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The US nicotine pouch market is currently the world’s largest in value and number of users. Regulation may impact its growth rates in the future, but consumers continue to be attracted to the product, whose popularity has grown rapidly, thanks also to the expansion of leading brands in the sector.
The use of nicotine pouches nearly doubled among US high school students (about 15 to 18 years old) between 2023 and 2024, according to a new study from the Keck School of Medicine of the University of Southern California (USC). In 2023, 20% of the teens surveyed had used e-cigarettes in the previous 12 months, compared to 17.6% in 2024. But dual use of e-cigarettes and nicotine pouches increased: 3.6% of teens had used both products in the previous 12 months in 2024, compared to 2.1% in 2023. In 2024, more teens reported that they had used both products in their lifetime.
This market is also one of the most dynamic. According to TobaccoIntelligence forecasts, there will be more than 8.5m users in the US by 2025, or eight times the 2020 figure. The market shows favourable prospects for growth and expansion in the medium term, and its value is estimated to grow by about 40% in 2025 over 2024, to reach more than $4.5bn.
A strong retail network has been built up over the years that mainly operates in the offline channel. Consumers seem to prefer making their pouch purchases in bricks-and-mortar shops, but several websites also cover the online space, providing product information and access to multiple brands and product variations.
There are also opportunities in the retail sector for pouches to compete with and complement vaping: given the development of the e-cigarette market in the US, vape shops represent an alternative distribution channel for nicotine pouches. Because nicotine pouches are so popular, vape shops could complement their portfolio by adding a new and trendy alternative to smokeless oral nicotine.
Innovation has led to variety consumers enjoy
There have also been multiple innovations over time. For example, tobacco-free oral replacement products have emerged, both with and without nicotine, that have been attractive to consumers who want to avoid tobacco, potentially eliminating all nitrosamines and other tobacco components that may still be present in traditional pouches made with tobacco-derived nicotine (extracted from tobacco leaves).
Several brands in the US offer pouches made with synthetic nicotine (not derived from tobacco leaves). And then there are still other products that use alternative components and active ingredients to attract users with a completely nicotine-free proposition. Active ingredients such as caffeine, theine, vitamins and nootropics, to name a few, are used in these products, replacing nicotine as the main active ingredient.
The country’s leading nicotine pouch brand, Zyn from Philip Morris International (PMI) (and previously from Swedish Match), has maintained a dominant position with its offers that come in pouches of 3 mg and 6 mg of nicotine. In contrast, in the US vape market, the most common nicotine concentration in 2024 was 50 mg/ml, near the high end of the range.
However, issues such as counterfeit products entering the US, under-age use and irresponsible marketing present some latent risks to the industry that manufacturers will need to address. Social influence and curiosity are among the reasons for the continued growth of nicotine pouches among young people, but health concerns have also played a role in their adoption.
Will pouches be targeted like e-cigs before them?
The success of nicotine pouches is clear, but it does raise some questions. For instance: is the current chorus of scepticism about pouches just an anomaly, or is it the precursor to a sustained campaign against these products, similar to what the vaping market has experienced?
Given the centrality of nicotine to this product category and the significant role played by Big Tobacco companies in the market, it is all too easy to imagine pouches becoming the next target. The fact that pouches are generally low in nicotine, for example, may not count for much if influential voices focus on the higher-nicotine options.
It won’t help matters that pouches are so popular among young people and that they are even easier to hide and consume unnoticed than e-cigarettes. The best hope for the market may be that some sense of nicotine panic fatigue sets in; by now it’s fairly evident that all the supposed horrors of vaping haven’t led to the end of the world or even a widespread resurgence of smoking.
– Antonia Di Lorenzo TobaccoIntelligence staff
Photo: RDNE Stock project
