A coalition of attorneys general from 19 states and jurisdictions has urged Formula 1 and the Fédération Internationale de l’Automobile (FIA) to end all sponsorships involving tobacco and nicotine products, including nicotine pouches. In a letter sent June 8, the coalition argued that nicotine-related sponsorships connected to Formula 1 teams and events could expose younger audiences to marketing for addictive products and undermine longstanding public health efforts aimed at reducing youth nicotine use.
The letter cites Formula 1’s growing youth audience and increasing reach through social media, streaming platforms, and partnerships with consumer brands as factors heightening concern over nicotine product promotion. The coalition also referenced the 1998 Tobacco Master Settlement Agreement and noted that more than 160 public health organizations made a similar appeal earlier this year, calling on Formula 1 to eliminate tobacco- and nicotine-related sponsorships from the sport.
A Stars and Stripes editorial published last week argues that the U.S. Department of Defense is facing a “nicotine policy disconnect” in its ranks, highlighting what it describes as inconsistent messaging across leadership and clinical guidance. The piece’s author, Timothy Vermillion, a clinical social worker, said that roughly 30% of active-duty service members use nicotine, framing it as an entrenched feature of military life rather than a behavior likely to be eliminated through abstinence-based policy alone. The article criticizes January DOD clinical guidelines that emphasize quitting and raise concerns about vaping while largely omitting nicotine pouches, arguing this leaves a gap between policy and on-the-ground behavior.
The commentary also points to senior military leadership acknowledging nicotine use in operational environments and contrasts that with what it calls outdated or unrealistic cessation-focused guidance. It argues that combustible tobacco remains the primary health risk and that harm reduction approaches—particularly switching to non-combustible products such as nicotine pouches—are underrepresented in official guidance. The article concludes that the DOD must better align clinical policy with operational reality to maintain credibility, support readiness, and address long-term health outcomes for service members.
Today (May 21), the U.S. Food and Drug Administration published a programmatic environmental assessment covering nicotine pouches and other oral nicotine products reviewed through the premarket tobacco product application (PMTA) process. The assessment applies to products categorized as “other,” including nicotine pouches, lozenges, tablets, gums, discs, dissolvable tobacco products, and nicotine-infused products, while excluding traditional smokeless tobacco products such as snus, dip, and chewing tobacco.
The FDA concluded that the environmental impact of these products is generally minimal, citing the absence of airborne emissions during use and relatively limited environmental contamination from product waste. According to the agency, these products reduce or eliminate secondhand and thirdhand exposure risks compared with combustible products, while the waste generated contains comparatively fewer harmful chemicals that persist or bioaccumulate in the environment.
The agency said the assessment is intended to support transparency and may be referenced by FDA reviewers evaluating individual product applications. However, the FDA emphasized that authorization decisions will continue to be made on a case-by-case basis based on the specific scientific evidence submitted for each product.
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.
