The nicotine pouches market size was valued at US$ 3,532.92 million in 2022 and is expected to reach US$ 5,897.49 million by 2030; it is estimated to register a CAGR of 6.6% from 2022 to 2030.
Nicotine pouches contain nicotine and flavorings, offering a discreet and convenient option for users seeking tobacco-free product. The popularity of nicotine pouches is growing due to several factors such as convenience, and perception of reduced health risk compared to other conventional tobacco products. Key manufacturers offer nicotine pouches in many flavors to appeal broad consumer base. However, in many countries, regulatory bodies have implemented age restrictions, strict marketing regulations, and warning label regulations to mitigate risks related to nicotine consumption.
On the basis of distribution channel, the market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. The global nicotine pouches market share for the convenience store segment was the largest in 2022 and online retail is expected to register a higher CAGR from 2022 to 2030. Convenience stores are restricted to a limited area and are smaller than supermarkets and hypermarkets. The significant difference between supermarkets and hypermarkets, and convenience stores is that convenience stores stay open till late. Convenience stores are integral distribution channels for nicotine pouches, providing a readily accessible option for consumers seeking a quick and convenient purchase. The stores are usually located on the roadside and at bus or railway stations. Online retail platforms provide a convenient and accessible shopping experience. Customers can browse various varieties of nicotine pouches from their homes without visiting physical stores. Additionally, online retailers often offer an incredible range of products, allowing customers to choose desired products by browsing different flavors and strengths per their preferences.
The market is segmented into five main regions-North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America. North America held the largest revenue share of the market in 2022. North America is one of the biggest regional markets for the nicotine pouches market in the world. While traditional cigarette consumption continues its downward spiral, the demand for nicotine pouches is growing. As more individuals seek alternatives to traditional tobacco products, nicotine pouches emerge as a smoke-free option, allowing users to satisfy their nicotine cravings without the combustion-related health risks associated with smoking. Nicotine pouches provide a way to satisfy nicotine cravings without exposing users to the harmful byproducts of combustion, contributing to the overall decline in the smoking rate. The ease of use is a major draw for consumers seeking a low-maintenance nicotine fix. All these factors are driving the demand for nicotine pouches in North America.
Impact of COVID-19 Pandemic on Nicotine Pouches Market
The COVID-19 pandemic adversely affected the market in 2020 due to the shutdown of manufacturing facilities and restrictions on transportation and logistics. Disruptions in supply chains also hampered the supply of nicotine pouches. Manufacturers adapted their processes to international and domestic restrictions imposed by government, to protect their employees from the SARS-CoV-2 infection. Many nicotine pouch producers temporarily halted their operations or allowed production processes with limited employee strength. During the onset of pandemic, lockdowns and restrictions led to temporary decline in purchases, from various distribution channels such as supermarkets, hypermarkets and convenience stores. However, according to the British American Tobacco report published in 2021, the consumers transitioned towards e-commerce sites for purchase of nicotine pouches. A report by Nicokick released in 2021, revealed 250% growth in the sales of nicotine pouches in the US during January to June 2020.
Despite these consequences, businesses started recovering as the governments of various countries brought relaxation in social restrictions. In 2021, rising vaccination rates contributed to improvements in the overall conditions across globe. Key market players operated at full capacities, thereby helping them to overcome the demand-supply gap. Moreover, successful vaccination drives have further eased the current scenario leading to a rise in business activities across the world.
Global Nicotine Pouches Market Breakdown - by Region
The report includes the segmentation of the global nicotine pouches market as follows:
The global nicotine pouches market is segmented based on strength, flavor, and distribution channel. Based on strength, the market is categorized into less than 6 mg/g, 6 mg/g to 12 mg/g, and more than 12 mg/g. In terms of the flavor, the nicotine pouches market is bifurcated into original/plain, and flavored (mint, berry, citrus, fruity, others). Based on distribution channel, the market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others.
By geography, the market is broadly segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The North America market is further segmented into the US, Canada, and Mexico. The nicotine pouches market in Europe is sub-segmented into Germany, France, the UK, Italy, Sweden, and the Rest of Europe. The Asia Pacific nicotine pouches market is further categorized into China, Pakistan, Japan, South Korea, and the Rest of Asia Pacific. The market in the Middle East & Africa is further segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The South & Central America market is further categorized into Brazil, Argentina, and the Rest of South & Central America.
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