Category: Smokeless

  • Canada to Crack Down on Pouches

    Canada to Crack Down on Pouches

    Image: Imperial Tobacco Canada

    Canada Health Minister Mark Holland promised to crack down on nicotine pouches, issuing a warning to tobacco companies that he claimed are marketing the products to children, according to City News Everywhere.

    “I would say to the tobacco companies that continue to look for ways to use loopholes to addict people to their products, get away, stay the hell away from our kids,” Holland said during a press conference.

    He accused Imperial Tobacco of using a loophole to get its oral nicotine pouch, Zonnic, approved by Health Canada, branding the product as a quit-smoking aid. Health Canada’s approval did not include a minimum age limit. Holland claims that this product is now being used to hook another generation on nicotine products.

    Imperial denied claims of using a loophole to gain approval; the company stated it simply applied to Health Canada and received approval.

    Holland plans to restrict access to Zonnic as well as restrict flavors and marketing.

    “To me, it is absolutely essential that we see these products move behind the counter,” Holland said.

    “Whatever dark corner the tobacco industry crawls and creeps into to go after our children, wherever they go, whatever loophole they think they can find, they will meet me like an iron wall,” he said.

    “To single out Zonnic for practices that are widespread across the industry is not only unfair but also smacks of hypocrisy, suggesting an anti-tobacco company bias rather than a genuine concern for public health,” said Eric Gagnon, vice president of regulatory affairs at Imperial Tobacco Canada.

    Gagnon noted that Imperial Tobacco Canada is open to discussing Holland’s proposed restrictions, but he believes that they should apply to all stop-smoking products, including nicotine gum. He also noted that the company has moved to place Zonnic behind counters, despite not being required to do so, but he feels that flavors are helpful to those trying to quit smoking and that Zonnic should be available everywhere that cigarettes are sold.

    Health Canada issued a consumer safety alert the same day as the health minister’s press conference regarding Zonnic: “They should not be used recreationally, by nonsmokers, by people under the age of 18 or by others at risk of nicotine’s toxic effects.”

    Tobacco control advocates have applauded the health minister’s plans. “We’re thrilled that Minister Holland is taking steps to stop this cycle and protect youth,” said Doug Roth, chief executive of Heart and Stroke, which Holland worked for between 2011 and 2015.

  • Finland Aims for Pouch Regulation Like Tobacco

    Finland Aims for Pouch Regulation Like Tobacco

    Photo: ir1ska

    The government of Finland wants to bring nicotine pouches under tobacco laws so that it can more effectively discourage consumption, reports YLE.

    Among other measures, it wants to curb pouch nicotine levels to 20 milligrams per gram of product. In addition, the government wants to prohibit the online sales of nicotine pouches and limit the range of flavors, in an effort to reduce the products’ appeal to young people.

    Under the proposals, retailers selling pouches would need to obtain a license, while importers would face restrictions.

    The stated aim of the proposed legal reform is to prevent health risks and the use of oral nicotine among young people.

    The widespread availability of strong nicotine pouches in Finland has reportedly reduced the smuggling of oral tobacco products from neighboring Sweden.

  • Show Them the Numbers

    Show Them the Numbers

    By Neil McKeganey and Andrea Patton

    To prevent nicotine pouches from being legislated out of the market, manufacturers must demonstrate the extent to which they are benefiting adult smokers, and quantify underage usage.

    By Neil McKeganey and Andrea Patton

    As tobacco companies seek to market lower harm alternatives to combustible cigarettes, there is one issue that is seriously undermining those efforts—youth use of their products. If you were in any doubt as to the scale of the threat that youth use of tobacco products represents for manufacturers, think Juul, Puff Bar, Elf Bar and disposable e-cigarettes in general. And now, critics of the tobacco industry have a new product in their sight. Fresh from their success in calling for the banning of disposable e-cigarettes, they are shifting attention to nicotine pouches with an increasingly familiar playbook of media alarm, political pronouncements and regulatory action.

    The widest-selling nicotine pouch product in the U.S. is Philip Morris International’s Zyn, which grew in sales from 126 million units in 2019 to 808 million units by March 2022 (Majmundar et al. 2022). Accounting for 58 percent of the U.S. nicotine pouch market, Zyn has become a key part of PMI’s next-generation nicotine product range. It is also a product that has not had to work hard to find its critics.

    Zyn is “a pouch packed with problems,” according to Senator Chuck Schumer. “These nicotine pouches seem to lock their sights on young kids—teenagers, and even lower—and then use the social media to hook them,” the senator said. Alongside Schumer’s dire warnings of a future in which young Americans are increasingly dependent on oral nicotine products, there has been a torrent of media articles casting Zyn as a major new threat to U.S. youth. In a New York Times article published at the start of the year, Emily Dreyfuss opened parents’ eyes to a world of “Zynfluencers”—social media personalities assiduously promoting oral nicotine products such as Zyn to their followers. Dreyfuss has called for age-gated advertising restrictions to limit young peoples’ exposure to “Zynfluencer” activities.

    In contrast to the often hysterical tone of the media reporting on underage use of nicotine pouches, the National Youth Tobacco Survey (NYTS) estimated that in 2023, 1.5 percent of U.S. middle school and high school students had used oral nicotine pouches in the past 30 days. Likewise, the 2023 Tobacco Product Prevalence Study (TPPS) undertaken by the Centre for Substance Use Research (CSUR) in Scotland estimated that 1.7 percent of 13-year-olds to 20-year-olds in the U.S. had used a nicotine pouch in the past 30 days.

    While the NYTS data relates to the category of oral nicotine pouch use, rather than Zyn in particular, the TPPS also quantifies the prevalence of underage use of Zyn and other tobacco products and devices, with 0.5 percent of 13-year-olds to 20-year-olds in the U.S. reporting past-30-day use of Zyn. Neither the NYTS nor the TPPS are detecting epidemic levels of oral nicotine pouch use among young people in the U.S. TPPS estimates show further that Zyn use is infrequent, with 70.8 percent of underage past-30-day pouch users reporting use on between one day and five days of the past 30 days.

    If most U.S. Zyn sales, and subsequent use, are among those aged over 21, the possibility exists that these products may be helping adult smokers to switch from combustible to noncombustible tobacco products. Despite this, the U.S. Truth Initiative has called for a nationwide ban of Zyn.  

    In the face of such calls, it will be inadequate for the industry to stress that these products are intended solely for adult smokers as an alternative to combustibles. The problem facing PMI and other oral nicotine product manufacturers is how to respond to claims of widespread use of their products by young people.

    There are two things that companies must do if they are to stand any chance of keeping their products on the market. The first is to show the extent to which these products are benefiting adults who smoke. The data required here involves showing the impact of an oral nicotine product such as Zyn on an adult smoker’s ability to completely switch away from smoking or to substantially reduce their use of combustible cigarettes over a six-month to 12-month period.

    Secondly, companies must quantify the extent to which their oral nicotine products are indeed being used by those below age 21. The CSUR’s Tobacco Product Prevalence Study is the only national probability-based study that collects data on a range of individual tobacco products among both adults and youth within the U.S. and provides timely estimates of use. As such, it can help manufacturers present important data to regulators on the actual extent of youth use of their products.

    Unless the industry assembles the evidence with which to respond to political and media commentators’ calls to ban oral nicotine products, these companies are going to face an increasingly difficult future. The calls to ban oral nicotine products, in the absence of data showing how widely specific products and devices are being used by youth, provides an indication of just how influential a coordinated campaign against a specific product or category of products can be. It is ironic that many of those calling for such bans, no doubt motivated by a commitment to public health, find themselves advocating for legislation that will narrow rather than expand the routes out of smoking.

    Neil McKeganey is the director of the Center for Substance Use Research in Glasgow, Scotland.
    Andrea Patton, is a behavioral epidemiologist and head of prevalence research within the Centre for Substance Use Research, Glasgow, U.K. Patton has over 15 years of experience working in public health for academia, regulatory bodies and industry leaders in Europe and the United States.
  • PMI Sued Over Zyn

    PMI Sued Over Zyn

    Photo: PMI

    In the first major legal challenge to oral nicotine pouches, a consumer has sued Philip Morris International over its popular Zyn brand, saying the product is addictive and harmful to young people, reports BNN Bloomberg.

    The plaintiff, Bailey Wolters, alleges addiction and dental issues as a result of his Zyn use. The lawsuit says that the pouches deliver more nicotine than cigarettes, and that PMI benefits from “Zynfluencers” who promote the brand on social media.

    The suit, which is seeking class-action status, also names as a defendant Swedish Match, which made the pouches before PMI bought it for $16 billion in 2022.

    According to the plaintiff, the companies failed to warn consumers about the risk of addiction and other harmful effects like cognitive issues, cardiovascular injuries, gastrointestinal problems and gum disease.

    PMI insists its pouches are intended only for existing users of nicotine products.

    The case was brought by Schlesinger Law Offices, whose initial lawsuit against Juul Labs investors including Altria Group expanded into thousands of legal actions and led to Altria’s eventual settlement of $235 million.

  • Health Groups Urge Pouch Prescriptions

    Health Groups Urge Pouch Prescriptions

    Photo: DW labs

    Leading health organizations are urging Canadian lawmakers to crack down on flavored nicotine products and make nicotine pouches available upon prescription only.

    In a full-page ad in The Hill Times, Action on Smoking and Health, the Canadian Cancer Society, the Canadian Lung Association, the Quebec Coalition for Tobacco Control, Heart and Stroke, and Physicians for a Smoke-Free Canada assert that flavors play a key role in attracting kids to nicotine products and call on the federal government to ban flavors, including mint and menthol, in e-cigarettes.

    The ad also calls for action to protect minors against the sale and promotion of nicotine pouches by making them a prescription-only product. Under the current federal rules, nicotine pouches authorized under the Natural Health Products Regulation can be legally sold to minors in convenience stores and promoted on television, billboards and social media, including by means of lifestyle advertising.

    “Several additional options are available to the health minister, like temporarily suspending the sale of nicotine products, which would also allow federal, provincial and territorial authorities to strengthen relevant laws and regulations. For example, nicotine pouches could be subject to many of [the] same provisions regarding promotion that apply to tobacco and vaping products,” said Cynthia Callard, executive director of Physicians for a Smoke-Free Canada, in a statement.

    The ad is in part a response to the success of Imperial Tobacco Canada’s Zonnic pouches, which Health Canada approved for sale in 2023. The health groups rebuffed the company’s insistence that its pouches are intended for adult smokers who want to quit. “Unlike other manufacturers of nicotine-replacement therapies, this company deliberately chose to distribute its product through convenience stores and promote them with lifestyle messaging and images of young adults,” said Flory Doucas, co-director and spokesperson of the Quebec Coalition for Tobacco Control.

  • The Looming Backlash

    The Looming Backlash

    Photo: Swedish Match

    Cracking down on Zyn will only harsh the buzz around the office.

    By Peter Clark

    The calls from Representative Chuck Schumer to “crack down” on Zyn nicotine pouches may harsh the buzz around the office. 

    A recent Bloomberg article found that this product has been gaining popularity among office workers. In the third quarter, Philip Morris International saw a 66 percent jump in sales.

    Schumer may aim to shield developing brains from nicotine, but only 1.5 percent of middle schoolers and high schoolers use nicotine pouches. Flavored nicotine products are critical to adults quitting smoking because they break the connection between nicotine and tobacco.

    If regulation is too heavy-handed, adults will be clamoring for their trusty pack of Marlboros. This initiative is a drag on workplace productivity for the following reasons: more smoke breaks, less focused employees and time lost to illness.

    Restricting Zyn pouches may make workers revert to cigarettes, and this is bad for business. The average smoke break is between 10 minutes and 15 minutes long. These constant breaks add up to approximately an additional week of vacation time.

    Not only is this unjust for nonsmokers, but employers feel the pinch. Studies have estimated that smoke breaks cost companies $3,077 ( per employed smoker) annually. Banning flavors and reducing the nicotine content in Zyn will have workers running for the nearest designated smoking area. 

    Schumer’s demand for regulation overstates the risks and overshadows the benefits. This fear-mongering stems from what Jeffrey Singer, a senior fellow at the Cato Institute, refers to as “Nicotinophobia.” The association between the dangers of cigarettes and harm reduction products that contain nicotine.

    Zyn pouches contain isolated nicotine salt but no tobacco. The danger lies in thousands of chemicals composing cigarette smoke. E-cigarettes also deliver nicotine without tobacco smoke. Public Health England has deemed them 95 percent safer than traditional cigarettes. If we have a safer alternative, it is foolish to ignore its benefits as a nootropic. 

    Studies have found that smokers report that nicotine has “beneficial effects on concentration and memory.” Nicotine also enhances performance on complex tasks. A double-blind study by Nature found that administering small amounts of nicotine (1 mg) boosted performance on intricate tasks. Past research even suggests that nicotine improves “IQ-related tasks.” Nicotine’s impact on IQ has caught the attention of tech mogul Peter Thiel, who has flirted with the idea of using nicotine patches for the nootropic effects.

    Banning or restricting nicotine pouches would have a negative impact on the productivity of former smokers who are Zyn converts. When a nicotine addict tries to quit, they experience temporary cognitive decline. Experts in the field of addiction treatment have observed that withdrawal feels “like the opposite of the drug.” Nicotine is no exception. A 2017 study conducted by the Pennsylvania State University found that nicotine deprivation among smokers had an adverse impact on working memory, “which is critical for our understanding of motivated decision-making.” Other researchers have found that nicotine withdrawal is also associated with decreased reaction time and a decline in verbal and spatial memory. 

    If Zyn users revert to cigarettes, employers will also suffer from reduced productivity due to smoking-related illnesses. The U.S. economy suffers over “$365 billion in lost productivity each year” because of tobacco-related ailments. Not only do chronic diseases contribute to lower productivity, but smokers are also at higher risk for infections—a 12 percent higher risk for viral infections and a 48 percent greater chance of “being diagnosed with respiratory illness,” leaving co-workers to pick up the workload of their sick peers, putting them under unnecessary stress.

    Lawmakers need to realize that targeting Zyn for the sake of America’s youth is misguided. Few kids are using this product, but the harm to adults extends beyond smokers. The impact of smoking-related loss in productivity reverberates throughout the economy. Making Zyn products less appealing to smokers will have our workforce taking excessive breaks, being less focused and being more likely to call out sick. If Schumer wants to tackle a public health crisis facing teens, he should look into automobile accidents, the leading cause of death among teens.

    Peter Clark is an Arizona-based writer and commentator. His work has been published by AzCentral, FEE, AIER, & Real Clear Markets. Follow him on X @blog_logic.
  • Snus Documentary to Screen in Spain

    Snus Documentary to Screen in Spain

    Image: fergregory

    Somos Innovacion announced the avant-premiere of the documentary How Sweden Stopped Smoking by award-winning Polish director Tomasz Agencki. The screening will take place on Feb. 27 at Espacio Balboa in Madrid and will include a panel discussion with leading experts in health and activism.

    This documentary delves into the story of how Sweden became a smoke-free nation. Through interviews with scientists, doctors, innovators and artists, Agencki spins a tale that examines the complex interplay of science, politics, history and personal will behind this “Swedish miracle.”

    “We are excited to share this inspiring story about the courage and creativity that made a healthier future possible for Swedes,” says Federico N. Fernandez, CEO of Somos Innovacion, in a statement. “We believe the lessons from Sweden’s journey can guide other nations to achieve the same progress.”

    Following the screening, a panel of experts composed of Fernando Fernandez Bueno, oncologic surgeon and prominent anti-smoking opinion leader; Josep Maria Ramon Torrell, head of the Tobacco Treatment Unit at Bellvitge Hospital and professor of medicine; Julio Ruades, popular YouTuber and spokesperson for the Spanish Association of Personal Vaporizer Users; Federico N. Fernandez, CEO of Somos Innovacion; and moderated by Carmen Escrig, coordinator of the Spanish Medical Platform for Tobacco Harm Reduction will share unique perspectives and discuss key lessons that inspire other nations to follow Sweden’s example in the fight against smoking.

    Space is limited. Reserve free tickets on Eventbrite: https://bit.ly/SueciaLibreDeHumo. This avant-premiere is in-person only; it will not be streamed.

  • BC Restricts Pouch Sales to Pharmacies

    BC Restricts Pouch Sales to Pharmacies

    Photo: StratfordProductions

    British Columbia has restricted the sale of nicotine pouches to drug stores, forcing users to consult a pharmacists prior to purchase, reports CBC.

    “By limiting access to these products and ensuring they are dispensed by trained health-care professionals, our goal is to prevent their misuse, especially among young people for recreational purposes,” said Health Minister Adrian Dix.

    The Canadian Cancer Society applauded the move, noting that while youth smoking rates in B.C. are down, other methods of nicotine consumption are up significantly.

    “With the introduction of flavored nicotine pouches last year, youth once again can become addicted to these new tobacco industry products,” it said in a statement.

    BAT subsidiary Imperial Tobacco Canada, manufacturer of the Zonnic nicotine pouch brand that was authorized for sale by Health Canada in October 2023, said British Columbia’s move would make it harder for smokers to quit.

    “It is mindboggling that the only cessation product in BC that is currently stored behind the counter in convenience stores with retailers requiring age-verification is being targeted by today’s announcement,” said Eric Gagnon, vice-president, corporate and regulatory affairs at Imperial Tobacco Canada, in a statement.

     “If today’s announcement was truly about protecting youth against nicotine, we question why Premier Eby isn’t putting the same restrictions on the other cessation products that contain nicotine and are available over the counter without proof-of-age,” he added.

    In November, federal health minister Mark Holland said regulators had been “duped” and vowed to close the loophole that allowed Zonnic to be sold openly.

    “There are very serious questions about what the tobacco industry is doing here and what their intention is. And it would seem that their intention is to addict new young people to nicotine, which is disgusting,” Holland said at the time.

    Zonnic does not contain tobacco, and because the pouches contain less than four milligrams of nicotine each and are not inhaled, they do not fall under existing federal or provincial tobacco or vaping legislation.

  • VTA Stands up for Lower-Risk Alternatives

    VTA Stands up for Lower-Risk Alternatives

    The Vapor Technology Association (VTA) today announced the launch of a cable news ad buy in the U.S. targeting Senator Chuck Schumer and his proposed ban on Zyn nicotine pouches. The ad runs this week on FOX News and FOX Business during key programming slots, including “FOX and Friends,” “Kudlow,” and “The Five.”

    The ad connects a proposed ban on e-cigarettes with a ban on all less harmful, tobacco-free nicotine products, such as Zyn nicotine pouches. The ad also calls out officials at the Food and Drug Administration’s Center for Tobacco Products (CTP) for repeatedly blocking access for millions of Americans to e-cigarettes as harm reduction tools.

    “Sen. Schumer and the FDA are simply wrong: wrong on e-cigarettes, wrong on Zyn, and wrong on the science,” said Tony Abboud, executive director of VTA, in a statement. “Rather than give adult smokers broader access to a greater number of lower-risk alternatives, the FDA and CTP have instead imposed a de facto ban on e-cigarettes—and Zyn is next.”

    The ad states that Schumer’s proposed Zyn ban mimics his attempts to eliminate e-cigarette use nationwide, amounting to an assault on Americans’ personal freedom to choose lower-risk, tobacco-free nicotine products that overwhelming scientific and medical data demonstrates are effective at helping adults quit smoking.

     “Why is the FDA denying access to a wide range of less harmful alternatives to combustible cigarettes that could otherwise be used by millions of adult smokers trying to quit?” asked Abboud.

    “Cigarettes kill. Rather than even acknowledging the settled science in support of e-cigarettes and other less harmful, tobacco-free nicotine products in recent years, the CTP has instead authorized nearly 900 new cigarettes for Americans’ use—but Sen. Schumer thinks it’s Zyn you need to be worried about.

    “The anti-nicotine FDA and congressional establishment has simply lost its bearings on the strategy of harm reduction, which it applies to every public health crisis, yet refuses to apply to the annual crisis of nearly half a million Americans dying from smoking every single year.”

     “VTA is running this ad buy because Americans deserve to know that less harmful nicotine products exist that can help adult smokers trying to quit. VTA supports Americans’ freedom to choose,” said Abboud.

  • The Potential of Pouches

    The Potential of Pouches

    Photo: Stefanie Rossel

    Some markets have been more receptive to modern oral products than others.

    By Stefanie Rossel

    The modern oral nicotine category continues growing but struggles to reach a wider global audience. Modern oral nicotine products, which are white, pre-portioned little bags comprising a nicotine-containing carrier material, are considered the advanced, cleaner version of Swedish snus, a pasteurized oral tobacco that is available as loose products or pouches and is credited with helping Sweden achieve its record-low smoking prevalence by offering smokers a less harmful way to consume nicotine.

    According to Euromonitor International, global sales of nicotine pouches grew from 17.09 billion units in 2022 to an estimated 20.77 billion units in 2023. The overwhelming majority of sales, however, take place in the U.S., where an estimated 14.97 billion units were sold in 2023 compared to 12.61 billion units in 2022. Sweden ranks second, with 1.8 billion units sold in 2022 and an estimated 2.2 billion units sold in 2023. It is followed by Denmark with a forecast 745.3 million units in 2023 (versus 589.2 million units in 2022), Pakistan and Austria with estimated sales of 695 million units and 477 million units, respectively.

    As far as value is concerned, Euromonitor estimates the category to be worth $10.29 billion globally, up from $8.47 billion in 2022. By 2027, the business intelligence firm expects the segment’s value to reach $15.99 billion. Despite their relentless expansion, modern oral nicotine products remain a niche within a niche—they are a small part of a larger oral tobacco market, which accounted for only around 2 percent of the global nicotine industry in 2022.

    Raphael Moreau

    In the U.S., retail sales of nicotine pouches generated $8.58 billion in 2023 compared to $7.23 billion in the previous year. Raphael Moreau, head analyst at Euromonitor, expects the U.S. modern oral nicotine market to reach $11.03 billion by 2027.

    “The U.S. has benefited from a solid legal framework, with the Food and Drug Administration controlling the market chain, requiring authorization to market, nicotine health warnings and premarket assessment,” Moreau says. “Generally, the U.S. has a strong tradition of oral, i.e., chewing, tobacco. This definitely helped. Nicotine pouches are convenient and discreet to use, and they are taking share from chewing tobacco and Swedish-style snus, which has boosted U.S. sales.”

    As consumers become more familiar with the product, Moreau anticipates the market to continue growing rapidly. In 2023, just under 3 percent of the U.S. adult population consumed modern oral nicotine products. “Over the next five years, we will see an increase because of more awareness of the brands,” he says. “There is a wide flavor selection, which appeals to consumers who can’t use flavored vape products anymore as they are banned. The return to office work after the Covid pandemic will also contribute to the category’s growth: When working from home, people were more likely to vape. At the office, pouches are more convenient. Besides, the products are used as a cessation aid away from cigarettes and other combustibles.”

    Moreau suspects that the majority of modern oral nicotine is used in combination with other tobacco products. “This also has caveats because potentially, consumers may just try them and not become regular users, so prediction is difficult,” he says.

    With a 77 percent category retail value share in the third quarter of 2023, Zyn remains the U.S. market leader.
    (Photo: Swedish Match)

    Zyn Pulls Further Ahead

    With a 77 percent category retail value share in the third quarter of 2023, Zyn is the U.S. market leader by a large margin. Shipment volume of Zyn nicotine pouches amounted to 104.5 million cans during that period, a 65.7 percent increase compared to the third quarter of 2022, according to Philip Morris International. PMI became the owner of the Zyn brand through its acquisition of Swedish Match for $16 billion in late 2022. The move has given PMI a comfortable lead in the U.S. nicotine pouch market, where it previously had no presence to speak of, and will help the company to achieve its goal of becoming substantially smoke-free by 2023.

    At PMI’s Investor Day Conference in September 2023, Lars Dahlgren, president of smoke-free oral products and CEO of Swedish Match, forecast “stellar growth” for the product also because Zyn is cheaper than cigarettes, retailing at $5 per can compared to a price of $8 for a pack of cigarettes. According to news platform Seeking Alpha, the brand is popular among Generation Z, which has otherwise been a hard market for traditional tobacco companies to crack.

    In addition to Zyn, some other brands have made gains recently, according to Moreau. With a retail volume of 15.4 million units and a value share of 11 percent in 2022, Altria’s On! Brand ranks second behind the market leader, followed by Swisher International Group’s Rogue nicotine pouches, with 7.9 million units sold during that period.

    The “attractive category dynamics” in the highly competitive U.S. nicotine pouch market also holds potential for new players. In June 2023, ITG Brands acquired a range of nicotine pouches from Canada-based TJP Labs in order to facilitate its entry into the U.S. modern oral market. Following further consumer testing, ITG Brands plans to launch 14 pouch product variants in 2024.

    “The category still is very young, so there is no strong brand loyalty, and consumers are likely to try new brands,” comments Moreau. “This makes the market attractive to new entrants. And there’s quite a lot of room for them, as the category is growing very fast.”

    Regulation Required

    Except for the Nordic countries, where consumers have been familiar with snus for two centuries, the modern oral category is still underdeveloped in the rest of the world.

    Japan Tobacco International, present in the segment with its brand Nordic Spirit, sees vast untapped potential. Nordic Spirit was developed in Sweden and has rapidly grown since its launch in 2018. The product is available in the U.K., Ireland, the Philippines and Switzerland. “While the tobacco-free nicotine pouches category is still in its infancy, we already see that many adult tobacco and nicotine consumers globally will be interested in trying the product, helping the new category to grow significantly over the coming years,” says a JTI spokesperson. “For example, smoke-free nicotine pouches have become increasingly popular in the U.K. Responding to this growing trend, the Nordic Spirit brand has witnessed growth and increased its market share to around 45 percent.”

    According to Euromonitor, U.K. consumers bought 92.1 million nicotine pouches in 2022. In 2023, the category there grew 54.6 percent.

    Pakistan, however, was the country with the largest year-on-year growth rate, with sales in 2023 expected to be 70.7 percent, up from the 127.8 million units sold in 2022. In Pakistan, an estimated 10 million people use smokeless tobacco, which corresponds to more than 40 percent of the country’s total tobacco market. In December 2022, BAT announced that its modern oral nicotine brand Velo, which it had launched in Pakistan in early 2020, had achieved a monthly volume of more than 40 million pouches in the country, making it the company’s third-largest market for nicotine pouches.

    Most growth in the category will come from Asia-Pacific and Eastern Europe, according to Moreau. In Poland, for instance, the category increased by 69.5 percent in 2023. “The Czech Republic is also interesting because it had quite strong demand in 2022 and 2023,” Moreau says. “This is likely to stay [this way], particularly since nicotine pouches are regulated in the country now.”

    In May 2023, Czechia’s Ministry of Health issued a decree, modeled on tobacco and e-cigarette legislation, which regulates the composition, appearance, quality and characteristics of nicotine sachets. It also defines the legal age for sale and requires manufacturers and importers of nicotine sachets to register their products with the Ministry of Health. The legislation entered into force on July 1, 2023.

    Other countries, by contrast, have been less accommodating, with the Netherlands and Belgium banning modern oral products in April 2023 and October 2023, respectively. The European Commission, too, is reportedly mulling a ban on nicotine pouches for the common market. The products are also prohibited in Australia and New Zealand.

    “History has repeatedly shown that bans of legal products often do not lead to their intended goals and instead encourage criminal gangs to increase supply of illegal products to make up for the shortfalls,” warns JTI’s spokesperson. “Instead of an outright ban, we should aim for an evidence-based regulatory framework that acknowledges the potential of nicotine pouches to reduce the risks associated with smoking. At the same time, we must ensure that oral nicotine products aren’t marketed or sold to minors under any circumstances.”

    In Germany, modern oral tobacco continues to operate in a regulatory gray area. Nicotine pouches are classified as food in the country, which makes them subject to European food law. Because the EU has not approved nicotine as a food or food ingredient, this means that nicotine pouches cannot be legally traded in Germany.

    Despite the German Federal Institute for Risk Assessment’s October 2022 acknowledgement that tobacco-free nicotine pouches could reduce the health risks compared to smoking, the products’ legal status remains unchanged. “It will only change after a decision at EU level,” says Moreau. “Germany is a typical case where an uncertain or hostile landscape and a lack of familiarity with the products are two negative factors that are feeding each other. Whenever the legal status is unclear, not exactly defined or restrictive, retailers will basically avoid selling them. Therefore, consumers will not be aware of the products, and they will not trust them. In Germany, nicotine pouches are still available online, but the products are obviously now not as widespread as [they would have been] if they were sold in stores.”

    Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.