U.S. Nicotine Pouches Market Size, Share & Trends Analysis Report By Product (Tobacco-derived, Synthetic), By Flavor (Original/Unflavored, Flavored), By Strength, By Price Range, And Segment Forecasts, 2024 - 2030

U.S. Nicotine Pouches Market Size & Trends

The U.S. nicotine pouches market size was estimated at USD 988.4 million in 2023 and is expected to grow at a CAGR of 33.6% from 2024 to 2030. Growing awareness among consumers about the risks associated with smoking has compelled many smokers to switch to nicotine pouches. Data released by the U.S. Centers for Disease Control and Prevention (CDC) in 2020 revealed that the majority of deaths (55%) in smokers are due to lung cancer (29%) and other respiratory diseases (26%). Another 34.7% of deaths in smokers are attributed to cardiovascular diseases. Nine out of ten (89.7%) early deaths in smokers can be traced to the toxic, carcinogenic, cloud of smoke inhaled into the lungs. Cigarettes cause another 41,000 deaths in non-smokers due to second-hand smoke. These stats have driven the consumption of nicotine pouches over cigarettes, fueling market growth.

U.S. nicotine pouches accounted for a market share of over 30% in the global nicotine pouches market in the year 2023.

Rutgers, one of America's leading public research universities, published a report in March 2022 that assesses consumer awareness and interest in nicotine pouches among U.S. smokers. About 1,018 smokers in the U.S. were surveyed about their knowledge of nicotine pouches and the study found that approximately 29% of smokers were aware of these products, 6% had tried the product, and 17% were interested in trying it.

The nicotine pouches market has been witnessing strong growth over the last few years and this trend is expected to continue throughout the forecast period. Nicotine pouches come in various flavors, such as original (unflavored), mint, fruit, coffee, cinnamon, peppermint, black cherry, and citrus. There has been an increase in the consumption of and demand for flavored nicotine pouches in developed and developing countries.

Market Concentration & Characteristics

The U.S. nicotine pouches market is characterized by moderate degree of innovation, with businesses continuously focusing on differentiating themselves through unique experiences and offerings. Nicotine pouches have significant development potential as a market because they appeal to a large segment of adult tobacco consumers who want a discrete alternative to smoking and smokeless tobacco. The competition grew in 2020 during COVID-19 as major cigarette makers and several smaller businesses increased their store and regional footprints for respective portfolios of nicotine pouches, frequently along with strong advertising activities.

The growing popularity of nicotine pouches among consumers is likely to push manufacturers to launch new products. Key players are relying on mergers & acquisitions, product portfolio expansions, and awareness campaigns to promote new products. For instance, in May 2022, Philip Morris International acquired Swedish Match AB for USD 16 billion to expand its product offerings in the U.S. market. Swedish Match AB’s popular products include ZYN nicotine pouches, which are tobacco-free and rapidly rising in popularity in both the U.S. and Scandinavia. The declining percentage of daily cigarette users also boosts the sales of tobacco-free alternative products.

Consumer purchase decisions are significantly influenced by advertising and marketing tactics. In addition, they have a big impact on consumers' brand preferences and frequently persuade them to switch from one brand to another. As a result, businesses are adopting strategic marketing programs to help them influence the customer segments they are targeting. Companies have been emphasizing products with low nicotine content due to the rising demand for organic goods with low nicotine content.

Product Insights

The U.S. tobacco-derived nicotine pouches market accounted for the revenue share of 96.5% in 2023. There are roughly 10 million traditional smokeless tobacco users in the U.S. alone. Many users enjoy the satisfaction of nicotine but also understand the negative health consequences of using chewing tobacco, including oral cancer. This is why chewing tobacco alternatives, like Fully Loaded Chew and Smokey Mountain, have increased in popularity in recent years. However, tobacco-derived nicotine, found in many products, still contains some of the same compounds that are known carcinogens found in traditional smokeless tobacco products, although at lower concentrations.

The U.S. synthetic nicotine pouches market is expected to grow at a CAGR of 46.4% over the forecast period. The increasing number of awareness programs regarding the adoption of tobacco-free products among the masses in the U.S. Furthermore, the growing inclination of the adult population toward products that are 100% tobacco-free has driven the demand for synthetic nicotine pouches among Americans. For instance, the U.S. Surgeon General launched a report entitled “Smoking Cessation: A report of the Surgeon General” in 2020. The report listed a number of conclusions about the prevention and quitting of smoking in the U.S. by adopting public policies such as smoke-free air policies and state-wide tobacco control programs to curb the usage of tobacco-derived products. The country-wide strategic initiatives drive the market for synthetic or tobacco-free products in the U.S.

Flavor Insights

The flavored nicotine pouches market accounted for a revenue share of 89.64% in 2023. Oral nicotine pouches come in flavors such as mango, cinnamon, mint, and menthol, which are increasingly gaining popularity among American youths. Manufacturers in the market offer their products on various online platforms, including e-retailers, company websites, and third-party websites, to cater to the requirements of a large customer base and to expand product visibility, especially in the U.S. market.

The original and unflavored nicotine pouches market is projected to grow at a CAGR of 35.9% over the forecast period owing to American adults’ preference for tobacco-flavored replacements to gain a similar taste to that of original cigarettes.

Strength Insights

The strong (4-6 mg/pouch) nicotine pouches market accounted for a revenue share of 44.01% in 2023. American smokers prefer stronger alternatives that have a higher nicotine concentration and generally opt for branded products. The stronger nicotine pouches come in a range of flavors and formats, from a mini coffee pouch to a slim unflavored pouch to suit the preferences of a diverse customer base.Several factors that can affect how strong the effect of a nicotine pouch is on a user. Factors such as individual differences, moisture content, pH levels, and even flavoring, can influence the strength of the product. Key brands offer strong strength due to its growing demand among adults in the U.S. Some of the most popular products for strong strength are LYFT X-Strong Series (16mg/g), Skruf Super White Fresh (26mg/g), and Ace X Cool Mint Slim (20mg/g).

The normal nicotine pouches market is anticipated to grow at a CAGR 34.7% over the forecast period.Moderate tobacco users and those with a lower tolerance to the effects of nicotine prefer tobacco pouches with a regular strength type. However, the availability of various flavors and strength levels that allow customers to choose products tailored to their individual needs will drive the industry's growth. For instance, in June 2022, according to a press release from the White House Budget Office, the Biden Administration announced a reduction in nicotine concentration in finished tobacco products including nicotine pouches and sachets across the U.S. in an attempt to make them less addictive. The rule, expected in May 2023, would be designed to make it easier for tobacco users to quit and help prevent young people from becoming regular smokers.    

Distribution Channel

Sales of nicotine pouches through offline channels accounted for a revenue share of 93.42% in 2023 owing to the manufacturer’s expansion strategies including capacity expansion to boost the product sales through offline distribution channel, which is boosting the offline segment’s growth. For instance, in August 2022, NicoKick, a subsidiary brand of Haypp Group, is pleased to announce the opening of a new warehouse in Missouri City, Texas, to expand the company's distribution capabilities of nicotine pouches across the southern US and effectively cut shipping times for Texas consumers in half.

Sales of nicotine pouches through online channels is projected to grow at a CAGR of 43.5% over the forecast period. Manufacturers in the market are offering their products on various online platforms, including e-retailers, company websites, and third-party websites, to cater to the requirements of a large customer base and to expand product visibility, especially in the U.S. market. As the company expands, this new opening will increase production capacity in the region. In addition, the growing rate of digitalization has impacted the penetration of these products through online distribution channels. For example, Sweden-based e-commerce brand, NicoKick announced explosive sales of tobacco-free nicotine products of over 250% over the first six months of 2020.

Key U.S. Nicotine Pouches Company Insights

Some of the key players operating in the market include Altria Group, Inc., Triumph Tobacco Alternatives LLC, and Nicopods ehf.

• Triumph Tobacco Alternatives LLC was established in 2014 and is headquartered in Colorado, U.S. The company manufactures, markets, and distributes non-tobacco chew pouches available in both nicotine and nicotine-free variants. The company offers four flavors and three strengths such as same nicotine, less nicotine, or zero nicotine. It also offers a nicotine and tobacco free chew that contains caffeine.  The ingredients are all food grade with the exception of nicotine and uses pure nicotine extracted from tobacco.

• Altria Group, Inc., operates through three segments—smokeable products, smokeless products, and wine. These products are sold under brand names such as Marlboro, Black & Mild, Husky, and Red Seal. Marlboro is the most popular brand in the smokeable segment while Copenhagen is most popular brand in the smokeless segment.

Swisher, Philip Morris International, and Tobacco Concept Factory are some of the other participants in the U.S. nicotine pouches market,

• Swisher was founded in 1861 and headquartered in Jacksonville, Florida. It is an international lifestyle brand for adult consumers mainly known for its Swisher Sweets Cigars. The company also has a global manufacturing presence in Santiago, Dominican Republic; Esteli, Nicaragua; and Wheeling, West Virginia. The company operates in various product categories including smokeless tobacco products, premium cigars, and even non-tobacco brands among others.

• Tobacco Concept Factory (TCF) is a Poland-based company that started in 2003, and in 2007 the company started to focus on its brands in e-cigarettes and vaping accessories. In 2019, the company launched its tobacco-free nicotine pouches under the brand ‘77 nicotine pouches’. TCF is one of the leading manufacturers of nicotine pouches in the Polish market.

Recent Developments

• In April 2023, String Free, a brand of modern oral nicotine pouches, made its debut in the Swedish market. This launch represents the introduction of a new product option for consumers seeking a convenient and discreet nicotine experience. String Free's entry into the market highlights the ongoing expansion and innovation within the oral nicotine pouch category.

• In October 2022, Altria Group, Inc. announced a strategic partnership with JT Group (JT) and its expanded heated tobacco portfolio. The portfolio consists of a joint venture with a subsidiary of JT for the U.S. marketing and commercialization of heated tobacco stick products and expanded pipeline of wholly owned products.

U.S. Nicotine Pouches Market Report Scope

U.S. Nicotine Pouches Market Report Segmentation

This report forecasts revenue growth at country levels and provides an analysis of the latest trends and opportunities in each of the sub-segment from 2018 to 2030. For this study, Grand View Research has segmented the U.S. nicotine pouches market report based on product type, flavor, strength, and distribution channel:

• Product Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Tobacco-derived

  • Synthetic Nicotine

• Flavor Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Original/Unflavored

  • Flavored

    • Mint

    • Fruit

    • Coffee

    • Cinnamon

    • Others

• Strength Outlook (Revenue, USD Million, 2018 - 2030)

  • Light

  • Normal

  • Strong

  • Extra strong

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Offline

  • Online