Cigarette smoking and conventional tobacco product consumption lead to serious health conditions such as lung cancer, heart disease, and other cardiovascular diseases. The use of smoke-free alternatives such as e-cigarettes, heat-not-burn products, and nicotine pouches is perceived as more socially acceptable than smoking, particularly in settings where smoking is restricted. Nicotine pouches are one of the fastest-growing nicotine delivery products in the US. A shift in consumer preferences toward smokeless and discreet alternatives has driven interest in nicotine pouches. As health-conscious individuals seek alternatives to traditional tobacco products, these pouches provide a convenient and odor-free option.

In 2022, North America dominated the nicotine pouches market. As more individuals seek alternatives to traditional tobacco products, nicotine pouches emerge as a smoke-free option, allowing users to satisfy their nicotine cravings without the combustion-related health risks associated with smoking.

Nicotine pouches, offering a smoke-free method of nicotine delivery, present an attractive option for those looking to avoid the harmful effects of smoking. Many consumers, recognizing the detrimental impact of smoking on respiratory and overall health, are actively seeking harm reduction strategies. Nicotine pouches provide a way to satisfy nicotine cravings without exposing users to the harmful byproducts of combustion, contributing to the overall decline in the smoking rate. Unlike their smoke-emitting counterparts, nicotine pouches offer a stealthier way to satisfy nicotine cravings. The small, pre-portioned pouches are placed between the gum and upper lip, releasing nicotine through the oral mucosa. This eliminates the telltale signs of smoking, such as odor and visible smoke, making them ideal for workplaces, public spaces, and airplane flights where smoking is prohibited. All these factors are driving the demand for nicotine pouches in North America.

Accessibility of Nicotine Pouches Through Online Channels to Provide Lucrative Opportunities for Nicotine Pouches Market During Forecast Period

Online channels provide a platform for brand awareness, product information, usage guidelines, and potential health risks. E-commerce websites, social media platforms, and many online channels allow major companies to reach a broad consumer base. It offers consumers distinct nicotine pouch choices in terms of flavors and brands from different regions. Online channels provide customers with varied options, thereby catering to different taste preferences and nicotine content. Online sales allow companies to streamline the distribution of products and adjust inventory levels based on product demand data. This further allows key manufacturers to understand region-wise consumer preferences and optimize product offerings. However, factors such as age verification and regulatory compliance due to online accessibility of nicotine pouches are aspects of major concern.

Online retail channel bridges the gap between product manufacturers and consumers through direct delivery from their inventories to the global audience through express delivery options. As of 2023, nicotine pouches are widely available in the UK through both retail and online channels. In May 2023, DZRT brand launched locally-produced nicotine pouches in Saudi Arabia. Also, it is offering its product range through a website for product delivery. Hence, the accessibility of nicotine pouches through online channels would offer potential business opportunities in the nicotine pouches market in the coming years.

Nicotine Pouches Market: Segmental Overview

Based on strength, the nicotine pouches market is segmented into less than 6 mg/g, 6 mg/g to 12 mg/g, and more than 12 mg/g. In 2022, the 6 mg/g to 12 mg/g segment held the largest market share and is expected to register the highest CAGR from 2022 to 2030. Nicotine pouches with a strength ranging from 6mg/g to 12mg/g offer a moderate level of nicotine content, providing users with a balanced and controlled experience. Positioned between lower and higher nicotine concentrations, these nicotine pouches cater to individuals who desire a more substantial effect than the milder options but still want to avoid the higher nicotine levels found in traditional tobacco products. This range is often chosen by users who may be transitioning from smoking or seeking a more satisfying alternative.

Based on flavor, the market is bifurcated into original/plain and flavored. The flavored segment held a large rmarket share in 2022. Flavored nicotine pouches have gained popularity as a versatile and enjoyable alternative for nicotine consumption. These pouches are available in a variety of flavors, ranging from fruity to minty, providing users with a diverse and customizable experience. The inclusion of flavors masks the inherent bitterness of nicotine and adds a layer of sensory satisfaction. Some manufacturers even experiment with unique combinations such as dessert-inspired options like cinnamon, coffee, and even chocolate mint, catering to those seeking novel and distinct tastes.

Impact of COVID-19 Pandemic on Nicotine Pouches Market

Before the COVID-19 pandemic, nicotine pouches gained popularity due to the transition of demand toward alternative tobacco products. Nicotine pouches were perceived as a discreet and convenient option, contributing to their rising demand. The growing awareness of health concerns associated with smoking and a rising inclination toward smokeless alternatives fueled the market. Key market players offered a variety of flavors and nicotine strengths to cater to diverse consumer requirements. In 2018, JT International SA launched a range of nicotine pouches branded Nordic Spirit. Nordic Spirit is available in two flavors and has gained popularity since its launch due to rising consumer demand for tobacco-free products.

During the COVID-19 pandemic, several industries faced disruptions in their operations, leading to a temporary slowdown in the production capacities and distribution of nicotine pouches. Lockdown and social restrictions led to a temporary decline in the purchases, affecting sales. In 2021, rising vaccination rates contributed to improvements in the overall conditions across the world, which led to conducive environments for the nicotine market. Manufacturers were permitted to operate at full capacities, which helped them overcome the demand-supply gap. The market adapted to new consumer trends and the rising popularity of smokefree options.

Nicotine Pouches Market: Competitive Landscape and Key Developments

Swisher International Inc, Nu-X Ventures LLC, Swedish Match AB, Altria Group Inc, Imperial Brands plc, Philip Morris International Inc, British American Tobacco plc, Atlas International LLC, Sesh Products US Inc, and Enorama Pharma AB, are a few players operating in the global nicotine pouches market. Players operating in the market focus on providing high-quality products to fulfill customer demand.

Key Developments

• In November 2023, Imperial Tobacco Canada Ltd received approval for the sale of flavored nicotine pouches by Health Canada, in such a way that the products can be legally sold to children of any age and without advertising restrictions.
• In October 2023, Sesh Products US Inc announced the approval of the US Food and Drug Administration (FDA) for its Premarket Tobacco Product Applications (PMTAs).
• In June 2023, Imperial Brands acquired a range of nicotine pouches from TJP Labs to facilitate its entry into the US modern oral nicotine market. Imperial’s US operation, ITG Brands, will offer 14 product variants of oral nicotine pouches to legal adult Americans, with a relaunch in 2024.