at the figures you can see why. Currently 13 million adults choose to smoke tobacco products in the UK and between them they purchase nearly 47 billion cigarettes per year in retail outlets. And these sales generate £11.6bn in turnover.

With all the legislative issues affecting the tobacco market, it could be easy to lose sight of the category's importance to the forecourt sector. And important it is. After all it's not that long ago that the forecourt 'shop' was more of a kiosk selling cigarettes and a bit of confectionery. Today many of those 'shops' have developed into full-blown convenience stores yet cigarettes and other tobacco products can still account for up to a third of sales.

Another year and yet more legislation for the tobacco industry. In 2007 we had the ban on smoking in public places plus the rise in the age at which people could buy tobacco - from 16 to 18. This year we have new laws for lighters plus the introduction of pictorial health warnings. When will it ever end is the obvious question and the answer is probably when every last smoker has given up. However that's a long way off as there are still 13.7 million adult smokers in the UK - yes the numbers fall every year but not as much as one might think given all the anti-smoking activity.

In 2006 adult smokers spent just over £13bn on cigarettes, cigars, RYO tobacco, lighters and other accessories - and a lot of that money went through forecourt tills. Cigarettes is, of course, by far the biggest part of the market - worth £11.34bn in retail sales. And forecourts take an 11.8% share of those sales. Iain Watkins, trade communications manager at Imperial Tobacco, comments: "The number of forecourts is in decline yet they still account for one in every eight packs of cigarettes sold. That's pretty impressive."

Tobacco retailers were already facing a raft of new legislation before the New Year's Day announcement concerning the raising of the minimum legal age for buying tobacco products from 16 to 18 from October 1.

With the ever-increasing duty on tobacco said to be fuelling a boom in counterfeit products and forcing consumers to down-trade to cheaper brands, retailers, manufacturers and smokers alike were hoping Gordon Brown would give them a break. However, the Budget in March saw yet another rise, this time of 9p on a packet of 20 cigarettes.

It’s been another challenging year for the tobacco industry as the legislative pressures pile on, but the category continues to do well and not least on forecourts.

Despite the government’s efforts to curb smoking in the UK, the tobacco category continues to thrive and maintain its position as the best-selling category in forecourts, responsible for almost one third of total forecourt shop sales.

Tobacco retailers have faced some pretty tough trading conditions over the past few years. The impact of smuggling, reduced margins due to increased taxation, and the constant fear of inadvertently falling foul of the law through underage sales must leave some forecourt operators wondering why they bother with the category.

If forecourt retailers want to improve their cigarette sales they must make sure their gantries are fully stocked at all times, especially in the evenings and at weekends. So says Tom Fender, managing director of Harris International Marketing (HIM).

Another year, another set of new regulations regarding the sale of tobacco. The latest came into play on January 1, with regard to tar, nicotine and carbon monoxide levels. The maximum level for tar content is now 10mg, for nicotine it is 1mg and for carbon monoxide 10mg.