InterTabac 2025 Insights | Caffeine and nicotine-free pouches hit the stage as white-label manufacturing and big players enter, heating up competition

At the September 2025 Dortmund (Vincent) Tabac Expo in Germany, 2Firsts discovered that nicotine pouch products have become one of the most popular categories at the event. The exhibitors mainly consisted of European brands, but companies from India, the United States, and China were also present. Many exhibitors showcased their own brands while actively promoting their company's OEM/ODM solutions to meet the demand from European and other regions.

Nordic heritage + Central and Eastern European manufacturing

Firsts observed a prevalent supply chain narrative at the event, highlighting a combination of "Nordic heritage + Central and Eastern European manufacturing": emphasizing the craftsmanship and standards of Sweden/Scandinavia, while also prioritizing large-scale production in countries like Poland, Lithuania, and Estonia to balance capacity and cost.

A salesperson from  Estonia brand told 2Firsts that while many brands at this exhibition emphasize the "Swedish" label, they are all eager to "emphasize heritage first, then efficiency". He pointed out that some brands register trademarks in countries such as Sweden, Norway, and Finland in Northern Europe, but actually produce more in Central and Eastern Europe. This is because Swedish nicotine pouch companies, such as Swedish Match, have successfully launched nicotine pouches in other European and American markets, and consumers have a certain level of recognition and awareness for Nordic brands and manufacturing.

One factory with multiple brands, catering to different taste preferences

In terms of product strategy, the concept of "one factory, multiple brands" is running parallel with a focus on differentiation positioning.

In the same factory, multiple sub-brands are often operated simultaneously with different levels of nicotine strength (ranging from "mild" to "strong"), flavors (such as cool mint and various fruit flavors), and packaging designs to cater to different retail settings and price points.

The refreshing mint flavor and its derivatives remain the best-selling flavors, followed closely by fruity flavors. Some brands are choosing to localize their flavors, as observed by 2Firsts, with a nicotine pouch brand from Sweden even introducing a "Jarger" flavor nicotine pouch.

Upon examining the products on display, it is evident that the overall flavor profile of nicotine pouches overlaps with e-cigarettes to some extent. However, due to the differences in nicotine release, nicotine pouch products aim for a more "clean and restrained" experience in terms of fragrance. In fact, after experiencing a pouch marked with a nicotine content of 5mg, the onset and duration of the effects last approximately 15 minutes.

Caffeine pouches and nicotine-free pouches are emerging as substitutes

Due to Germany's regulation of nicotine pouches taking a similar approach to "Novel Food," they are not authorized for sale as regular consumer products in local retail outlets.

Therefore, most brands and companies at the exhibition focus on B2B showcases and channel negotiations, rather than end-point retail. As a result, some exhibitors also display "non-nicotine" alternative products to comply with local regulations, such as caffeine/energy pouches and nicotine-free  pouches.

Caffeine pouches still need to meet requirements such as food laws, ingredients, and labeling. Caffeine has a similar stimulating effect to nicotine and can help relieve fatigue for a period of time. Nicotine-free pouches focus on flavor experience and oral freshness, without addictive properties, making them more like oral hygiene products.

A product sales representative from a Swedish company believes that in the constantly changing regulatory environment in Europe, introducing bagged products such as gum with fresh flavors to the market is a way to cultivate consumer habits and preferences before they become mainstream.

In contrast, CBD oral pouches are still hindered by factors such as the "novel food" framework and lack of safety evidence in the EU/Germany, and have not become the main product category for most exhibitors in Europe. Even though some brands are showcased, they are not as common overall as nicotine pouches and caffeine pouches. CBD oral pouches are often displayed alongside other cannabis products.

White label manufacturing is popular with large enterprises entering the market

Looking back in history, nicotine pouches have their roots in the market culture of the Nordic countries (Sweden, Denmark, Norway, Iceland), stemming from the tradition of snuff (snus). In the past two years, this product category has been expanding to surrounding regions, with new brands and white label factories emerging at an accelerated pace in the Baltic states (Estonia, Latvia, Lithuania) and some Eastern European countries.

Most of the brands at this exhibition are showcasing their own brands while also actively promoting their company's OEM/ODM solutions, with no attempt to conceal it in their external publicity.

However, there is a significant concern within the industry that many brands are focused only on creating brand image without owning actual factories. This lack of control over the manufacturing process could result in poor product quality. Many small entrepreneurs rely on contract manufacturers to produce their products, but without control over production, quality, and distribution channels, they are quickly phased out of the market.

Joakim Soderling, the export manager of the Swedish nicotine pouch brand Helwit, believes that the market has become increasingly saturated in recent years. He stated, "What was once seen as a 'blue ocean' territory has now attracted numerous competitors, many of whom are just chasing short-term profits." 

On the other hand, international tobacco companies such as Altria and British American Tobacco are also launching their own brands of nicotine pouches. At a recent event, Altria not only showcased its ON! PLUS product, but also another nicotine pouch brand called FUMi. British American Tobacco, on the other hand, showcased its nicotine pouch brand VELO.

The entry of traditional tobacco giants into the market for nicotine products that are consumed orally means that competition is not only between "new start-ups and white labels," but also between "new start-ups and industry giants." Especially under the double pressure of industry giants entering the market and increasing regulation, the prospects of these new start-up brands are still worth observing.

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