Nicotine pouches are on the rise
Nicotine pouch vs Snus
Snus is a pasteurized oral tobacco that has been around for about 200 years. Nicotine pouches are a similar product, but more fashionable and hygienic. The two exist independently of each other as oral tobacco. The consumer places the nicotine pouch between the upper lip and the gums, after which the nicotine is released. Both the snus and the Nicotine Pouches are disposable products. Unlike the suns, the nicotine pouch does not contain tobacco, it is a white, pre-filled pouch with food-grade nicotine material. The product is available in a variety of nicotine strengths and flavor categories.
This is a niche product in a niche market that is growing extremely rapidly. 360 Market Updates, a leading consulting firm, has released an analysis that assesses that the current market size for nicotine pouches is approximately $619.9 million and that this market will reach $12.97 billion in 2026. This implies that the nicotine pouch market will grow at a CAGR of 53.8%.
This emerging product has been rapidly embraced by consumers in Scandinavia and Central and Eastern Europe.
Sweden has one of the lower cigarette consumption rates in the EU, a situation that many believe is attributable to the popularity of snus in the country.
Since 1992, there has been an EU-wide ban on the sale of snus (an exemption from the ban was negotiated when Sweden joined the EU in 1995). Switzerland, a non-EU member state, also lifted its ban on snus.
In recent years, multinational tobacco companies have incorporated snus into their product offerings, either through the acquisition of existing products or through their own research and development. At the same time, they have all stepped into the nicotine pouch market. To date, all the world's leading tobacco companies have a presence in this field, and nicotine pouches as a new oral cigarette have begun to eat into the market share of traditional snus.
Regulation is not absent
In the United States, tobacco-free nicotine pouches are required to have a "This product contains nicotine. Nicotine is an addictive chemical" label, and many nicotine pouches are only sold to consumers over the age of 21. Compared to other tobacco products, the nicotine pouch industry has a low barrier to entry, but this type of product also needs to be regulated by the FDA. In contrast, the EU nicotine pouch market is currently operating in a regulatory vacuum. Tobacco-free products are not regulated under the new EU Tobacco Products Directive (TPD2), nor are they part of any other regulated category. Unlike tobacco products, they can be promoted and advertised through television, radio, and billboards.
Published by: Eastern Tobacco News