FEATURE
NICOTINE POUCHES
38 ASIAN TRADER 19 SEPTEMBER 2025
Different brands are taking varied
approaches to capture market
share and meet diverse consumer
preferences.
ZYN offers two distinct
formats to cater to different user
preferences. ZYN Mini Dry
features a unique recipe with
nicotine salts and dried flavour
powder designed to melt away,
delivering an even experience in a
small and comfortable pouch
format that provides a gradual
release of flavour and can be used
for around 30 minutes. Mean
while, ZYN Slim offers a balanced
nicotine experience in a slim and
comfortable pouch format.
In January this year, Zyn has
become the first authorised
nicotine pouch in the United
States, after the U.S. Food and
Drug Administration (FDA)
gave the brand market
ing authorisation.
The Scandinavian
Tobacco Group’s XQS
brand has been
particularly aggressive in
flavour innovation.
“Already this year we have
launched five new flavours,
meaning we currently have eight
different SKUs in the XQS
portfolio, and I can assure
retailers that we won’t be
stopping there,” says Jhingan.
“Our current best-seller is the
Tropical flavour, which was one of
the original three to launch, while
other particularly popular ones to
call out at the moment would be
Black Cherry and Strawberry
Kiwi.”
Innovation extends beyond
traditional nicotine delivery.
Iceberg has recently launched
capsule pouches that incorporate
flavour capsules within each
pouch, giving users the versatility
of two flavours in one product.
The brand has also ventured into
the energy drink
alternatives market
with nicotine- and
tobacco-free energy
pouches that provide
a caffeine boost
without traditional
beverages.
“Iceberg have just
launched a new, improved
formula that has enhanced the
feel and strength of the pouches
without compromising on our
great flavours. The new pouches
give an instant nicotine release,
which promotes a stronger
nicotine experience whilst
maintaining compliance with
industry guidelines,” explains
Madeley.
Flavour trends
The research conducted by King’s
College London in collaboration
with Action on Smoking
and Health (ASH) provides
valuable insights into who
is embracing nicotine
pouches. Usage is notably
higher among young
adults aged 18-34,
predominantly male
consumers, and individu
als living in London. The
study also found that most
users had prior experience
with nicotine, particularly
through smoking or
vaping.
This demographic
profile presents retailers
with a clear target market
– young, urban profession
als seeking a more discreet
should maintain a balanced
offering across strength catego
ries to cater to diverse consumer
needs.
The trend towards stronger
products is particularly notable in
the UK market. “Currently in the
UK the trend is for stronger
products, with Iceberg being the
strongest on the market whilst
remaining fully compliant. Our
new innovative formula hits the
spot for UK consumers,” notes
Madeley.
All of the XQS SKUs come in
strengths of either 8mg or 11.2mg,
apart from their best-selling
Tropical flavour which also comes
in 4mg.
This evolution in consumer
taste mirrors the development of
the vape market in its early years.
“In the next year, we can expect
consumer tastes to carry on
maturing, with more complex
flavours and diversity of brand
preference, similar to how the
vape market evolved in its early
years,” McGeough predicts.
Retail strategy
For retailers looking to capitalise
on this growing category, experts
recommend a multi-faceted
approach that goes beyond simply
stocking products. The key lies in
understanding the diverse range
of customer preferences and
ensuring adequate variety in both
strengths and flavours.
“Retailers should ensure they
offer a variety of strengths and
flavours to meet the diverse needs
and preferences of legal-aged
nicotine users. Additionally, they
should understand the different
formats of nicotine
pouches that their
customers may look
for,” advises Matot.
The importance of
proper product
placement cannot be
overstated. “The display of
next-gen products like pouches
is also really important, which is
why to really maximise sales of
XQS, we know it is best suited in
multiple locations due to it being
a new product in the category that
consumers may not be aware of,”
explains Jhingan.
Many suppliers offer compre
hensive display solutions to
accommodate different store
sizes, all designed to ensure
and convenient alternative to
traditional tobacco products or
vaping. The appeal lies in the
product’s invisible nature,
making it suitable for any
environment without interrupt
ing social norms or workplace
restrictions.
Understanding flavour
preferences is crucial for retailers
looking to optimise their nicotine
pouch range. While mint remains
the predominant flavour in the
category, fruity flavours are
proving increasingly popular with
consumers.
Steve McGeough, General
Manager at RV Karma, makers of
Übbs Pouches, observes: “Cus
tomers are becoming more
curious about flavour selection
and want to have a good variety of
different products to try before
landing on a favourite. It’s
important for retailers to have a
wide range, because flavours and
even nicotine delivery varies a lot
between brands.”
The market shows interesting
segmentation by nicotine
strength, with Extra Strong
variants (more than 8 mg/
pouch) capturing 33.41
per cent of revenue
share in 2024,
according to Grand
View Research. This
strength category
appeals particularly to
experienced nicotine users and
former heavy smokers seeking an
intense alternative to cigarettes.
However, Light strength
pouches (2mg/pouch) are
expected to show the fastest
growth at a CAGR of 11 per cent
from 2025 to 2030, driven by new
users and those aiming to reduce
their nicotine dependence. This
bifurcation suggests retailers