Nicotine Pouches Market Report

The rising number of cancer cases associated to the use of cigarettes, weed and other substances is likely to enhance product adoption. Tobacco usage can lead to major health issues such as an increased risk of heart disease and stroke, cancers of the mouth, tooth loss and throat and so on. According to the World Health Organisation (WHO), lung cancer ranks third in prevalence among cancers and is the top reason for cancer-related deaths in the Americas, with over 324,000 new cases and almost 262,000 deaths annually. Key market players such as British American Tobacco and Swedish Match projected fast growth in their modern oral category in the United States. Major players are promoting new products by utilising growth trends such as product portfolio expansions, mergers and acquisitions and awareness campaigns. Throughout the forecast period, all of these factors are anticipated to influence the nicotine pouches market.

Additionally, global manufacturers are focusing on merger and acquisition strategies to target a specific country. For instance, Philip Morris International acquired Swedish Match AB in May 2022 for US$ 16 billion in order to diversify its product line for the US market. The falling percentage of daily cigarette smokers increases revenues of tobacco-free alternatives. Additionally, the growth of digital and e-commerce platforms is causing a spike in the nicotine pouches market. Online stores like Nicorette and direct-to-consumer portals like Zyn's website make it easier and more convenient to buy nicotine pouches. For instance, Zyn has utilized digital marketing tactics, such as focused advertisements and collaborating with influencers, to improve brand recognition and attract a wider range of customers. This shift to digital technology enables instant customer engagements, customized suggestions, and simplified buying procedures, leading to a broader market presence and enhanced consumer experience within the expanding nicotine pouch industry.

Nicotine, known for its high addictive potential, can lead to several adverse effects such as reduced appetite, mood swings, excessive sweating, and nausea. Chronic use can result in a dependency stronger than that associated with traditional tobacco products, posing significant health risks. Additionally, the high cost of nicotine pouches may deter widespread consumer adoption and limit market growth. These factors contribute to potential obstacles in the nicotine pouches market, as consumers weigh the health implications and financial burden against the perceived benefits of using such products. Consequently, these elements could restrain market expansion and adoption rates.

Additionally, there is a significant lack of knowledge and learning about nicotine pouches in comparison to traditional smoking cessation products such as nicotine gum or patches. This failure to comprehend could greatly impede consumer uptake. For example, numerous potential users may not completely understand the functionality of nicotine pouches or their benefits compared to smoking or other nicotine substitutes. This lack of understanding may cause doubt and hesitancy in transitioning from traditional nicotine products to pouches. Successful education and outreach are vital for overcoming these obstacles and enhancing market acceptance and growth of nicotine pouches.

Innovations in nicotine pouches are crucial to meet evolving consumer preferences and enhance effectiveness. New developments, such as improved flavours, extended-release formulations, and enhanced user comfort, address gaps in current offerings and drive market growth. These innovations are vital for attracting smokers seeking alternatives to traditional tobacco products, offering a more satisfying and flexible quitting aid. Additionally, advanced formulations can improve nicotine delivery and reduce potential side effects, making nicotine pouches a more appealing option for those transitioning from cigarettes or managing cravings. For instance, in May 2024, InventHelp Inventor Develops New Pouches for Nicotine Products. In addition, in September 2023 COCO nicotine pouches, the latest innovation from Spectrum Leaf AB, has now been officially launched in key European markets including Sweden and Switzerland. Breaking away from the conventional white nicotine pouch approach, COCO is the first nicotine pouch that leverages the highly porous structure of coconut coir fibres as its core to enable a smoother and longer lasting release of both flavours and nicotine.

Europe dominated the overall industry, accounting for more than half of global revenue. The regional market is being driven by rising usage of tobacco-free oral products over flammable cigarettes. Manufacturers are also making investments in European countries to fulfil the increasing demand for nicotine pouches. According to Swedish Match, the consumer base for snus and nicotine pouches in Sweden continues to increase, with an estimated 1.3 million consumers (combined daily/occasional users) of which approximately 25% are women. During the forecast period, Asia Pacific is expected to have the second-fastest growth rate. Rising per capita income, increasing urbanization and attractive marketing strategies adopted by global companies are expected to drive market expansion in Asia Pacific. Major manufacturers in the region continued to increase their geographical and store footprint for their oral smokeless product portfolios, which were often accompanied by promotional discount activities.