1 Nicotine Pouches Key Raw Materials and Suppliers Analysis
The main raw materials of nicotine pouch are microcrystalline cellulose and nicotine.
Microcrystalline cellulose is a quality ingredient used as a binding agent, emulsifier, softener, suspending aid, thickener, or stabilizer in personal care products, pharmaceuticals, food & beverages, detergents, paints, and several other sectors.
Nicotine is a naturally produced alkaloid in the nightshade family of plants and is widely used recreationally as a stimulant and anxiolytic. As a pharmaceutical drug, it is used for smoking cessation to relieve withdrawal symptoms. Nicotine is one of the most important raw materials.
Table Upstream Raw Material Suppliers of Nicotine Pouch with Contact Information
Raw Material | Suppliers | Contact Information |
Nicotine | Next Generation Labs | Web: www.nextgenerationlabs.com Tel: [email protected] Add: 1012 College Road, Suite 201 Dover, DE 19904 |
Chemnovatic |
| |
Tobacco Technology Inc. | Web: www.tobaccotech.com Tel: 1-410-549-8810 Add: Eldersburg, MD USA | |
Microcrystalline cellulose | Tate & Lyle PLC | Web: www.tateandlyle.com Tel: +44 (0)20 7257 2100 Add: 5 Marble Arch, London, W1H 7EJ, United Kingdom |
Cargill | Web: www.cargill.com Tel: 800-227-4455 Add: PO Box 9300 Minneapolis, MN |
2 Key Raw Materials Price Trend
Synthetic nicotine is currently a relatively small category but growing quickly. One of the drawbacks of synthetic nicotine is that it is approximately four times more expensive to produce than naturally sourced nicotine. However, the ratio is set to fall as volumes increase and economies of scale are realized. Next Generation Labs has been the pioneer in the market for synthetic nicotine, and it announced in 2019 that it would be doubling its production capacity. Contraf-Nicotex-Tobacco (CNT) launched synthetic nicotine in 2018, which was indicative of the potential seen in the category. In April 2022, in the US, a federal law came into effect extending the FDA’s authority to regulate synthetic nicotine. Previously FDA authority had been restricted to products derived from tobacco.
Pouches, which hold nicotine pouches and snus, are made of chemical bonded nonwoven or cellulose, which can be either organically or synthetically produced. Extraction sources are therefore either plant or fossil fuel-based, and the raw material providers are chemical or plastic companies.
3 Major Distributors of Nicotine Pouches
The major distributors of nicotine pouches include Northerner, HAYPP, White Pouches, Nicokick, and Amazon.
Table Major Distributors of Nicotine Pouches with Contact Information
Distributors | Contact Information | Regions |
Northerner | Web: www.northerner.com Tel: +18445164699 | Europe |
HAYPP | Web: www.haypp.com Tel: +44 8000 489 014 Add: Birger Jarlsgatan 43 SE- 111 45 STOCKHOLM Sweden | Europe |
White Pouches | Web: www.whitepouches.com Email: [email protected] Add: Box 1042, 851 11, Sundsvall, Sweden | Sweden |
Nicokick |
| Sweden |
Amazon | Web: www.amazon.com Tel: 206-266-1000 Add: 410 Terry Avenue North, Seattle, WA 98109, United States | USA |
4 Production Process of Nicotine Pouch
The production process of nicotine pouches begins with two key raw materials: cellulose and synthetic nicotine. Cellulose, a natural organic compound, is mixed with synthetic nicotine, which is a chemically produced form of nicotine. This mixture is then processed by a Pouch Packing Machine, which encapsulates the nicotine and cellulose blend into individual pouches. Following this, the pouches move on to a Labeling Machine, where each pouch is labeled for identification and branding purposes. Once labeled, the pouches are packaged and prepared for distribution as nicotine pouches, ready for consumer use. This process ensures that the nicotine pouches are manufactured with precision and quality control at each stage.
Figure Production Process of Nicotine Pouch
5 Nicotine Pouches Industry Trends
The Nicotine Pouches market is experiencing significant trends that are reshaping its growth and dynamics. These trends span a range of factors, including product variety, flavor variety, nicotine strength and bag size. Nicotine Pouches have experienced a significant increase in popularity among non-smokers, thereby broadening the consumer base. Driven by the increasing environmental awareness, the market is paying more and more attention to sustainable and environmentally friendly packaging solutions. Technological advances in pouch design and nicotine delivery mechanisms enhance the user experience and ensure effective nicotine delivery. With the continuous development of technology, the Nicotine Pouches industry is constantly introducing new technologies. For example, Nicotine Pouches Heat not Burn Technology developed by Swedish Match uses heating technology to perfectly restore the taste of cigarettes, and the smoke contains almost no harmful substances.
6 Nicotine Pouches Growth Drivers
Table Growth Drivers
Item | Descriptions |
Can help quit smoking | Nicotine is the main addictive substance in tobacco. When a person uses tobacco, many parts of the body get used to having nicotine in them. When a person quits tobacco, they also quit nicotine and will likely have withdrawal symptoms from it. This is because the body has to get used to not having nicotine. One such way could be nicotine pouches. This smokeless, tobacco-free alternative is an extremely effective tool for smoking cessation. They deliver that same familiar nicotine buzz, but without many of smoking’s harmful side effects. In 2020, European Tobacco Harm Reduction Advocates (ETHRA) conducted an online survey on over 37,000 respondents from the 28 EU countries subjected to the European directive on tobacco products (TPD). The survey covered questions about snus and vaping products using preferences. It should be noticed that the report uses the term “snus” interchangeably with “nicotine pouches”. The most important conclusion from the report is the fact that 85,6% percent of surveyed users in Sweden have quit smoking thanks to nicotine pouches. It gives great hope for a completely smoke-free society in the future. |
The product itself has competitive advantages | The traditional way of smoking will produce second-hand smoke, the use of the place is limited and will stain the teeth. However, the Nicotine Pouch is a smoke-free nicotine, just put it under the lips, it will not stain the teeth, and can be used anywhere. One sachet contains natural fiber, chewing base filler, nicotine and fresh flavor, good taste, while still releasing strong nicotine. The main advantage of switching to Nicotine Pouches is that the same amount of nicotine can be consumed in a way that reduces harm, rather than absorbing the substance through the lungs like a vaporizer and cigarette. Nicotine Pouches are one of the better alternatives to cigarettes. |
7 Nicotine Pouches Market Challenges
Table Market Challenges
Item | Descriptions |
Strict market supervision | In the United States, tobacco-free Nicotine Pouches are required to carry a warning label saying “This product contains nicotine. Nicotine is an addictive chemical”, and many Nicotine Pouches are only sold to consumers over 21 years old. Compared with other tobacco products, the Nicotine Pouches industry has a low entry barrier, but this type of product also needs to be regulated by the FDA. The Swedish Ministry of Health and Human Affairs proposed the promulgation of the Tobacco-Free Nicotine Products Act to formulate regulations on product requirements, labeling, sales, product management, age restrictions, etc. The government or government-designated department will specify in detail what ingredients a product can contain, how product claims are made, and how the product is labeled. The purpose of formulating this new bill is to include nicotine-containing products that have not yet been developed. Therefore, strict regulation of Nicotine Pouches by various countries is a challenge facing the Nicotine Pouches market. |
8 Nicotine Pouches Market Restraints
Table Market Restraints
Item | Descriptions |
Health related side effects | Nicotine Pouch Products contain nicotine. Nicotine is an addictive chemical compound found in tobacco plants. Nicotine use can cause serious health problems including increased blood pressure and hardening of arterial walls, causing heart attacks. Using nicotine pouches regularly increases the risk of leukoplakia in the mouth. They are grey-white patches and appear where the user places their chew, dip, or pouch. Unfortunately, these patches are irreversible. They are painless and pose no complications, but regular use may result in severe gum disease, oral cancer, or leukoplakia. The users also experience receding gum lines, bad breath, destroyed gum tissues along with tooth decay and cavities. The shrinking gums expose the root of the tooth, which may result in tooth loss. A series of health-related side effects will hinder the market growth. |
