BREAKING: China Brings Nicotine Pouches Under Tobacco Monopoly Regulation, Signaling Major Shift for Oral Products

Jan.09
BREAKING: China Brings Nicotine Pouches Under Tobacco Monopoly Regulation, Signaling Major Shift for Oral Products
China has for the first time issued clear regulatory rules for nicotine pouches and other oral nicotine products, formally classifying them under the tobacco monopoly alongside cigarettes and tobacco, ending a long-standing legal grey zone and laying the regulatory groundwork for their potential domestic launch.

Key Points

  • China has issued its first explicit regulatory framework for nicotine pouches and other oral nicotine products.
  • Oral nicotine products will be regulated as cigarettes or cut tobacco, not as e-cigarettes.
  • Private manufacturers and brands of oral nicotine products will no longer have a viable path to operate in China’s domestic market.
  • The regulatory clarification lays the institutional foundation for China Tobacco to introduce oral nicotine products domestically.


2Firsts, Jan. 9, 2026, Shenzhen — China’s top tobacco regulator on Friday issued its first explicit regulatory framework for oral nicotine products, formally bringing nicotine pouches and other smokeless tobacco items under the country’s tobacco monopoly system.

 

The announcement, issued by the State Tobacco Monopoly Administration (STMA), was dated Jan. 6 and released publicly on Jan. 9, taking effect immediately. It marks the first time China has clearly defined the regulatory status of oral nicotine products, which had previously operated in a legal grey area.

 

The move represents a significant clarification in China’s regulation of nicotine products and carries implications for both domestic and international markets.

 

BREAKING: China Brings Nicotine Pouches Under Tobacco Monopoly Regulation, Signaling Major Shift for Oral Products

 

Screenshot of an announcement issued by China’s State Tobacco Monopoly Administration on strengthening regulation of smokeless tobacco products.

 

 

First clear definition of oral nicotine products

 

 

Under the announcement, “smokeless tobacco products” are defined as products containing nicotine that are consumed orally, nasally or through external use without producing smoke. The definition explicitly includes nicotine pouches, oral strips and patches, snus, chewing tobacco and snuff.

 

This is the first time Chinese regulators have publicly and systematically defined oral nicotine products as a distinct category within the tobacco regulatory framework.

 

 

Regulated as cigarettes, not e-cigarettes

 

 

The most consequential provision in the announcement concerns regulatory classification. According to the STMA, smokeless tobacco products will be regulated as either cigarettes or cut tobacco, rather than under China’s e-cigarette regulatory framework.

 

This means oral nicotine products will be governed under China’s traditional tobacco control system. Under existing rules, cigarettes and cut tobacco are subject to strict monopoly management, with production, branding and distribution concentrated within the state-run tobacco system.

 

 

Restricted industrial policy to curb capacity and investment

 

 

The announcement also states that smokeless tobacco products will be subject to China’s “restricted” industrial policy classification.

 

In practice, this means that the construction of production facilities, capacity expansion and related investment in oral nicotine products will be tightly controlled and subject to regulatory approval. Oversight will extend beyond product circulation to manufacturing capacity and capital entry.

 

 

Private oral nicotine manufacturers may face exit from domestic market

 

 

With product definition, regulatory classification and industrial policy aligned, oral nicotine products have now been fully incorporated into China’s existing tobacco regulatory and production framework.

 

Under China’s current system, cigarettes and cut tobacco operate under a highly centralized monopoly, with production, branding and distribution dominated by the state tobacco system. By being regulated “as cigarettes or cut tobacco,” oral nicotine products will follow the same institutional logic.

 

As a result, manufacturing and branding models led by private companies may become difficult to sustain in China’s domestic market. As oral nicotine products are fully absorbed into the tobacco monopoly framework, production licensing, capacity allocation and market access conditions are expected to change, potentially reshaping the competitive landscape.

 

Alan Zhao, co-founder of 2Firsts, said the regulatory approach mirrors China’s earlier experience in the e-cigarette sector.

 

Before China’s e-cigarette regulations took effect in 2022, herbal heated non-combustible products existed in a regulatory grey area, giving rise to a number of domestic manufacturers and brands, Zhao said. Once regulators classified herbal tobacco cartridges as tobacco products and brought them under the tobacco monopoly system, all domestic manufacturers producing such products were cleared from the market, leading to a complete exit of the category.

 

From a regulatory logic perspective, Zhao said, the formal classification of oral nicotine products could have a similar structural impact on existing market participants.

 

 

China enters period of intensified tobacco and novel product regulation

 

 

The announcement comes amid a series of regulatory actions since December, as China enters a period of intensified oversight of tobacco and novel nicotine products.

 

On Dec. 5, 2025, China’s State Council held an executive meeting calling for a full-chain crackdown on tobacco-related illegal activities. This was followed by an opinion issued by the General Office of the State Council instructing tobacco regulators to closely track emerging tobacco products and clarify their regulatory classification.

 

Against this backdrop, the STMA in late December tightened controls on e-cigarette production capacity and investment and published regulatory status updates aimed at increasing transparency. On Jan. 5, 2026, the regulator released draft rules proposing a credit-based regulatory system for e-cigarette enterprises, signaling a shift from campaign-style enforcement toward institutionalized governance.

 

The Jan. 9 announcement on smokeless tobacco products is seen as part of this broader regulatory sequence.

 

 

Industry signals preceded regulatory clarification

 

 

Before the regulatory framework was formally clarified, signals of China Tobacco’s involvement in the nicotine pouch sector had already emerged earlier this year.

 

2Firsts previously reported that companies within China’s state tobacco system had accelerated preparations related to nicotine pouch equipment and technology, indicating sustained attention to the product category.

 

In November 2025, 2Firsts also observed nicotine pouch products produced by China Tobacco for export at a tobacco trade exhibition in Dubai. According to information obtained by 2Firsts, related products have recently entered overseas markets, although no official plans for domestic sales in mainland China have been announced.

 

BREAKING: China Brings Nicotine Pouches Under Tobacco Monopoly Regulation, Signaling Major Shift for Oral Products

 

Samples of oral nicotine products exhibited by Yunnan Industrial Co., Ltd. (Yunnan IC), a subsidiary of China National Tobacco Corporation, at the Dubai tobacco exhibition in November 2025. The “ASHIMA” trademark is a well-known cigarette brand under Yunnan IC. Photo: 2Firsts.

 

With nicotine pouches now formally incorporated into the tobacco monopoly system, whether the regulatory framework will further facilitate the institutional rollout of such products in China’s domestic market remains a key policy development to watch.

 

For the latest updates on China’s nicotine market, continue to follow 2Firsts’ reporting.

 


Related read:

2FIRSTS | China’s Tobacco Regulator Moves to Introduce Credit Management Framework for E-Cigarette Manufacturers, Greater Transparency May Improve International Assessability of China’s Supply Chain
2FIRSTS | China’s Tobacco Regulator Moves to Introduce Credit Management Framework for E-Cigarette Manufacturers, Greater Transparency May Improve International Assessability of China’s Supply Chain
China’s tobacco regulator has moved to introduce a credit management framework for e-cigarette manufacturers, outlining a system that links compliance records to regulatory oversight. The proposal forms part of a broader push to institutionalize supervision and improve transparency across China’s e-cigarette supply chain.
www.2firsts.com

2FIRSTS | Exclusive | China Releases E-Cigarette Regulatory “Status Report”, First Comprehensive Disclosure of Oversight Framework and International Cooperation
2FIRSTS | Exclusive | China Releases E-Cigarette Regulatory “Status Report”, First Comprehensive Disclosure of Oversight Framework and International Cooperation
As 2025 draws to a close, China’s State Tobacco Monopoly Administration has released a white paper–style “Status Report” on e-cigarette regulation, systematically outlining its oversight framework, enforcement outcomes and international cooperation. 2Firsts provides exclusive in-depth reporting and analysis, offering insight into China’s regulatory logic and governance direction.
www.2firsts.com

2FIRSTS | China Further Tightens E-Cigarette Capacity and Investment Controls, Supply Chain Faces Stronger Regulation and Accelerated Shakeout
2FIRSTS | China Further Tightens E-Cigarette Capacity and Investment Controls, Supply Chain Faces Stronger Regulation and Accelerated Shakeout
China is tightening controls over e-cigarette production capacity and investment as regulators move to curb disorderly competition and address oversupply risks, a new policy framework released on December 25 shows, signaling stronger oversight and a faster shakeout across the country’s e-cigarette supply chain, according to first-hand reporting by 2Firsts.
www.2firsts.com

2FIRSTS | Alan Zhao: China’s High-Level Crackdown on Illicit Tobacco and Vaping Will Reshape the Global Market
2FIRSTS | Alan Zhao: China’s High-Level Crackdown on Illicit Tobacco and Vaping Will Reshape the Global Market
Alan Zhao wrote an article interpreting China's highest-level law enforcement action against illegal tobacco and e-cigarettes. He believes that this is not only an upgrade of domestic governance but will also have a profound impact on the global new tobacco supply chain and market pattern.
www.2firsts.com

JAMA Issues First U.S. Clinical Guidance on Vaping for Smoking Cessation, Urging Complete Switch From Cigarettes
JAMA Issues First U.S. Clinical Guidance on Vaping for Smoking Cessation, Urging Complete Switch From Cigarettes
JAMA has published a Special Communication offering systematic recommendations for U.S.-based clinicians on the use of nicotine e-cigarettes in adult smoking cessation. Developed by the Harm Reduction Workgroup of the Society for Research on Nicotine and Tobacco’s Treatment Research Network, the paper recommends including e-cigarettes alongside FDA-approved cessation medications in risk-benefit discussions. It cites high-certainty evidence that nicotine e-cigarettes achieve higher quit rates than nicotine replacement therapy and evidence suggesting efficacy comparable to highly effective medications such as varenicline and cytisine. For adults who choose vaping to quit, the authors recommend FDA-authorized products, sufficient nicotine delivery and a rapid, complete transition away from cigarettes rather than prolonged dual use.
Aug.13
PMI Q2 Revenue Rises 10.4% as IQOS and VEEV Expand, U.S. ZYN Growth Slows
PMI Q2 Revenue Rises 10.4% as IQOS and VEEV Expand, U.S. ZYN Growth Slows
Philip Morris International’s second-quarter net revenues rose 10.4% to a record $11.19 billion, as heated tobacco and e-vapor expanded across international markets. IQOS remained the main smoke-free growth engine, while VEEV shipments jumped 55.1%. In the United States, however, ZYN shipments increased just 1.8% and consumer offtake was broadly flat to slightly higher. Cigarette volumes also rose, showing that PMI’s transformation is advancing, but growth is becoming increasingly uneven across categories and markets.
PMI
Jul.22
Philippine Local Governments Urge Marcos to Prioritize Smoke- and Vape-Free Bill
Philippine Local Governments Urge Marcos to Prioritize Smoke- and Vape-Free Bill
The League of Municipalities of the Philippines (LMP) has urged President Ferdinand Marcos Jr. to prioritize the Smoke- and Vape-Free Bill, seeking a nationwide legal framework for tobacco and vape regulation. Local government leaders said national legislation would help standardize enforcement and strengthen public health measures. The proposal remains at the advocacy stage and has not yet become law.
Jul.29
Philippines Weighs Unified Vape Tax as Lawmakers Back Risk-Based Rates and Government Seeks to Fill ₱66 Billion Revenue Gap
Philippines Weighs Unified Vape Tax as Lawmakers Back Risk-Based Rates and Government Seeks to Fill ₱66 Billion Revenue Gap
Philippine lawmakers are considering an overhaul of the country's vape excise-tax regime to eliminate the wide gap between taxes on nicotine salt and freebase nicotine liquids and reduce incentives for misdeclaration. House Bill 5364, filed by Rep. Rufus Rodriguez and Rep. Maximo Rodriguez Jr., would impose a unified ₱10-per-milliliter tax on vapor products, with 5% annual increases beginning in 2027. Rodriguez says the proposal could generate an average ₱6 billion in annual collections from 2027 through 2030. The debate comes as the Philippine government considers tobacco, vape and other health-tax reforms to help offset around ₱66 billion in revenue expected to be forgone under a proposed tax-relief package.
Aug.18
China’s Jinhua Tobacco Launches CNY 2.7 Million Procurement for E-Cigarette Violation Lead Monitoring Services
China’s Jinhua Tobacco Launches CNY 2.7 Million Procurement for E-Cigarette Violation Lead Monitoring Services
Jinhua Tobacco, a municipal tobacco company in China’s Zhejiang province, has launched a public tender for e-cigarette-related violation lead monitoring and consulting services. The project is valued at CNY 2.7 million and covers data resource integration and analytical consulting services for 36 months from contract signing. The procurement reflects the use of external data and analysis services to support local tobacco companies’ market oversight activities related to e-cigarettes.
Aug.07
Virginia Tightens Vape and Tobacco Retail Enforcement, With Fines Up to $15,000 Per Unlisted Product
Virginia Tightens Vape and Tobacco Retail Enforcement, With Fines Up to $15,000 Per Unlisted Product
A new Virginia law that took effect on July 1, 2026, requires retailers to obtain permits to sell liquid nicotine, vape and tobacco products, while directing Virginia ABC to conduct inspections and verify that stores sell only products listed in the state directory.
Jul.20