Icelandic Snuff Sales Hurt By Pouches

Rising sales of nicotine pouches are depressing demand for snuff in Iceland, reports Iceland Review, citing comments made by State Alcohol and Tobacco Co. Director Sveinn Víkingur Arnason.

Iceland began producing snuff in 1941, and consumption peaked in 2019, when 46 tons were produced and sold domestically. Since then, the trend has been steadily downwards, with only 10 tons of snuff tobacco sold in 2023.

While snuff is intended for nasal use, surveys have shown that it has been used predominantly orally in Iceland, which prohibits the sale and production of chewing tobacco.

The decline in snuff sales has been driven in part by the growing popularity of nicotine pouches, which at ISK40 ($0.29) per gram are significantly cheaper than snuff. Snuff tobacco sold by the State Alcohol and Tobacco Co. sells for around ISK80 per gram.

The main reason for this price difference is the fact that nicotine pouches and snuff tobacco fall under different tax schedules.

Arnason said he expects the downward trend in snuff sales to continue.