Global Growth of Nicotine Pouches (2020–2025): Market Trends and Impacts

Nicotine pouches – small oral pouches containing nicotine (usually without tobacco) – have exploded in popularity worldwide in the early 2020s. Introduced in markets like the U.S. around 2016, these smokeless, spit-free products saw exponential growth from 2020 to 2025, transforming from a niche novelty into a multi-billion dollar industry. This report provides an in-depth analysis of that growth, highlighting the regions with the biggest surges in use, year-by-year market expansion, key drivers behind the trend, the major brands leading the market, and public health/regulatory responses across different countries. All major facts and figures are supported by citations to credible sources.

Market Growth Overview (2020–2025)

By every measure, nicotine pouches experienced dramatic global growth between 2020 and 2025. In the late 2010s the category was tiny – for example, total U.S. sales were only about $710,000 in 2016, when pouches first hit the U.S. market​. But uptake accelerated rapidly. By mid-2020, U.S. sales had already reached $216 million, a >300-fold increase in just four years. This explosive start set the stage for even greater growth through the early 2020s. Key global market size milestones include:

• 2020: The nicotine pouch category was in its infancy but growing fast. Swedish Match (maker of Zyn) alone shipped approximately 130 million cans of nicotine pouches worldwide in 2020​. (For context, a typical can contains 15–20 pouches.)
• 2021: Rapid expansion continued. Swedish Match’s worldwide pouch shipments jumped to 198 million cans in 2021 – a ~50% increase in volume in one year. This was driven largely by U.S. demand, where Zyn became the top nicotine pouch brand.
• 2022: The global market entered the billions. Euromonitor International estimates the global retail value of the nicotine pouch market at about $8.5 billion in 2022. In terms of units, roughly 10–12 billion individual pouches were sold worldwide in 2022. The United States accounted for the bulk of this, with an estimated 6.3 billion pouches sold in the U.S. in 2022 (about 58% of global volume)​.
• 2023: Growth surged by double digits again. Globally the category’s retail value jumped to ~$10.3 billion in 2023. Volume reached an estimated 15.5 billion pouches sold worldwide in 2023 – nearly 45% growth by units year-on-year. The U.S. remained the largest market (around 62% of global volume) with 9.5 billion pouches sold in 2023. Notably, Swedish Match (now owned by Philip Morris International) reported 385 million cans of Zyn shipped in the U.S. in 2023, up 62% from 2022​. This underscores how demand in America accelerated. Sweden was the second-largest market, with 2.2 billion pouches sold in 2023 (up from 1.8 billion in 2022). Other regions, discussed below, also saw significant upticks.
• 2024–2025 (Projected): The trajectory remains upward. PMI projected roughly 520 million cans of Zyn would ship in the U.S. in 2024 (another ~35% increase). To meet demand, the company is investing over $800 million in new U.S. factories. In fact, an expanded Kentucky facility is expected to provide capacity for ~900 million cans in 2025. Analysts forecast the global market value will reach around $16 billion by 2027 if current trends continue. In short, nicotine pouches are on track to sustain very high growth rates through the mid-2020s.

This remarkable expansion has been geographically uneven – dominated by certain key markets. Below we examine the countries and regions where nicotine pouch use and sales have increased most significantly, and how each contributed to the global boom.

United States: Driving the Nicotine Pouch Boom

Zyn nicotine pouch cans on a production line. The U.S. has become by far the largest market for these products, with Zyn leading sales.

The United States is the epicenter of nicotine pouch growth, representing the majority of global sales. Pouches entered the U.S. around 2016, and uptake by consumers has been rapid from 2020 onward. Total U.S. retail sales of nicotine pouches ballooned from virtually nothing a few years prior to $7.2 billion in 2022, then $8.6 billion in 2023. By 2023, an estimated 3% of U.S. adults were using oral nicotine pouches, a striking adoption rate in a short time. Industry sales data mirror this trend: in early 2022, over 808 million individual pouches were sold in the U.S. in just one quarter (Jan–Mar 2022)​ – compared to about 126 million in late 2019​ – illustrating how sales skyrocketed year-over-year.

Several factors fueled the U.S. boom:

• Tradition of Smokeless Tobacco: Americans have a cultural precedent for oral tobacco (chewing tobacco, dip, snus), which made nicotine pouches a more easily accepted concept. Many adult tobacco users found pouches a convenient, discreet alternative that fits existing habits.
• Regulatory Loopholes (Initially): Until recently, nicotine pouches (especially those using synthetic nicotine) fell into a gray area not tightly regulated by the FDA. This meant companies could introduce flavored nicotine pouches freely, at a time when flavored e-cigarettes were facing bans. As a result, pouches attracted consumers (including ex-vapers) who “can’t use flavored vape products anymore as they are banned” in some jurisdictions. The availability of mint, fruit, and other flavors gave pouches an edge in appeal​.
• Convenience and Discreet Use: Pouches can be used anywhere – at work, on flights, in offices or restaurants – without smoke or vapor. As pandemic work-from-home policies ended, the “return to office work… will also contribute to the category’s growth”, noted one analyst, since people who vaped at home often switch to discreet pouches at the workplace. This practical advantage helped expand the user base among those who cannot smoke or vape in certain settings.
• Harm Reduction Appeal: For smokers, nicotine pouches present themselves as a smoke-free nicotine source. While not approved as cessation tools, they are often marketed as a “better alternative” to cigarettes for adult nicotine users. Some smokers adopted pouches to reduce or replace smoking in situations where they’d otherwise go without nicotine.
• Industry Marketing and Accessibility: Major tobacco companies blanketed convenience stores with these new products. By design, most nicotine pouches have been sold alongside cigarettes and vape products in gas stations, convenience marts, and tobacco shops, making them highly accessible. Marketing emphasized how “convenient and discreet” pouches are, and brands leveraged social media (so-called “Zynfluencers” on TikTok/Instagram) to build buzz. This push greatly raised awareness and trial among U.S. nicotine consumers.

Critically, a few brands have dominated the U.S. market. Zyn, made by Swedish Match (acquired by PMI in 2022), is by far the leader. By Q3 2023 Zyn held about 77% of U.S. nicotine pouch retail market value share​ – an astonishing dominance. Zyn’s shipments in the U.S. grew 65.7% year-over-year in Q3 2023, and it shipped ~385 million cans in 2023 as noted earlier. Other players are much smaller: Altria’s On! brand was a distant second with ~11% U.S. value share in 2022, and Swisher’s Rogue third (~7% share). R.J. Reynolds/BAT’s Velo had presence early on, but fell behind in share. The U.S. market has attracted new entrants as well – for example, Imperial Brands’ U.S. arm (ITG) plans to launch 14 new pouch varieties in 2024, seeing “attractive category dynamics” in this fast-growing market.

Public health responses in the U.S. have begun to catch up to the trend. In 2022, a new law brought synthetic nicotine products (including many pouches) under FDA authority, closing the regulatory loophole​. Now, manufacturers must file Premarket Tobacco Applications for pouches similar to e-cigarettes. (Altria’s On! nicotine pouches were actually among the first to receive FDA marketing authorization in 2021.) Health authorities have also noted that youth use of nicotine pouches, while still low, is rising – 1.1% of U.S. middle/high-school students used pouches in 2022. Some localities have responded by including pouches in flavored tobacco sales bans (hundreds of U.S. communities prohibit sales of flavored nicotine pouches just as they do flavored cigars or vapes). In late 2023, U.S. Senate leaders even called for investigation of pouch marketing to ensure it’s not targeting teens​. Overall, however, U.S. regulators have treated nicotine pouches as a legal, regulated tobacco product rather than banning them, which, as we’ll see, contrasts with some other regions.

In summary, the U.S. from 2020 to 2025 went from zero to the world’s primary nicotine pouch market, driving the global growth story. Massive consumer uptake, fueled by flavors, accessibility, and industry investment, made America the proving ground for this new nicotine format.

Sweden and Scandinavia: From Snus to Pouches

Sweden and its Nordic neighbors were using smokeless oral tobacco (snus) long before “modern” nicotine pouches arrived. This cultural familiarity set the stage for Scandinavia to embrace nicotine pouches more gradually but steadily in the 2020–2025 period. In Sweden – the only EU nation where tobacco snus is legal – nicotine pouches (which contain nicotine but no tobacco) entered the market as an offshoot product around 2018. Growth has been strong, though not as explosive as in the U.S., given the already high popularity of snus.

By 2022 Sweden was the second-largest market for nicotine pouches globally, and it maintained that rank into 2023​. Swedish consumers bought about 1.8 billion nicotine pouches in 2022, which rose to an estimated 2.2 billion pouches in 2023. That’s roughly a 22% year-over-year increase in unit sales, indicating robust uptake. In value terms, the Swedish pouch market was worth about $347 million in 2022, growing to $434 million in 2023. Considering Sweden’s population (~10 million), these figures represent substantial per-capita usage – unsurprising in a country where over 20% of adult males use snus daily (the highest smokeless tobacco use in Europe).

Drivers in Sweden: The key driver is harm reduction and consumer preference. Sweden has one of the lowest smoking rates in the world (around 5% daily smoking) thanks to widespread snus use. Nicotine pouches piggyback on this, offering a tobacco-free option. Many existing snus users have experimented with pouches for the “cleaner” experience (no tobacco leaf, less drip). Pouches are also seen as a way to enjoy nicotine with possibly lower health risk – Sweden’s public health authorities generally acknowledge that tobacco-free nicotine pouches likely reduce risks compared to smoking​. Thus, smokers and snus-users alike view pouches as part of the “Swedish model” of tobacco harm reduction, continuing the trend that made Sweden the first EU country to hit the WHO’s 5% smoking rate goal.

The competitive landscape in Scandinavia is interesting. Swedish Match’s Zyn brand originated in Sweden, but on home turf it faces competition. BAT launched Lyft/Velo (a pouch brand) in Nordic markets around the same time, and smaller Swedish companies like Skruf (Imperial Brands) and GN Tobacco (White Fox brand) also vie for users. As a result, unlike in the U.S., no single brand completely dominates Sweden’s nicotine pouch sector – though Zyn and Velo are both popular. (Across Europe broadly, BAT’s Velo is the market leader by volume, as discussed later.) Also notable: Nordic governments have generally regulated pouches similarly to snus – e.g. Norway and Denmark allow them with age restrictions and nicotine concentration limits. Denmark’s market saw 589 million pouches sold in 2022, rising to ~745 million in 2023, indicating rapid growth there as well.

One challenge in Sweden/Scandinavia is that pouches remain a “niche within a niche.” The entire modern oral category is still a small portion of nicotine consumption – Euromonitor noted that even including snus, all oral tobacco was only ~2% of the global nicotine market in 2022​. So while growth rates are high, the absolute impact on public health (e.g. further reducing already-low smoking rates) is incremental. Still, the 2020–2025 period firmly entrenched nicotine pouches in Swedish nicotine culture. They are now part of the everyday options for nicotine users, with strong industry support: Swedish Match and others have aggressively innovated flavors and strengths for their home market. As we’ll see, Swedish Match’s success with Zyn abroad has roots in the product development done in Sweden’s discerning snus market.

Europe (Outside Nordics): Mixed Uptake Amid Regulatory Uncertainty

Outside of Scandinavia, European markets present a patchwork of outcomes for nicotine pouches between 2020 and 2025. In some countries, pouches gained a significant foothold; in others, they faced legal barriers or outright bans. This divergence largely stems from regulatory interpretations: since EU law bans traditional snus (except in Sweden) but did not initially cover tobacco-free nicotine pouches, many EU countries were unsure how to classify pouches. The result was rapid growth in some markets and suppression in others.

Several European countries saw surging nicotine pouch usage in the early 2020s where the products were allowed:

• United Kingdom: The UK embraced nicotine pouches as a consumer product (with age-18 restrictions). Uptake has been swift. UK consumers bought 92.1 million nicotine pouches in 2022, and the category grew +54.6% in 2023 by volume. By 2023, an estimated ~142 million pouches/year were being sold in Britain. Notably, Japan Tobacco’s Nordic Spirit brand captured ~45% of the UK market, thanks to heavy marketing and early launch in 2018. The UK’s open harm reduction stance (it promotes vaping and does not ban flavors) likely contributed to a receptive environment for pouches as well.
• Central/Eastern Europe: Growth has been especially rapid in some Eastern EU members. Poland’s nicotine pouch market jumped ~69.5% in 2023 alone​. The Czech Republic also showed “strong demand in 2022 and 2023”​. This led Czech authorities to introduce specific regulations: as of July 2023, Czechia implemented new rules on nicotine sachets (covering ingredients, quality, legal age, and a product registry) to formally legalize and control their sale​. Such regulatory clarity can further boost consumer confidence and growth. Other Eastern European countries like Hungary and Uzbekistan were highlighted for substantial retail volume increases from 2022 to 2023 as well​.
• Austria and Denmark: These smaller countries surprisingly ranked among the top per-capita users. Austria saw an estimated 477 million pouches sold in 2023​, making it one of the largest continental EU markets for pouches. Denmark, as mentioned, exceeded 700 million units by 2023​, reflecting the spillover of Scandinavian snus culture.
• Germany (An Outlier): In Germany, the story was very different. German regulators classified nicotine pouches as a food product (since they contain no tobacco) – meaning they fell under EU food safety law, which does not permit nicotine as a food additive. This effectively made commercial sale of nicotine pouches illegal in Germany’s stores. As a result, Germany – which might have been a huge market – remained largely closed to pouch products during this period. Consumers could only obtain them through online shops or grey-market channels​. The German Federal Institute for Risk Assessment acknowledged in Oct 2022 that pouches could reduce harm for smokers, but no legal change ensued. Stakeholders note that without clear status, “retailers will basically avoid selling them… and consumers will not be aware of the products”​. Indeed, Germany has had minimal uptake of nicotine pouches compared to neighbors, solely due to this legal gray area. (Any change likely hinges on an EU-wide decision in the future.)

Meanwhile, a few European countries moved to ban nicotine pouches outright as youth and health concerns grew:

• The Netherlands banned sales of all tobacco-free nicotine pouches in April 2023, citing the lack of a legal framework and wanting to prevent youth initiation.
• Belgium followed with a ban in October 2023
• There has even been talk of a potential EU-wide ban or tighter regulation on nicotine pouches. As of late 2023, the European Commission was reportedly “mulling a ban on nicotine pouches for the common market.”​ While no EU directive had been passed by 2025, this indicates significant scrutiny at the highest level in Europe.

The European public health stance is divided. Some, like the Dutch and Belgian authorities, treated pouches as a new addictive product to be stamped out (similar to how many EU countries treat snus or e-cigarettes). Others see an opportunity: for example, Czech Republic’s decision to regulate (not ban) suggests a harm reduction view, aiming to ensure product safety and keep them out of minors’ hands while allowing adults to use pouches. As a JTI spokesperson warned, “history shows bans of legal products often don’t meet goals and instead encourage illicit markets…we should aim for evidence-based regulation that acknowledges the potential of nicotine pouches to reduce risks associated with smoking”​. This pro-harm-reduction argument is weighed against fear of youth addiction.

In summary, Europe’s nicotine pouch growth from 2020–2025 was highly uneven. The UK, Nordic region, and parts of Central/Eastern Europe saw booming sales and an influx of brands, whereas large markets like Germany, France (notably absent so far), and some others stalled due to legal barriers. By 2025, nicotine pouches were at least available in over a dozen European countries (and gaining users in most of those), but the regulatory future remains uncertain. The next few years will likely see Europe either embrace a unified framework (perhaps setting nicotine limits or age controls for pouches) or potentially move toward stricter limits given the rumblings in Brussels.

Canada: Cessation Aid Introduction and a Flavor Crackdown

In Canada, nicotine pouches entered the market in the early 2020s under a unique positioning: they were marketed as Nicotine Replacement Therapies (NRTs) for smoking cessation. Canadian law treats nicotine (when not in tobacco) as a drug, so any nicotine pouch product needed Health Canada authorization as a quitting aid, similar to nicotine gums or lozenges. The leading product, Zonnic (a nicotine pouch by Swedish Match), was approved and sold as an over-the-counter NRT. This means from the outset the Canadian pouch market was more medical/controlled compared to the U.S. or Europe.

Growth and usage (2020–2023): Because of the NRT framing, nicotine pouches in Canada were initially sold in pharmacies and some retail outlets with little fanfare. Usage numbers remained modest through the early 2020s, especially compared to the U.S. However, even as a quit-smoking aid, the product began attracting recreational use. Some young people reportedly started buying flavored Zonnic pouches not to quit smoking, but to enjoy nicotine – effectively using it like any other nicotine product. By 2023, Canadian public health groups grew alarmed that nicotine pouches (meant for adult smokers) were gaining popularity among youth who never smoked​. This spurred a strong regulatory reaction in 2024.

Regulatory response: In August 2024, Canada implemented new federal regulations to severely restrict nicotine pouch sales and marketing​. Key measures included:

• Banning retail sales in convenience stores and gas stations – as of August 28, 2024, Zonnic pouches could no longer be sold in general retail​. They are now only allowed behind-the-counter in pharmacies, like a true medicinal product​.
• Flavor bans: All flavors except menthol/mint were prohibited. The two non-mint flavors (Berry Frost and Tropic Breeze) were ordered recalled from the market​. Only a plain mint option can remain, again aligning with its use strictly for smoking cessation.
• Marketing and packaging restrictions: Any advertising or packaging appealing to youth is now banned​. Pouch packages must carry a clear warning about nicotine addiction and state they are for quitting smoking.
• New product approvals tightened: Health Canada signaled that any new nicotine pouch products (as NRTs) will face stricter scrutiny, and must adhere to the same flavor limits and pharmacy-only sales channel.

These actions essentially froze the Canadian nicotine pouch market in a tightly controlled state. While pouches remain available as quit aids, their growth as a lifestyle consumer product has been curtailed by law. The Canadian approach highlights public health caution: officials noted “strong concerns… regarding youth appeal of nicotine pouches” and took preemptive steps​. By treating pouches as medicinal NRTs only, Canada’s government hopes to prevent a surge of new nicotine users while still allowing smokers to access pouches if they believe it will help them quit cigarettes.

It’s worth noting that Canada’s market size for pouches was never very large up to 2023 – likely on the order of only a few million dollars in annual sales (data is scarce). The 2024 regulations may further limit growth. Canada’s stance contrasts with its neighbor the U.S., and it will be an important test case: will keeping nicotine pouches in pharmacies (and flavor-restricted) eliminate most youth uptake while still permitting harm reduction for smokers? The impact on usage trends in 2025 and beyond remains to be seen.

Asia-Pacific and Other Regions: Early Stages and Surprising Hotspots

Outside of North America and Europe, nicotine pouches were still in early adoption phase by 2020–2025, but there are notable developments in Asia-Pacific and other regions:

• Japan: Japan presents a unique case. The country has been a global leader in shifting smokers to alternative nicotine products (especially heated tobacco like IQOS). In line with its harm-reduction strategy, Japan showed openness to nicotine pouches. By 2022, the Japanese government even reduced the excise tax on nicotine pouches relative to cigarettes as a policy nudge to encourage switching​. This favorable stance – quite progressive for Asia – meant that nicotine pouches could be sold legally in Japan, though under certain regulations. The market in 2020 was essentially zero, but by 2024 the Japan nicotine pouch market reached an estimated $3.6 million in revenue. While small, it is forecast to grow rapidly; projections put Japan at $32 million by 2030 (44% CAGR)​. Japan Tobacco Inc. (JTI) has introduced its Nordic Spirit pouch brand in Japan on a trial basis, leveraging its domestic reach. Early adoption is likely among Japan’s smokers who are seeking smoke-free alternatives but are not interested in vaping (notably, nicotine e-liquids for vaping are effectively banned in Japan). The reduced tax and government’s 2018 plan to cut smoking rates below 12% have positioned nicotine pouches as one more tool in Japan’s anti-smoking toolkit​. In short, Japan in this period laid the groundwork for growth, even if 2020–2023 actual sales were nascent.
• South Asia (Pakistan): One of the most remarkable growth stories has been Pakistan – a country not commonly associated with novel nicotine products. British American Tobacco launched Velo nicotine pouches in Pakistan in early 2020, targeting the large base of smokeless tobacco users there​. The response exceeded expectations: by late 2022, BAT announced Velo was selling over 40 million pouches per month in Pakistan, making it the company’s third-largest market globally for nicotine pouches*. Pakistan saw a staggering 70% year-on-year growth in nicotine pouch sales in 2023, rising from 127.8 million units in 2022 to an expected much higher figure in 2023​. The driver here is clear – Pakistan has an estimated 10 million users of traditional oral tobaccos (like gutka, paan, etc.)​. Nicotine pouches offer a cleaner, branded alternative, and BAT capitalized on this by aggressive marketing and distribution. The success in Pakistan suggests that in low and middle-income countries with prevalent smokeless tobacco use, modern pouches can gain traction quickly if allowed.
• Other Asia-Pacific Markets: Many Asia-Pacific countries were still largely untouched by nicotine pouches by 2025, often due to regulatory barriers. Notably, Australia and New Zealand have banned nicotine pouches outright, treating them like other nicotine products that require pharmaceutical registration (neither country allows sales of snus or many e-cig products). China, the largest smoking market, did not have a consumer pouch market (and any future introduction would be heavily regulated by the state monopoly). However, some Southeast Asian markets saw initial trials – for example, the Philippines had Nordic Spirit pouches introduced by JTI on a limited scale​. India had no legal nicotine pouches and is unlikely to allow them soon given its ban on e-cigarettes and many smokeless products. Meanwhile, Central Asia showed pockets of demand – as mentioned, Uzbekistan saw growth, and other Eurasian markets may be experimenting.
• Africa and Middle East: Nicotine pouches were largely niche in these regions through 2025. One notable mention is South Africa and Mexico being used as “test markets” by companies​. By 2023, global companies were launching pilot distribution of pouches in some low- and middle-income markets to gauge interest. These trials indicate the next wave of expansion could include emerging economies (if regulation permits). The Middle East had minimal presence, though one should note Saudi Arabia and other Gulf states have massive smokeless tobacco usage (shammah, etc.), so they could be targets for pouches in the future.

Overall, beyond Europe and the Americas, nicotine pouch growth 2020–2025 has been selective. Japan’s positive regulatory approach and Pakistan’s enthusiastic consumer uptake stand out as highlights. Many countries are still unaware of or just encountering these products, meaning the global growth story is likely to continue beyond 2025 as new markets open. Industry analysts predict Asia-Pacific and Eastern Europe will contribute most of the growth going forward​, now that North America is relatively mature. Indeed, Euromonitor projects China could become the largest Asia-Pac market by 2030 (if allowed), reaching ~$54 million by then​. The groundwork laid in 2020–2025 – with pouches available in at least 25 countries by 2023 – is setting the stage for a wider global expansion in the second half of the decade.

Key Drivers Behind the Recent Growth

Several converging drivers explain why nicotine pouches gained such momentum in 2020–2025. These factors span regulatory, commercial, and cultural domains:

• Regulatory Loopholes and Shifts: In many markets, nicotine pouches initially slipped through gaps in tobacco laws. This allowed rapid introduction with few restrictions (e.g. wide flavor availability) at first. The U.S. is a prime example – pouches launched with candy and mint flavors at a time when flavored vapes were being restricted, drawing in users seeking flavored nicotine. Similarly, in the EU, the lack of an snus ban on pouches meant companies could legally sell in places like Germany (until authorities intervened) and throughout Eastern Europe, creating a head start in market penetration. Conversely, some governments intentionally created supportive regulation for pouches as a harm reduction tool. Japan’s tax reduction on pouches in 2022 exemplifies a policy shift encouraging growth by making pouches cheaper relative to cigarettes​. Overall, wherever regulators either permitted pouches by design or by omission, growth followed. It’s only when regulations tightened (e.g. Canada’s 2024 curbs, EU country bans) that growth in those locales slowed. Thus, the regulatory climate – whether permissive or restrictive – has been a key determinant of pouch market growth.
• Industry Investment and Marketing: The tobacco industry’s heavy investment in nicotine pouches has undoubtedly driven their rise. All major multinational tobacco companies jumped into this category around 2019–2020, pouring resources into product development, manufacturing, and aggressive marketing. For example, Philip Morris International (PMI) is investing over $800 million to expand Zyn factories in the U.S. to meet demand. British American Tobacco reportedly spent £1 billion on marketing campaigns for its oral nicotine products, using social media and sponsorships to promote brands like Velo. Japan Tobacco International gave out free samples of Nordic Spirit at festivals in some regions to popularize the product​. These efforts quickly built awareness and trial. Marketing emphasizes that pouches can be used anytime (“when you can’t smoke”) and often positions them as tech-forward lifestyle products. The result is that in a few short years, nicotine pouches went from unknown to ubiquitous at points-of-sale. Industry muscle also ensured strong distribution: tobacco companies leveraged their existing retail networks, so gas stations and convenience stores worldwide started stocking pouches alongside cigarettes. This high visibility and availability have been core drivers of adoption.
• Consumer Demand for Smoke-Free Alternatives: There is a genuine consumer pull for products that deliver nicotine without combustion or vapor. Many adults are looking to reduce the harm from their nicotine use (or at least avoid smoking in certain settings). Nicotine pouches hit a sweet spot: they are tobacco-free, smoke-free, and discreet, yet still provide a swift nicotine effect. For smokers, this can be an appealing substitute or supplement (dual use). For instance, some smokers use pouches on airplanes or at work instead of smoking. Even some vapers have turned to pouches, especially where vaping is banned in public places. The wide flavor selection and varying strengths also cater to consumer preferences – whether someone wants a strong nicotine kick or just a milder experience with a mint or fruit taste. Additionally, pouches often cost less per day than cigarettes. In the U.S., a can of Zyn (~15 pouches) costs around $5, versus $8+ for a pack of cigarettes​. This price advantage, especially as cigarette taxes rise, made pouches economically attractive to price-sensitive nicotine users. All these factors created a receptive consumer base that drove word-of-mouth and organic growth on top of industry marketing.
• Cultural and Behavioral Trends: The early 2020s saw lifestyle shifts that pouches were well-suited for. The tail end of the COVID-19 pandemic changed nicotine use patterns – as people spent more time at home, many vaped freely; but returning to shared spaces meant a need for discreet options, boosting pouch appeal. There’s also a generational aspect: Generation Z and younger adults have shown interest in nicotine pouches, sometimes even as a novel stimulant for focus or stress relief (separate from smoking cessation)​. Social media trends like the “#Zynchallenge” (users holding multiple pouches in their lip) or memes about using pouches for a buzz indicate a cultural curiosity, albeit one that concerns health experts. In some circles, pouches became almost a fad by 2023, fueled by online chatter. Additionally, in countries with traditional smokeless tobacco use (South Asia, parts of Africa), pouches tapped into existing cultural practices but with a modern twist – a driver evident in Pakistan’s case. In summary, nicotine pouches managed to align with contemporary lifestyle trends: health-conscious but still seeking nicotine, socially connected young adults, and populations culturally inclined to oral tobacco use all found reasons to try pouches.
• Harm Reduction Narrative: Underlying many of these drivers is the narrative (often promoted by manufacturers) that nicotine pouches are a harm reduction product – delivering nicotine without the thousands of chemicals in cigarette smoke. Some public health experts cautiously agree that pouches are likely far less harmful than smoking (being similar to nicotine gum or snus in risk profile). This narrative has been a selling point to regulators and adult smokers. PMI, for example, explicitly markets Zyn as part of its “smoke-free future” strategy to transition away from combustible cigarettes. The idea that pouches could help smokers quit or divert them from relapsing is a powerful driver for growth (though it’s not yet conclusively proven how effective they are for cessation). Nonetheless, the perception of reduced harm has made some smokers and authorities more accepting of pouches, thereby expanding the market.

In combination, these drivers created a perfect storm for nicotine pouch growth. By capitalizing on regulatory gaps, leveraging big tobacco’s marketing might, and meeting consumers’ desire for convenient and lower-risk nicotine options, pouches achieved penetration and growth rates rarely seen in the tobacco/nicotine industry.

Major Brands and Market Players

The nicotine pouch landscape from 2020 to 2025 has been dominated by a few major brands – all of which are owned by large tobacco companies or nicotine specialists. Here are the leading brands contributing most of the market share globally:

• Zyn (Swedish Match / PMI): Zyn is the indisputable market leader worldwide. As of 2023, Zyn accounted for about 38.6% of global nicotine pouch retail volume​. It is the top-selling brand in the U.S. by a wide margin and has a strong presence in Sweden and other markets. Swedish Match (a Swedish company) created Zyn and drove its U.S. success; in late 2022, Philip Morris International acquired Swedish Match, so now PMI owns Zyn globally. Zyn’s popularity comes from its early mover advantage, a wide range of flavors/nicotine strengths, and heavy marketing. In 2023 alone, 385 million cans of Zyn were sold in the U.S.. The brand’s name has even entered pop culture (“Zyn aficionado” became slang for pouch users). With PMI’s investment behind it, Zyn continues to expand production and distribution. By Q3 2023, Zyn held 77% share of the U.S. market by value and it remains the benchmark brand for the category.
• Velo (British American Tobacco): Velo is the global #2 player with roughly 23.4% of global volume share in 2023. BAT’s nicotine pouch brand has undergone some naming variations (sold as “Lyft” in some countries initially, then rebranded to Velo). Velo has been particularly strong in Europe. In markets like Pakistan and Eastern Europe, BAT pushed Velo aggressively, making it a key brand in those regions. While Velo has not captured U.S. leadership (BAT’s attempts in the U.S. were more muted), globally it benefits from BAT’s huge sales network. BAT reports indicate Velo is present in dozens of countries. By leveraging its experience with snus (BAT owns the snus brand Epok/LYFT), the company has positioned Velo as a top competitor, especially where Zyn is not yet entrenched.
• On! (Altria Group): On! holds about 13.5% of global nicotine pouch volume​. Originally developed by a small firm, On! was acquired by Altria (Marlboro’s parent company) in 2019. In the U.S., On! enjoyed early success in convenience stores, often priced slightly below Zyn. Altria also gained a first-mover regulatory win: in 2021, several flavors of On! nicotine pouches became the first to receive FDA authorization as “appropriate for the protection of public health,” allowing them to remain on the U.S. market legally. This gave On! credibility and stability as the FDA cracked down on other products. On! is sold in neat rectangular tins and has marketed itself as “anytime nicotine.” Its market share is notable in the U.S. (the #2 brand by units for much of 2020–2022) and it’s available in some EU markets as well. Still, On! remains behind Zyn and Velo in scale.
• Rogue (Swisher International): Rogue Nicotine Pouches represented about 9.5% of global volume in 2023. Rogue is unique in that it’s made by Swisher (known for cigars and smokeless tobacco) rather than a Big Tobacco cigarette company. In the U.S., Rogue positioned itself with a rugged, independent branding and gained a foothold in convenience stores. It offers flavors like wintergreen and mango at competitive prices. While Rogue’s share globally is under 10%, it has been a strong #3 or #4 brand in the U.S. market. Its success shows the category isn’t exclusively owned by the cigarette giants – smokeless-focused companies can leverage their know-how and distribution to compete.
• Nordic Spirit (Japan Tobacco International): Nordic Spirit has a smaller global share (~1.3% in 2023)​, but it is significant as JTI’s flagship nicotine pouch product. Developed in Sweden, Nordic Spirit launched in the UK, Sweden, and a few other markets around 2018–2019. In the UK, it has done very well – JTI claims Nordic Spirit holds ~45% of the UK pouch market. JTI has also used this brand to enter some Asian markets (Philippines, Japan on a trial basis). While far behind the top three in volume, Nordic Spirit benefits from JTI’s marketing and distribution power, especially wherever JTI’s cigarette brands are strong.
• Other Brands: A variety of other brands exist, typically with more regional or niche presence. ZoneX and Skruf (both by Imperial Brands) have a following in Scandinavia and some EU markets. White Fox (by GN Tobacco of Sweden) is a high-nicotine brand popular in some online niches and certain countries. Shiro is a brand originally from a smaller manufacturer (Oden’s) but now tied to PMI in some markets. Many smaller companies in Europe have launched local pouch brands – e.g. 77 Pouches (Poland), Ace (Ministry of Snus in Denmark), and others – but these collectively make up a small fraction of market share. The competitive field in 2020–2025 was dynamic, with new entrants trying to capture the still-forming consumer loyalties. As one analyst observed, “the category is still very young, so there is no strong brand loyalty… consumers are likely to try new brands. This makes the market attractive to new entrants… the category is growing very fast.”​ Indeed, by 2025 nicotine pouches had dozens of brands globally, but the five listed above account for the majority of sales.

It’s important to note that all the top pouch brands are owned by companies with deep pockets and tobacco industry experience. This has raised some public health flags – the same corporations that sell cigarettes are now leading the charge on nicotine pouches, which invites scrutiny of their marketing practices and true intentions (harm reduction vs. market expansion). Nonetheless, from a consumer perspective, brand competition has led to a wide variety of options in flavors, strengths, and pricing for nicotine pouches by 2025.

Public Health Reactions and Regulatory Changes

The rapid ascent of nicotine pouches has prompted a range of public health reactions and regulatory changes in high-growth regions. Stakeholders are essentially trying to balance the potential benefits (if pouches divert smokers from cigarettes) against the risks (new nicotine addictions, youth appeal, unknown long-term effects). Here we summarize the key responses:

• United States – Regulatory Oversight and Monitoring: U.S. authorities, notably the FDA and CDC, have taken a cautious but measured approach. As mentioned, in April 2022 the FDA’s authority was extended to all nicotine products regardless of source, closing the synthetic nicotine loophole. This meant many pouch brands had to submit regulatory applications to stay on the market. The FDA has also enforced requirements like nicotine addiction warning labels on packaging (Zyn cans in the U.S. carry a large warning, similar to smokeless tobacco). Enforcement actions have been relatively light so far, as FDA prioritizes truly high-risk cases; most major pouch brands remain available while their applications are under review. Public health officials have also ramped up surveillance of youth use. The CDC reported in 2022 that 0.4% of U.S. adults were current nicotine pouch users (still relatively low), and 1.8% of youth in 2023 had used pouches in the past 30 days. These numbers are being tracked closely. Campaigns like those by Truth Initiative and Tobacco-Free Kids have emerged to educate about pouch risks, arguing that nicotine pouches “contain sufficient nicotine to sustain addiction” and must be regulated to prevent youth uptake. We saw in late 2023 and 2024 some U.S. politicians (e.g., Senate Majority Leader Schumer) calling for stricter scrutiny of marketing, especially questioning fruity flavors and social media promotions that could attract teens. Overall, the U.S. regulatory reaction has been to integrate pouches into existing tobacco control frameworks (age limits, marketing review, public education) rather than ban them. The coming years will likely bring specific FDA rulings on which pouch products can be sold (based on science of their risks vs benefits).
• European Union – From Unregulated to Bans: As detailed earlier, the EU lacked a unified policy initially, leading to a patchwork. By 2023, however, the trend in some EU nations was toward prohibition (Netherlands, Belgium bans)​ or strict regulation (Czech Republic’s decree treating pouches akin to tobacco)​. The European Commission’s contemplation of an EU-wide ban or regulation indicates that the bloc might include nicotine pouches in the next iteration of the Tobacco Products Directive. If a ban were proposed, it would spark intense debate between harm reduction proponents and those concerned about addicting a new generation. Meanwhile, countries like Germany maintain a de facto ban (via the “food” classification issue)​. Sweden and Denmark have specific laws – Denmark, for instance, limited nicotine content per pouch to 12 mg and requires health warnings on packaging from 2021 onwards. Public health voices in Europe are split. Some public health agencies, such as Germany’s BfR, openly acknowledged the reduced harm potential of pouches compared to smoking​. The UK’s health authorities have been relatively quiet about pouches (focusing more on vaping), effectively tolerating them as long as they are age-restricted and follow product safety standards. On the other hand, organizations like the European Respiratory Society and certain anti-tobacco NGOs have lobbied for bans, arguing that “tobacco-free” nicotine products are a gateway for youth and an addictive threat. Expect European regulation to tighten in the near future – possibly setting maximum nicotine levels, standardized packaging, and advertising curbs at an EU level if not an outright ban.
• Canada – Medicalization and Youth Protection: Canada’s reaction, covered above, was to severely restrict and medicalize nicotine pouches once signs of youth use appeared. Canadian public health groups (Heart & Stroke Foundation, etc.) applauded the 2024 measures that removed flavored pouches from general sale​. Canada’s approach is perhaps the strictest among major markets that still allow pouches at all. It essentially aims to eliminate any recreational use and confine pouches strictly to smoking cessation contexts. This aligns with a broader Canadian trend of being very cautious on novel nicotine products (Canada also banned most flavored vapes and set a nicotine cap for e-liquids, for example). The success of this strategy will be observed in whether youth usage drops to negligible levels after the 2024 changes.
• Asia-Pacific – Varying Stances: In Asia, regulatory responses vary widely. Japan, as noted, took a relatively positive regulatory stance – incorporating pouches into its tobacco product regulatory system with lower taxes to encourage substitution. The health authority in Japan likely sees pouches as analogous to snus, which, while not common in Japan, are understood to be lower risk than smoking. There is not much public controversy in Japan so far, partly due to low uptake. Australia and New Zealand took the opposite route by explicitly banning nicotine pouches (unless perhaps one went through a therapeutic approval, which none have)​. This mirrors their zero-tolerance policy on smokeless tobacco (Australia has long banned snus). Low- and middle-income countries have had minimal regulatory discussion yet, but some are waking up to pouches due to industry activity. For example, in 2023 the government of India issued advisories to watch for nicotine pouches being sold illegally (since India bans all smokeless nicotine products aside from pan masala). International bodies like the World Health Organization have started to mention nicotine pouches in their reports, generally urging governments to regulate them like other tobacco products and to ban marketing that targets youth. The WHO’s TobReg group in 2021 stated that pouches are addictive and should be kept away from young people​. We may see more guidance from WHO in the coming years, possibly as part of updates to the Framework Convention on Tobacco Control implementation.
  

In terms of public health research and sentiment, the period 2020–2025 saw growing interest in studying nicotine pouches. Researchers have analyzed marketing claims (finding that companies heavily push convenience and discreet use in ads), youth appeal (flavors and social media are concerning), and patterns of use (many pouch users are dual users who also smoke or vape). Toxicological studies are ongoing to understand if any ingredients in pouches pose oral health risks. So far, consensus is that while not risk-free, nicotine pouches are likely substantially less harmful than smoking – but addiction and youth initiation are key worries. Public health messaging has accordingly been two-pronged: encouraging smokers to quit completely (with or without pouches), and warning non-tobacco-users (especially youth) not to start using nicotine in pouch form. For example, the U.S. Surgeon General and CDC have reiterated that “the use of products containing nicotine in any form among youth… is unsafe”, which applies to pouches as well.

In summary, regulators and health organizations worldwide are now actively grappling with how to handle nicotine pouches. The 2020–2025 explosion forced this issue onto the agenda. Approaches range from integration (U.S.), to harm-reduction support (Japan), to precautionary bans (Netherlands, Australia), to strict medicinal framing (Canada). The coming years will likely bring more standardized regulations as knowledge improves. The challenge for regulators is to maximize any public health benefit (if pouches can get smokers off deadly cigarettes) while minimizing risks (new addiction among youth or non-smokers). Striking this balance will determine the sustainable future growth of nicotine pouches globally.

Conclusion

Between 2020 and 2025, nicotine pouches evolved from a little-known innovation into a major and fast-growing segment of the nicotine market worldwide. This period was marked by surging consumer uptake – particularly in the United States, which now comprises the lion’s share of sales – and rapid expansion into new regions. Year by year, sales climbed dramatically, with global revenue jumping from the low billions in 2020 to an estimated $7–10+ billion by 2023. Countries like Sweden, Denmark, and Pakistan showed that pouches could be adopted in very different cultures and contexts when the conditions were right. The driving forces have included favorable regulatory gaps, intense industry promotion, and genuine consumer desire for smoke-free nicotine alternatives. At the same time, the rise of nicotine pouches has sparked important debates in public health: Are they a promising harm reduction tool that can further reduce smoking rates, or are they a Trojan horse for Big Tobacco to hook a new generation on nicotine? Policymakers have responded with a spectrum of actions – from supportive regulation to outright bans – underscoring both the potential and the risks seen in this new product category.

As of 2025, nicotine pouches are at a crossroads. The next few years will likely determine whether their global growth maintains momentum or faces headwinds. Industry projections remain optimistic, envisioning continued double-digit growth and entry into dozens more markets. Indeed, production capacity is being ramped up (e.g. nearly a billion cans annual capacity planned for 2025 by one company​) to feed what companies believe is still rising demand. If regulators implement balanced frameworks that allow adult smokers to access pouches while minimizing youth exposure, nicotine pouches could play a constructive role in tobacco harm reduction globally. Conversely, if youth usage spikes or if evidence of health harms emerges, we could see a regulatory crackdown that stifles growth.

What is clear from 2020–2025 is that nicotine pouches are no longer a regional experiment but a global phenomenon. Their growth has already altered the landscape of nicotine products – contributing to declines in more harmful forms (cigarette volumes are falling faster in markets with high pouch uptake, like the U.S.). Public health experts will continue watching closely, and further research will shed light on long-term effects. For now, nicotine pouches remain on a rapid growth trajectory, fueled by consumer demand for convenient, smokeless nicotine. The world’s experience in this half-decade will inform how we harness or curb this trend moving forward. As with any disruptive product, there are both opportunities and challenges, and the story of nicotine pouches is still unfolding past 2025.

Sources:

1. Majmundar et al., JAMA Network Open (2022) – Nicotine pouch sales trends in the US​pmc.ncbi.nlm.nih.gov​tobaccoreporter.com.
2. Truth Initiative (Sep 2024) – News article on PMI investment, U.S. pouch sales and growth​truthinitiative.org​truthinitiative.org.
3. Tobacco Reporter (Jan 2024) – “The Potential of Pouches” Euromonitor data on global market size, country sales, and regulatory outlook​ tobaccoreporter.com​tobaccoreporter.com.
4. Campaign for Tobacco-Free Kids (2023) – Global market facts and brand shares​ tobaccofreekids.org​tobaccofreekids.org.
5. Lung Saskatchewan (Aug 2024) – Announcement of Canada’s new nicotine pouch regulations​lungsask.ca​lungsask.ca.
6. Ken Research (2024) – Asia-Pacific market outlook (insights on Japan’s regulatory stance)​marketresearch.com.
7. CDC – Nicotine Pouches info page (definition, youth warnings)​ cdc.gov​cdc.gov.
8. Business Insider (Feb 2024) – Report on Zyn’s U.S. sales growth and forecasts ​businessinsider.com​businessinsider.com.
9. Additional sources as cited inline – [Swedish Match annual reports】​swedishmatch.com​swedishmatch.com, [JTI spokesperson quotes and EU regulatory developments】​tobaccoreporter.com​tobaccoreporter.com, [CDC and FDA statements】​tobaccofreekids.org, etc.