Nicotine Pouches Lead U.S. Tobacco Growth as Vape Sales Decline

Business
Jun.05
Nicotine Pouches Lead U.S. Tobacco Growth as Vape Sales Decline
New convenience store industry data show nicotine pouches have become the primary growth driver in the tobacco category, with oral nicotine sales rising nearly 30% over the past year while vape sales declined.

Key Points

  • Nicotine pouch sales up 29.5%;
  • Smokeless sales rise 13.1%;
  • Vape unit sales down 14%;
  • Cigarette sales still exceed US$50bn.

2Firsts

June 5, 2026 

The U.S. tobacco market is rapidly shifting toward smoke-free products, with nicotine pouches emerging as the fastest-growing segment in the convenience store channel. According to Circana data for the 52 weeks ending March 22, 2026, smokeless tobacco sales increased 13.1% to US$13 billion, while unit sales rose 11.3% to 1.84 billion units.

The strongest performance came from spitless tobacco products, including nicotine pouches. Dollar sales reached US$6.89 billion, up 29.5% year over year, while unit sales climbed 29.2% to 1.1 billion units. The segment’s share of the smokeless category increased by 6.73 percentage points to 52.9%, making it the largest smokeless tobacco segment.

By comparison, traditional snuff generated US$5.99 billion in sales, down 0.8%, while unit sales declined 8%. Its category share fell by 6.44 percentage points to 45.98%. Chewing tobacco sales fell 9.7%, with unit sales declining 7.5%.

The vape category showed signs of slowing. Electronic smoking device sales totaled US$6.26 billion, down 6.4%, while unit sales fell 14% to 314 million units. Vaping product sales declined 7.5%, and unit sales dropped 14.7%. However, vape accessories remained a bright spot, with dollar sales rising 28.9% to US$250 million.

Despite declining volumes, cigarettes remained the largest tobacco category, generating US$50.7 billion in sales. Revenue slipped just 0.6%, although unit sales fell 5.9%, suggesting pricing continues to support category value.

Alison Ritchie, president of the New York Association for Convenience Stores (NYACS), said nicotine pouches remain on track for another year of double-digit volume growth.

Retailers across multiple states reported similar trends. Duchess Convenience Stores said consumers are increasingly shifting from traditional cigarettes toward modern oral nicotine products, while Weigel’s reported continued double-digit growth in nicotine pouches alongside declining vape sales.

Regulation continues to shape the market. Only 45 vape products are currently authorized for sale in the United States. Recently, the FDA authorized the first non-tobacco, non-menthol flavored vape pods from Glas, including mango and blueberry varieties, combined with age-gating technology designed to reduce youth access.

At the same time, illicit vape products remain a major concern for retailers and regulators. New York State is considering directory-style legislation aimed at improving enforcement against unauthorized products. Industry groups warn that poorly designed policies could hinder growth in both the vape and nicotine pouch categories.

The latest data indicate a clear shift in the U.S. tobacco landscape. Cigarette volumes continue to decline, vape growth has stalled, and modern oral nicotine products are increasingly becoming the primary engine of category growth. For retailers, optimizing assortments and shelf space while maintaining regulatory compliance will be critical to tobacco category performance in 2026 and beyond.


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Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

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