Al Fakher says it has officially entered the nicotine pouch market with eight new products now available on Hookah.com. The company previously announced its intentions to launch a new tobacco-free product line and expand beyond its core hookah business into the fast-growing modern oral category at the Total Products Expo in March. The pouches come in four flavors inspired by the brand’s heritage—Frosty Apple, Spearmint, Mango, and Wintergreen—and are offered in 4 mg and 8 mg strengths, priced at $5.99 per can.
Al Fakher said the move positions the company to tap into a global category growing at roughly 30% annually, while targeting consumers familiar with its flavor portfolio, particularly those connected to hookah culture.
A new survey among adult smokers in South Africa found strong support for risk-based tobacco regulation, with eight in 10 respondents backing policies that differentiate between cigarettes and less harmful alternatives. The research suggests that while 71% of smokers currently plan to continue smoking, improved access to accurate information and appropriately regulated smoke-free products could more than double switching rates, potentially enabling up to 3.3 million smokers to move away from cigarettes. The research was commissioned by Philip Morris International and conducted by a U.S. research firm, Povaddo.
The findings also highlight significant awareness gaps, with up to 70% of smokers unfamiliar with alternatives such as nicotine pouches, and many citing health concerns and cost as barriers to switching. More than 80% said affordability, availability, and access to clear risk-reduction information would influence their decisions, while roughly three-quarters warned that overly restrictive policies could push consumers toward illicit products, underscoring the role of balanced regulation in shaping market outcomes.
On May 8, the Texas Supreme Court ruled that oral nicotine pouches qualify as taxable tobacco products under state law, finding that they fall within the definition of “tobacco substitutes.” The court determined that because the products contain nicotine derived from tobacco and are combined with plant-based materials, they meet the criteria for taxation despite not containing traditional tobacco leaf.
According to Law 360, the decision clarifies the tax treatment of nicotine pouches in Texas, aligning them with other tobacco products and potentially affecting pricing and regulatory obligations for manufacturers and retailers operating in the state.
Haypp Group announced that it has resumed operations in Alabama, expanding access to nicotine pouch products for verified adult consumers as part of its broader U.S. growth strategy. The company said its platforms, Nicokick and Northerner, will offer more than 300 products in the state through direct-to-consumer delivery, particularly targeting areas with limited retail availability.
Haypp emphasized that its return to the Alabama market will operate under strict compliance standards, including robust age and identity verification to ensure sales are restricted to adults 21 and over. The move reinforces the company’s focus on regulated online distribution channels as it continues to expand its presence in the U.S. nicotine market.
In June 2025, Alabama enacted major changes to its vape and alternative nicotine laws, prompting many companies in the industry to pause sales as parts were clarified and enforcement evolved to ensure compliance.
Turning Point Brands reported first-quarter 2026 net sales of $124.3 million, up 16.8% year-over-year, driven primarily by strong growth in its Modern Oral segment. The Stoker’s division, which accounts for the majority of revenue, saw net sales rise 48.1% due to triple-digit growth in modern oral products, while the Zig-Zag segment declined 22.4% amid lower U.S. shipments. Gross profit increased 14.6% to $68.3 million, though net income fell 19% to $11.7 million, reflecting higher investment in sales, marketing and distribution.
The company said it is investing heavily to capture growth in the evolving nicotine category, particularly in nicotine pouches, and raised its full-year outlook for Modern Oral sales. Turning Point Brands expects Modern Oral gross sales of $280–$300 million in 2026 and remains focused on scaling the segment while leveraging cash flow from legacy brands to support long-term growth.
About a third of the way through the year, the slew of proposed legislation throughout the United States has shown some clear trends.
By Marissa Dean
This year has been fast-moving, with many developments, some seemingly small. But when put together, these developments show some common threads and themes, especially when looking at the tobacco taxation and legislation data.
At the Nicotine Resource Consortium, we track relevant legislation as it moves through the state and federal levels. While not every bill or regulation passes and gets put into action, it’s clear through what we’ve seen so far this year that there are some commonalities among states when it comes to tobacco product taxation.
Broadly, many states are imposing higher taxes on both traditional tobacco products and vapor products. For example, Iowa has proposed a tax hike of more than double for cigarettes while taxing vapor products at a combined 50% wholesale rate. New York has proposed an increase in tobacco product tax from 75% to 129% of the wholesale price and a vapor product tax of 48% of retail receipts, more than double the current tax rate. Washington has proposed a new tax of $0.015 per cigarette and $0.30 per mL for vapor products. The state would tax tobacco products other than cigars at 100.05% of the taxable sales price and cigars at 95%. These are just a few examples of the exponential tax increases many states are proposing. We are seeing an uptick in states imposing inventory and floor taxes as well as individual product taxes.
These proposed tax increases follow the trends that CSP noted as likely in January of this year: “With uncertainty around state budgets, many states are likely to consider tobacco excise tax increases to address shortfalls. In 2025, 10 states enacted new or increased tobacco and nicotine product excise taxes, which was higher than in recent years. Additionally, some states that currently do not tax vapor products or nicotine pouches could introduce legislation levying excise taxes on those categories.”
CSP was correct in this evaluation: Along with increased taxes, many states are taxing vapor and alternative nicotine products separately from traditional products such as cigarettes. We’ve seen an increase in legislation specifying definitions of snus/pouches as well as electronic-nicotine delivery systems (ENDS) and vapor products. Many states are now taxing these products separately as their own defined products. Other states are lumping these products under the term “other tobacco products,” which generally include products other than cigarettes and cigars.
Many states are proposing new and stricter licensing requirements and restrictions as well. We’ve seen a large number of proposed bills requiring very specific information and fees for retail, distribution, and manufacturing licenses in the tobacco and nicotine sector. Some states have even proposed requirements that would prevent out-of-state entities from distributing and selling products within the state without a local agent. These requirements seem to have multiple goals: increasing state revenue and strengthening compliance and regulation. There have been many states focusing on location of retail establishments and implementing age verification measures; both aspects have the goal of preventing youth usage and protecting public health.
Of the legislation we’ve been tracking, here is a breakdown of where the bills relating to retail regulations stand:
The other main trend we’ve noticed is an increase in tobacco tax revenue allocations toward health-related funds or public health initiatives. Many states are allocating tobacco tax revenue to youth prevention programs, cancer research, health care trust funds, and tobacco cessation programs. There has been a large focus on youth education on the harms of tobacco and nicotine products.
The takeaways from these trends are that tobacco and nicotine product taxes are increasing, and governments are beginning to note the differences between traditional tobacco products and other products. We’re seeing vapor products being taxed separately from cigarettes, and nicotine products being taxed differently than traditional tobacco products. States are focusing more on retail and distribution regulation and licensing as well, and there is a large focus on using tax revenues to fund health initiatives across states. Overall, it seems that states are realizing that all products are not made equally, resulting in the separation of product definitions and tax structures, and putting in efforts to curb illicit products and youth uptake while simultaneously using the revenue from these products to increase access to public health initiatives with the goal of creating a healthier population.
This article is in no way a complete overview of the state of tobacco and nicotine legislation across the United States. The trends and thoughts here were compiled from a combination of NRC’s legislation analysis and the use of PolicyNote’s AI Assistant for certain trend data as well as CSP’s early forecast opinions and NATO tax data.
Nicokick.com and zone nicotine pouches are expanding their motorsports partnership for the 2026 NASCAR Kansas race, using the platform to drive consumer engagement and product visibility. The campaign includes the exclusive launch of a new zone Cranberry pouch and a limited-edition flavor mix tied to driver Kyle Busch, alongside co-branded car livery and promotional activity. The collaboration highlights the growing role of e-commerce in the nicotine pouch category, with Nicokick positioning itself as a regulated, age-verified channel to reach adult consumers.
Ukraine is preparing to tighten regulation of nicotine pouches through draft law No. 14110-d, which would ban their sale to minors and limit advertising, according to Mykhailo Radutskyi, head of the parliamentary health committee. He said current anti-tobacco laws, aligned with European directives, do not adequately cover newer nicotine products such as pouches and snus, leaving gaps in rules on sales and promotion.
The proposal, developed by the health committee of the Verkhovna Rada, also addresses broader issues, including enforcement against e-cigarette components entering the market, and pending requirements for larger health warnings on cigarette packs. Radutskyi cited rising tobacco use, particularly among youth, as a key reason to update the legislation.
The U.S. Food and Drug Administration confirmed it will not block production or sales of Fontem US’s Zone nicotine pouches while a lawsuit over the product’s pending premarket tobacco product application proceeds, Law 360 reported. Fontem argued that the agency unlawfully delayed reviewing its application, leaving the product in regulatory limbo.
The FDA said it will not take enforcement action during the litigation, allowing the pouches to remain on the market. Fontem recently voluntarily dismissed its suit in Texas and plans to refile in Washington, D.C. The case underscores ongoing tension between regulators and manufacturers over PMTA backlogs and the treatment of newer oral nicotine products, which differ from traditional cigarettes and vapes.
According to Law 360, industry observers believe the court battle could set a precedent for how the FDA handles delayed applications and exercises enforcement discretion in the growing nicotine pouch sector.
Al Fakher, best known for its hookah products, announced the launch of Al Fakher Nicotine Pouches today (March 31) at the Total Products Expo in Las Vegas, marking the brand’s entry into the tobacco-free oral nicotine category. The product line debuts with four flavors—Frosty Apple, Spearmint, Mango, and Wintergreen—each offered in 4 mg and 8 mg strengths, and will roll out broadly in April 2026 following the show.
