Nicotine Pouches Become New Favorite in U.S. Market, Who is Leading the Attention?

After disposable e-cigarettes became a hit in the nicotine industry, nicotine pouches or oral tobacco products have captured the attention of many people this year, igniting a consumer trend in the largest e-cigarette market in the world, the United States.

Industry research firm Global Market Insights Inc released a senior report in March of this year, stating that the market size of the nicotine pouch market in 2023 is approximately $6.6 billion. The compound annual growth rate is expected to be around 17.5% by the base year of 2024 and is forecasted to reach a value of $27.4 billion by 2032.

Philip Morris International's (PMI) ZYN product, under its brand, has seen a continuous increase in sales in the United States. Facing market shortages, the brand ON!, under the Ochies Group, is accelerating its expansion and applying for PMTAs for multiple flavors of its products. Other international tobacco companies are also conducting product strategies in the American market. However, which nicotine pouch brands are the most popular in the United States, and which regions have the highest level of interest in nicotine pouches? What kind of nicotine pouches are the most popular in the American market?

Key Player's Drive for Attention

Using the popularity index of Google Trends, 2FIRSTS conducted a deep analysis of the search situation for nicotine pouches from January 1, 2024, to present, to present the current preferences and trends of nicotine pouches in the American market.

It is important to note that the Google Trends popularity is a relative value, ranging from 0 to 100. A value of 100 indicates that a certain keyword has the highest search volume within a specified time period, while a value of 50 means that the search volume for that keyword is half of its peak.

According to the trending data, on January 25, there was a peak in American public interest in nicotine pouches, reaching the highest level so far this year, followed by a downward trend.

The individual who has pushed nicotine pouches to their highest profile is not a popular brand's nicotine pouch product, but rather a key figure. 2FIRSTS previously reported that on January 24, Senate Majority Leader Charles Schumer called on the federal government to take action against a product called "ZYN," owned by Philip Morris International (PMI).

Schumer said that nicotine pouches are dangerous for teenagers because they use them as alternatives to e-cigarettes, and urged the Federal Trade Commission and the US FDA to investigate marketing and health impact issues surrounding ZYN.

Chuck Schumer has served as a United States Senator from New York since 1999, and became the Majority Leader of the Senate in 2021. As the Majority Leader of the Senate, he has the power to decide which bills and issues will be brought to the full Senate for discussion and voting, prioritizing his party's policy goals and important legislation. He takes a firm stance on strict regulation of e-cigarettes, particularly focusing on their impact on youth. He supports the SAFE Kids Act, which aims to ban e-cigarette flavors targeted towards teenagers.

At the same time, Schumer is also one of the leading advocates for the legalization of marijuana. He has put forward the Marijuana Freedom and Opportunity Act, aimed at decriminalizing marijuana at the federal level and allowing states to establish their own regulations on the drug.

Large Tobacco Company Took the First Step

In terms of search popularity for nicotine pouch brands, the top five are ZYN, On!, Rogue, VELO, and Zone X.

• ZYN: Manufactured by Swedish Match, a subsidiary of Philip Morris International (PMI), ZYN is the most popular nicotine pouch brand in the American market. The product offers up to 10 different flavors, with options of 3mg and 6mg. 
• On!: A subsidiary of Altria, Helix Innovations sells On! in the United States. They offer 7 flavors and 5 nicotine strengths (ranging from 1.5mg to 8mg) in each can containing 20 nicotine pouches. 
• Rogue: A domestic American brand, Rogue offers 11 flavors and two nicotine strengths (3mg and 6mg) in each can containing 20 nicotine pouches, with packaging size almost double that of other brands. 
• VELO: British American Tobacco acquired EPOK and rebranded it as VELO in 2018 to cater to the American market. VELO offers 10 flavors and three nicotine strengths (2mg, 4mg, and 7mg). 
• Zone X: Produced by Skruf Snus AB, a subsidiary of the Imperial Brands, Zone X quickly gained popularity and a user base in the market since its launch in 2021.

It can be seen that among the top five most popular brands, four are owned by large tobacco companies. Particularly, the ZYN brand, currently owned by Philip Morris International (PMI), first entered the U.S. market in 2014 and achieved tremendous success. Other major tobacco and nicotine companies have also entered the nicotine pouch market after seeing the success of ZYN. It is worth noting that Japan Tobacco International (JTI) also has the nicotine pouch brand Nordic Spirit, primarily sold in Europe, and is planning to expand into the U.S. market.

Nicotine Pouches, the Bigger the Better

Rogue, ranked third in popularity, reflects the preferences of American consumers when it comes to product design.

The standout feature of Rogue is that their nicotine pouches are larger in size compared to other brands, providing users with a longer-lasting experience.

Just like the oversized disposable e-cigarettes in the American market, there is a constant pursuit for breakthroughs in terms of usability. Some disposable e-cigarette brands have adopted the "bigger is better" argument as their slogan.

Time magazine columnist Megan Gibson has also analyzed the consumer mentality of "bigger is better.

Megan Gibson analyzes:

Part of the reason is our country's history and the idea that we have such vast space to expand...but because our country no longer has that kind of space for exploration or expansion, we can only assert our sovereignty in this way. We have coined the phrase "go big or go home."

As consumerist culture began to prevail in the 20th century, with the development of the economy and the increase in purchasing power, American consumers gradually developed a preference for larger, higher-value products. This cultural phenomenon is also evident to varying degrees on a global scale, but is particularly pronounced in the United States.

There is a trend towards disposable e-cigarettes and nicotine pouches in consumer products.

Smokers Show Higher Interest in Nicotine Pouches

In terms of regional ranking, the top five states are not currently where the new type of tobacco is most "popular," such as Florida, California, and New York.

However, Wyoming, North Dakota, Alaska, Montana, and Idaho are the states that have caught the attention of 2FIRSTS. These states share common characteristics and unique needs that have fueled interest in nicotine pouches.

The smoking rate in these states is generally higher than the national average, prompting many residents to seek out healthy alternatives.

For example, Wyoming has the highest acceptance rate of nicotine pouches in the country. As early as 2010, Associated Press reporter Mike Stobbe pointed out that Wyoming had the highest rate of smokeless tobacco products (including chewing tobacco, nicotine pouches, etc.) usage in the country, with nearly one-sixth of adult males using smokeless tobacco products. A 2020 survey showed that 8.9% of adults in Wyoming use smokeless tobacco products.

Furthermore, many residents of these states live in rural or remote areas and often engage in outdoor activities such as hunting, fishing, and farming. The flammable nature of cigarette butts poses a significant threat to farms and grasslands in these areas.

Taking Wyoming as an example, the state is home to attractions such as Yellowstone National Park and Grand Teton National Park, which attract a large number of tourists year-round and have become important pillars of the state's economy. Nicotine pouches and other oral tobacco products, which are convenient to carry and use, are particularly suitable for these occasions.

Finally, major brands like ZYN and On! are actively marketing in these states, making nicotine pouches more easily accepted and purchased by local consumers. The relatively lenient smoking regulations have also created favorable conditions for the popularization of nicotine pouches.

The Confrontation is Ongoing

In addition to its presence on the internet, ZYN is also one of the most talked-about topics.

In May, the FDA issued over 100 warning letters and 40 fines to retailers selling ZYN to underage users.

On June 17, Philip Morris International (PMI) announced that it would temporarily suspend online sales on the ZYN.com website run by Swedish Match North America across the United States in response to a subpoena from Washington D.C. This came after the Attorney General of Washington D.C. requested compliance with a law banning all flavored tobacco sales in the district by 2022.

The recent shortage of ZYN products in the United States, caused by huge market demand and court injunctions, has sparked dissatisfaction among many nicotine pouch consumers. A spokesperson for Philip Morris International acknowledged in a statement that ZYN is experiencing a "short-term supply constraint, with no regulatory or production issues affecting distribution." He also mentioned that PMI plans to build a new ZYN production plant in 2025.

Since Philip Morris International acquired ZYN manufacturer Swedish Match for $16 billion, ZYN's shipments have soared 80% year-on-year, reaching 131.6 million cans.

Meanwhile, major U.S. tobacco company Altria announced that it has submitted premarket tobacco product applications (PMTA) for its on! PLUS oral nicotine pouch products to the U.S. Food and Drug Administration (FDA). These applications were submitted by Altria's wholly-owned subsidiary, Helix. The three products come in tobacco, mint, and wintergreen flavors, each with three different nicotine strength options.

Regarding the booming U.S. nicotine pouch market, Yolanda Richardson, President and CEO of the Campaign for Tobacco-Free Kids, stated that over the past year or so, ZYN has become increasingly popular among teenagers and even younger children, similar to e-cigarettes. However, because they are smokeless, schools cannot detect them with smoke detectors.

"We are very concerned about yet another product on the market that helps create a future market of nicotine addicts, which is a short- to mid-term consequence. But for young people, the most immediate consequence is that nicotine is harmful to them."

Nicotine pouches may have to navigate the same pitfalls that e-cigarettes did.