Despite the clear and obvious dangers of tobacco use, more people are consuming tobacco products. In fact, the Federal Trade Commission reported that for the first time in 20 years, year-to-year cigarette sales actually rose during the pandemic, with an increasing number of younger people smoking. Alongside cigarettes, vaping and snus are also increasing in popularity. Recent reports on the snus industry have listed the biggest players, such as ITG and Japan Tobacco, and outlined how snus consumption is projected to grow between 2022-2028.
The good news, however, is that more people are trying to quit tobacco and one of the most popular products they are using is the nicotine pouch. Nicotine pouches were conceived to provide the same nicotine experience, but with reduced health risks by being smokeless and tobacco-free. While nicotine pouches originate from Sweden, this article will look into their increasing demand and popularity in the United States, where adult smokers are also in need of a viable alternative to cigarettes and tobacco.
Market overview and trends
Nicotine pouches belong in the category of oral smokeless products. In place of tobacco, the pouches contain pharmaceutical-grade nicotine powder, flavorings, and other ingredients.
A report from Yahoo Finance estimated that the global market for nicotine pouches to be $5.859 billion in 2022. With a compounded annual growth rate of 32%, the global nicotine pouch market is projected to reach $29.62 billion by 2028. In terms of sales, offline channels account for about 87% of the global total.
Zeroing in on the US market, nicotine pouch sales reflect a steadily rising trend from 2019 to 2022. Overall nicotine pouch unit sales have grown from 126.06 million in December 2019 to 808.14 million in March 2022, with an average monthly percentage change of 8.1%. The top brands leading in the market share are ZYN, On!, and Rogue, with Rogue’s sales specifically showing the sharpest increase compared to other brands.
Drivers of demand for nicotine pouches
In understanding what drives the increasing demand for nicotine pouches in the US, we must first look into the largest demographic of nicotine pouch users. These are the adult smokers aged 18-44, who are three times more likely to use nicotine pouches compared to older smokers, according to a Rutgers study in 2021.
Wide selection of flavors
Among the features that appeal the most to the youth and adults are the flavor offerings. Out of all the brands available online, the On! nicotine pouches on Prilla offer a wide selection of flavors with high-quality ingredients that allow users to personalize their nicotine experience. These include cool flavors like mint and wintergreen, fruity flavors like citrus and berry, and rich flavors like cinnamon and coffee. At the same time, pouches can still cater to those who simply want a pure nicotine delivery, as there are also original or flavorless options.
Discreet use
Aside from the wide selection of flavors, nicotine pouch brands also promote their products as an effective and discreet alternative to tobacco. Research by Ling et al. analyzing nicotine pouch marketing messages, from brands like ZYN, found that their advertisements typically focus on the freedom that comes with using nicotine pouches everywhere, be it in workplaces, bars or clubs, recreational spaces, and transportation. Meanwhile, other brands, including On!, mostly advertise nicotine pouch products as free of tobacco, smoke, spit, odor, or stain. This highlights how pouches are not only convenient to use but can also alleviate health concerns associated with exposure to tobacco and/or smoke.
Need for smoking cessation
Finally, nicotine pouches can also be seen as a smoking cessation aid. Because pouches come in various concentration levels starting at 2mg, smokers can adjust the nicotine delivery depending on the potency and frequency of their cravings. Rather than giving in to the urges to smoke, they can also use nicotine pouches to alleviate withdrawal symptoms without the risk of getting addicted to the product.
In summary, the increasing demand for nicotine pouches in the US, especially among the youth and adults, can be attributed to product features like appealing flavors, discreet use, and reduced health risks. Whether individuals intend to quit or simply looking for an alternative nicotine delivery format, over-the-counter nicotine pouches are an accessible option either as a quit medication or a smoke-free product.