Despite a challenging environment defined by economic recession and store closures, tobacco free oral nicotine in the form of nicotine pouches, was able to record impressive growth rates in 2020. As one of the fastest growing tobacco categories due to its novelty and emergence in 2019, nicotine pouches is becoming one of the most popular options for cigarette smokers looking to reduce their habit or change completely to perceived reduced risk products.
2020 saw widespread discounting of nicotine pouches as manufacturers worked to expand the category and gain consumer visibility. As a result, the average unit price significantly dropped in 2020 and is likely to remain stable for most of 2021, with growth expected to return from 2022.
Demand for nicotine pouches continued in 2020 after its entry the previous year, despite the pandemic which slowed sales for other non-combustible categories such as non cig-a-like closed systems. This resilience is due partially to the format’s suitability to e-commerce.
Nicotine pouches is predicted to continue to experience strong growth over the forecast period despite further competition from other alternative categories such as smokeless tobacco and e-vapour products, in addition to growing concerns over marketing practices. As flavour options for other categories continue to shrink and altogether disappear, nicotine pouches may continue to offer flavours although some jurisdictions are starting to include nicotine pouches in their flavour ban laws.
Nicotine pouches has the potential to rival smokeless tobacco in the US as consumers become increasingly aware of the category. Its most important advantage is its perception as being safer than traditional smokeless tobacco.
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Understand the latest market trends and future growth opportunities for the Tobacco Free Oral Nicotine industry in USA with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Tobacco Free Oral Nicotine research and analysis database.
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