Key Points
- NielsenIQ data show smokeless grew over 8%.
- Cigarettes still account for nearly 70% of sales.
- Grand View sees pouch CAGR near 25%.
- FDA has authorized ZYN and on! PLUS products.
2Firsts
June 23, 2026
According to C-Store Dive, as cigarette use and sales continue to decline in the United States, smokeless nicotine products are gaining more attention in the convenience-store channel, with nicotine pouches becoming one of the fastest-growing and most closely watched segments.
Smokeless Products Keep Growing
The report said the smokeless category includes products such as chewing tobacco, snuff, snus and nicotine pouches. Nicotine pouches have become a particular focus for the convenience-store industry. According to Grand View Research, U.S. nicotine pouch sales are expected to grow at a compound annual growth rate of nearly 25% through 2033.
However, smokeless products are still not the largest part of the U.S. nicotine business. NielsenIQ and Goldman Sachs data showed that in the 52 weeks ended May 30, U.S. cigarette sales fell 2.4% year over year, but cigarettes still accounted for nearly 70% of total nicotine category sales.
Smokeless nicotine products were the second-largest segment of the nicotine category. C-Store Dive said smokeless products were also the only major nicotine category to record growth over the past year, with full-year sales up more than 8%. By comparison, cigar sales fell about 1%, cigarette sales declined by more than 2%, and vape sales recorded a double-digit reduction.
The shift shows that the nicotine backbar in convenience stores is changing. Cigarettes remain dominant, but growth momentum is moving gradually from combustible tobacco toward smokeless products, especially modern oral nicotine products.
Three Companies Lead the Market
C-Store Dive reported that Altria Group, British American Tobacco and Swedish Match, a division of Philip Morris International, together account for more than 90% of the smokeless nicotine category.
Altria has a U.S. smokeless portfolio that includes traditional smokeless tobacco and modern oral products, including Copenhagen, Skoal and on!. British American Tobacco competes through traditional smokeless brands such as Grizzly and modern oral products. Swedish Match, now owned by Philip Morris International, has expanded rapidly in the U.S. market through ZYN nicotine pouches.
The report said Altria Group still leads in annual sales, but Swedish Match is catching up. ZYN has been available for longer, and the popularity of its nicotine pouches is reflected in year-over-year sales data. on! PLUS entered wider distribution only in March 2026, so the Goldman Sachs data did not list its year-over-year sales change.
For convenience stores, nicotine pouch growth means shelf allocation and category management are changing. As traditional cigarette sales decline, retailers need to rebalance display space and promotional resources across cigarettes, vapes, traditional smokeless tobacco and nicotine pouches.
FDA Authorizations Raise Compliance Focus
Regulatory attention on nicotine pouches is also increasing. In January 2025, the U.S. Food and Drug Administration (FDA) authorized the marketing of 20 ZYN nicotine pouch products through the premarket tobacco product application (PMTA) pathway. It was the first time the FDA had authorized products commonly referred to as nicotine pouches.
In December 2025, the FDA authorized six on! PLUS nicotine pouch products, including mint, wintergreen and tobacco flavors in 6 mg and 9 mg nicotine strengths. The applications were submitted by Altria’s Helix Innovations. The FDA said the authorizations were the first decisions under its nicotine pouch PMTA pilot program, which is intended to improve review efficiency while maintaining scientific standards.
FDA marketing authorization does not mean a product is “safe” or “FDA approved.” The agency generally says an authorization means a product meets the statutory “appropriate for the protection of public health” standard based on a specific application and regulatory conditions, while companies must still comply with marketing, age-restriction and post-market requirements.
For the U.S. convenience-store industry, the authorizations for ZYN and on! PLUS carry market signals. On one hand, nicotine pouches may offer adult tobacco or nicotine users a non-combustible alternative. On the other hand, regulators continue to scrutinize youth use, flavor appeal, marketing practices and labeling compliance.
From an industry perspective, the growth of smokeless nicotine products is reshaping competition in the U.S. nicotine market. Convenience stores still depend heavily on cigarettes for sales scale, but future category growth is more likely to come from modern oral products such as nicotine pouches. As more products move through PMTA review and authorization pathways, compliance status, brand concentration and channel execution will become key competitive factors in the smokeless nicotine market.
（Cover Image source: C-Store Dive）
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