FEATURE
NICOTINE POUCHES
19 SEPTEMBER 2025 ASIAN TRADER 37
he next-generation
nicotine market in the
UK is witnessing a
remarkable transformation as
nicotine pouches emerge as one
of the fastest-growing catego
ries. With the recent ban on
single-use vape products leaving
gaps in both revenue and shelf
space, savvy retailers are turning
their attention to this burgeoning
category that offers attractive
margins and unprecedented
growth potential.
Market performance
and growth
According to the latest data from
IRI Marketplace, total UK
nicotine pouch sales are now
worth just over £170 million
(excluding online sales) and are
growing by an impressive 68 per
cent year-on-year in volume
terms. Perhaps most significantly
for convenience retailers, this
channel is experiencing even
more dramatic growth than the
grocery sector.
“Although more sales take
place in the grocery channel, sales
of nicotine pouches are growing
much faster in the convenience
channel, where they are up by 88
per cent YOY in volume terms,
compared to 58 per cent YOY
volume growth in grocery,”
explains Prianka Jhingan, Head of
Marketing at Scandinavian
Tobacco Group UK.
This trend is being driven by
several key brands showing
exceptional performance. ZYN
nicotine pouches, positioned as
the world’s number one nicotine
pouch brand, saw a staggering 497
per cent increase in sales volume
between December 2023 and
December 2024. Meanwhile,
brands like XQS are making
significant inroads in the
convenience channel, where it
has already become the sixth
biggest-selling brand with
substantial potential for further
growth.
The growth isn’t confined to
the UK market alone. Andrew
Madeley, sales manager of Iceberg
nicotine pouches, recently told
Asian Trader that his brand has
achieved a dominant presence
across more than 40 countries in
Europe, Asia and Africa. “Nicotine
pouches are more than just a
trend, according to a UK
market analysis report
(ASH Scotland), and
between 2020 and
2024 the usage of
nicotine pouches had
doubled in the UK,” he
states.
Consumer appeal
The surge in popularity can be
attributed to several factors that
make nicotine pouches particu
larly attractive to modern
consumers. Unlike traditional
cigarettes or even vapes, nicotine
pouches offer a completely
smoke-free, discreet experience
that can be used virtually
anywhere.
“This is largely because, unlike
vapes, nicotine pouch users can
enjoy them on public transport, at
work, at sporting events, concerts
or anywhere they like,” Jhingan
explains.
This versatility has made them
popular not just among former
smokers, but also among what the
industry terms “poly-users” –
those using more than one
nicotine product. “Retailers
should view nicotine pouches as
fulfilling a diverse range of
customer preferences and not
limit their approach to a single
customer type,” Dor Matot, Head
of ZYN at Philip Morris
Limited, suggests.
The cost advantage is
equally compelling.
While the average price
of a pack of cigarettes
stands at £16.60, ZYN
nicotine pouches are
priced at £6.50 RRP, making
them a budget-friendly alterna
tive for legal-aged nicotine users.
Matot emphasises the broad
appeal: “Nicotine pouches are a
versatile, smoke-free alternative
suitable for any adult smoker or
legal-aged nicotine user. They are
ideal for any location or occasion
as they provide a cleaner, discreet
nicotine experience compared to
cigarettes.”
The demographic reach of
nicotine pouches extends into
unexpected territories. A report
published in May 2024 by
Loughborough University found
that one in five (20 per cent) of
professional footballers in
England are active users of
nicotine pouches, highlighting
their acceptance among health-
conscious consumers.
Innovation and variety
The nicotine pouch category is
characterised by continuous
innovation in both formulation
and flavour development.
The birth of a
giant-killing category
A new product with a
very long history, nicotine
pouches have shed the
‘tobacco-plug’ image of
cowboys and sailors to
emerge as the ‘clean nicotine’
option for Next Gen