Nicotine Pouches Market Share, Size, Trends, Industry Analysis Report, By Product (Tobacco-derived, Synthetic), By Flavor, By Nature, By Region, And Segment Forecasts, 2023 - 2032
- Published Date:Jul-2023
- Pages: 119
- Format: PDF
- Report ID: PM3659
- Base Year: 2022
- Historical Data: 2019-2021
Report Outlook
The global nicotine pouches market was valued at USD 1.60 billion in 2022 and is expected to grow at a CAGR of 33.16% during the forecast period.
The market for smokeless and tobacco-free alternatives, such as nicotine pouches, has witnessed significant growth recently, primarily driven by the increasing consumer demand for safer options. This demand is fueled by the awareness of the negative health consequences linked to tobacco smoke, including its association with different forms of the cancer. Nicotine pouches offer a smoke-less alternative to satisfy its nicotine cravings. Shift in the preferences of the consumer towards less harmful nicotine options, as people are seeking alternatives to satiate their needs, as they strive to reduce their exposure to known carcinogens.
The nicotine pouches market report details key market dynamics to help industry players align their business strategies with current and future trends. It examines technological advances and breakthroughs in the industry and their impact on the market presence. Furthermore, a detailed regional analysis of the industry at the local, national, and global levels has been provided.
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Consumers are increasingly seeking goods that are free from the negative effects of smoke or inhalation, reflecting a growing demand for safer alternatives. Additionally, there is a rising emphasis on transparency and sustainability in consumer preferences. According to the Centers for Disease Control and Prevention (CDC), the sales of nicotine pouches in the United States have experienced a significant surge, increasing 300 times between 2016 and 2021. Major market players like British American Tobacco and Swedish Match have witnessed rapid growth in their modern oral segment in the U.S. market, as observed in 2020-2021.
For instance, Swedish Match reported a notable sales increase of 50% for its ZYN products in the U.S. during the first half of 2021.
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Industry Dynamics
Growth Drivers
Rising adoption of Nicotine Pounches
There is a notable increase in the interest for nicotine pouches among young individuals who are seeking alternatives to traditional smoking and aiming to quit. This trend is driven by the desire to avoid lung exposure and the harmful effects of traditional tobacco products. A study conducted by Rutgers in March 2022 surveyed 1,018 smokers in the United States regarding their awareness and usage of nicotine pouches. The findings revealed that approximately 29% of smokers were aware of these products, with 6% having tried them already and 17% expressing interest in trying them in the future. This indicates a growing curiosity and potential demand for nicotine pouches as a tobacco-free alternative.
Manufacturers in the nicotine pouches market are responding to the growing popularity of these products by introducing new offerings. Key players in the industry are utilizing strategies such as mergers and acquisitions, expanding their product portfolios, and conducting awareness campaigns to promote their new products. A notable example is the acquisition of Swedish Match AB, by the Philip Morris International in May 2022. This acquisition, valued at USD 16 billion, aims to expand Philip Morris International's product range in the U.S. market. Swedish Match's renowned nicotine pouch brand, ZYN, which is tobacco-free, has gained significant popularity in both the U.S. & Scandinavia, contributing to its success in the market.
Report Segmentation
The market is primarily segmented based on product type, flavor type, strength, and region.
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By Product |
By Flavor Type |
By Strength |
By Region |
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By Product Analysis
Tobacco Free Segment Accounted for the Largest Market Share in 2022
Tobacco free held the largest share. offers a wide range of flavored pouches from leading brands and has witnessed rapid growth in global popularity. Manufacturers in the market are strategically utilizing merger and acquisition strategies to target specific countries and expand their market presence.
Synthetic segment is likely to grow at fastest growth rate. This growth is primarily driven by the increasing number of product launches in the synthetic segment, which is expected to propel the overall market expansion. Leading brands such as "NIIN" and "Rush" are focusing on expanding their product portfolios by introducing synthetic pouches. For instance, in February 2021, the "NIIN" introduced 100% tobacco-free pouches available in different flavors, such as citrus chill, winter-green, spearmint, & cinnamon.
By Flavor Type
Flavored Segment Held the Significant Market Revenue Share in 2022
Flavored segment held the majority market share in terms of revenue. The increasing demand for tobacco-free and smoke-free alternatives with diverse flavors is driving the sales of flavored nicotine pouches. Manufacturers in the global market are also capitalizing on the growing trend of consuming nicotine pouches with original flavors. For instance, in April 2022, the well-known brand Juice Head introduced a new range of fruit-flavored products. These pouches, available in 6 & 12 mg tobacco-free nicotine strengths, offer a selection of different flavors.
Unflavored segment is likely to exhibit fastest growth rate. Consumers' increasing preference for unflavored/original options has prompted key players in the market to introduce new products with the original flavors. For instance, On! brands offers an original flavor that provides substitute to the traditional tobacco products. These are formulated with a special blend of ingredients including nicotine bitartrate digydrate, micro-crystalline cellulose, sodium carbonates, & binders. The introduction of such product offerings is expected to drive growth in the un-flavored segment throughout the forecast period.
By Strength Analysis
Strong Segment Held the Significant Market Revenue Share in 2022
Strong strength segment held the majority market share. The strength of a nicotine pouch can vary based on several factors, including individual variations, moisture content, pH levels, and even the presence of flavorings. Key brands in the market recognize the growing demand for strong strength products and offer them to cater to consumer preferences. Various factors, such as individual characteristics and product attributes, can influence the perceived strength of a nicotine pouch.
Normal segment is likely to exhibit fastest growth rate. This segment appeals to moderate tobacco users and individuals with a lower tolerance for nicotine's effects who prefer tobacco pouches with regular strength. With an increasing number of product launches in the market, customers have access to a wide range of options in terms of flavors and strength levels. This enables them to select products that align with their individual preferences and expectations. For instance, the brand ZYN by Swedish Match AB offers a tobacco-flavored nicotine pouch in the normal strength range of 3mg, despite containing no tobacco. These factors are expected to contribute positively to the future growth of the normal segment.
By Regional Analysis
Europe Region Dominated the Global Market in 2022
Europe region dominated the global market. This growth can be attributed to the rising adoption of oral tobacco-free products as an alternative to combustible cigarettes in the region. Manufacturers operating in the global market are actively investing in European countries to meet the increasing demand for nicotine pouches. Swedish Match has reported that the consumer base for these products in Sweden is expanding, estimated to reach approximately 1.3 million consumers (including both daily and occasional users), with women constituting around 25% of the user base.
APAC is expected to grow at the fastest rate. Factors such as increasing urbanization, rising per capita income, and effective marketing strategies implemented by global players are expected to drive the market in this region.
Key manufacturers operating in the Asia Pacific market are actively expanding their presence and distribution networks to cater to the growing demand for oral smokeless products. This expansion is often accompanied by promotional activities and discounts.
Competitive Insight
The nicotine pouches market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Some of the major players operating in the global market include:
- Altria Group
- British American Tobacco
- Japan Tobacco
- Next Generation Labs
- Nicopods ehf
- Philip Morris International
- Skruf
- Swedish Match
- Swisher
- Triumph Tobacco Alternatives
Recent Developments
- In April 2023, The Swedish market witnessed the introduction of String Free, a new brand of contemporary oral nicotine pouches. This launch provides consumers with an additional choice for a convenient and discreet nicotine consumption experience. The entry of String Free into the market signifies the continuous growth and advancement within the oral nicotine pouch category, reflecting the industry's commitment to innovation and meeting consumer needs.
Nicotine Pouches Market Report Scope
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Report Attributes |
Details |
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Market size value in 2023 |
USD 2.04 billion |
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Revenue forecast in 2032 |
USD 26.80 billion |
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CAGR |
33.16% from 2023 – 2032 |
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Base year |
2022 |
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Historical data |
2019 – 2021 |
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Forecast period |
2023 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2023 to 2032 |
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Segments covered |
By Product Type, Flavor Type, Strength, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Key companies |
Swedish Match, Altria Group, Nicopods ehf, Triumph Tobacco Alternatives, Japan Tobacco, British American Tobacco, Swisher, Next Generation Labs, Philip Morris International, and Skruf |
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FAQ's
The global nicotine pouches market size is expected to reach USD 26.80 billion by 2032.
Key players in the nicotine pouches market are Altria Group, Nicopods ehf, Triumph Tobacco Alternatives, Japan Tobacco, British American Tobacco.
Europe contribute notably towards the global nicotine pouches market.
The global nicotine pouches market is expected to grow at a CAGR of 33.16% during the forecast period.
The nicotine pouches market report covering key segments are product, flavor type, strength, and region.
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