Nicotine pouches, also known as nicotine gum, are cigarette replacements that help people quit smoking. These tea bag-like pouches, placed under the upper lip for about 15 to 30 minutes, deliver optimal doses of nicotine and offer smoke-free, odor-free and no spitting. The products are more effective than e-cigarettes, with data from European countries showing that nicotine pouches have a 60-75 percent success rate in getting people to quit smoking.
Nicotine replacement therapy uses low-dose medicinal nicotine to replace the nicotine in tobacco, and is effective in helping smokers wean themselves off cigarettes and reduce withdrawal symptoms in a gradual reduction. Slowly, smoking addiction gradually reduced until disappeared, so that smokers easily achieve the goal of removing addiction. Among the smoking cessation AIDS recommended by the World Health Organization, nicotine replacement therapy products (such as nicotine gum, nicotine patch, etc.) are recommended as first-line drugs.
Nicotine pouches usually contain food-grade fillers, water, salt, flavor and nicotine. Each packaged brand has different nicotine content. Nicotine pouches have not only mint and coffee flavors, but also various fruit flavors such as black cherry and citrus. Among them, mint-flavored products have become the most popular type because of their fresh smell and the ability of making people happy. In 2020, minty nicotine pouches accounted for 36.36% of the industry market share; Fruit-flavored products ranked second with 33.15%; The coffee-flavored products occupy only 9.23% of the market share due to their bitter taste.
Currently,
the sales method of nicotine pouches is mainly through offline. In 2015, offline
sales accounted for 89.36% of the market, while online sales were only 10.64%. However,
with the continuous popularity of online shopping in recent years, the
proportion of online sales in the market is constantly increasing, and by 2020,
it has increased to 17.05%. However, due
to regulations on specific products, online sales of nicotine bags are expected
to decline slightly in the next 2-3 years.
Europe
is the biggest market by revenue in this industry. In 2015, Europe led the industry
with a market share of 58.41%, followed by North America with 38.09%, while
Asia Pacific, South America, the Middle East and Africa had minimal market share
of less than 5%. However, based on our research and data analysis, we predict
that the Market share of The European market in the global nicotine pouch
industry will continue to decline during the forecast year, while the share of
other regions will increase. North America, in particular, is expected to be
the fastest-growing market in the industry, with its market share expected to
grow to 47.31% by 2025.
From the market share of industry leaders, the global nicotine pouch industry has a high degree of market concentration. In 2020, Swedish Match, British American Tobacco and Drylt ranked top 3 in the industry with 35.49%, 16.13% and 15.90% market share respectively. Swedish Match is a company based in Stockholm, Sweden, with subsidiaries in the United States. The company makes snuff and nicotine pouches, and ZYN is a sub-brand of the nicotine pouches it sells. British American Tobacco is a British multinational Tobacco company headquartered in London, United Kingdom, founded in 1902. It is one of the world\'s top five tobacco companies, and VELO is its brand of nicotine pouches. Dryft was founded by Kretek International and mainly engaged in the sales of nicotine bags, including mint, fruit and cinnamon nicotine pouches.
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According
to our research, the total market value of the global nicotine bag industry was
$21.78 million in 2015, and the industry has grown rapidly in recent years to
reach $677.01 in 2020. Based on this data, we carry out a series of functional
calculations and deduce the data of the next five years with a scientific
model. Finally, we can predict that by 2025, the total market value of the
global nicotine bag industry will reach $7062.10 million. During the forecast
period, market demand will continue to improve, and the industry will develop
very rapidly.
Nicotine Pouches Are Smoke-free Products and Will Be a Powerful
Alternative to E-cigarettes in the Future
For
years, flammable cigarettes have been smokers\' choice. Traditional smoking
causes second-hand smoke, limited use and yellow teeth. Second-hand smoke harms the health of family
and friends, occasionally causes family conflicts, and has an impact on society;
Yellowing teeth can affect a smoker\'s appearance and lead to an aversion to the
cleaning process. Above all, smoking will do great harm to one\'s health. People
are aware of the disadvantages of smoking, but it is not easy to give up
smoking, so they hope that products that can allow smokers to enjoy nicotine
without side effects will be released. The nicotine pouch happens to be a
smokeless form of nicotine that can be used anywhere without staining teeth,
and the same amount of nicotine can reduce the damage, rather than absorbing
material through the lungs like regular cigarettes or vapers.
Major
players in nicotine bags see them as a powerful alternative to e-cigarettes,
and their huge investment has become a powerful driver of the nicotine pouch
market. The nicotine pouch market was the fastest-growing segment of the
tobacco market last year, even as regulatory changes and lung disease outbreaks
plagued the e-cigarette market. Many companies have recognized the situation
and sought to expand the production and business of nicotine pouches. For
example, in 2019, Altria acquired Burger Sohne Holding Ag, taking over its
global operations, which effectively gave them an 80% profit in the nicotine pouch
business. In 2019, British American Tobacco reportedly spent $24.9 million
building a plant in Hungary to expand nicotine pouch production. These
companies are investing not only in production but also in marketing. If
appropriate marketing strategies are adopted to attract consumers\' attention,
the nicotine pouch market is expected to increase significantly.
However, nicotine pouches, like e-cigarettes, do not have a uniform regulatory regime, meaning smokeless products will be banned in some markets. As the public increasingly uses nicotine pouches instead of cigarettes, the government may regulate the nicotine pouch market as it does to tobacco. So far, for example, the FDA has banned the sale of tobacco products to people under 21, and nicotine pouches will most likely face the same regulation.
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