Nicotine Pouches Market Size, Share & Trend Analysis Report By Product (Tobacco-derived, Synthetic), By Flavor (Original/Unflavored, Flavored), By Strength, By Price Range, By Region, And Segment Forecasts, 2023 - 2030

Research Methodology

A three-pronged approach was followed for deducing the nicotine pouches market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for nicotine pouches market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of nicotine pouches market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Nicotine Pouches Market Categorization:

The nicotine pouches market was categorized into six segments, namely product (Tobacco-derived, Synthetic Nicotine), flavor (Original/Unflavored, Flavored), strength (Light, Normal, Strong, Extra strong), price range (Economy (Less than USD 3), Mid-range (USD 3 - 5), Premium (More than USD 5)), distribution channel (Offline, Online), and region (North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa).

Segment Market Methodology:

The nicotine pouches market was segmented into product, flavor, strength, price range, distribution channel, and region. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The nicotine pouches market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into fifteen countries, namely, the U.S.; Canada; Mexico; Germany; the UK; France; Scandinavia; Italy; Spain; India; Indonesia; China; Brazil; Saudi Arabia; UAE.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Nicotine pouches market companies & financials:

The nicotine pouches market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• British American Tobacco - The company is engaged in manufacturing a wide range of tobacco, cigarettes, and other nicotine products. British American Tobacco has diversified its business segments into cigarettes and potentially reduced-risk products. It offers products through brand names such as Dunhill, Lucky Strike, Kent, Rothmans, and Pall Mall. The company also sells fine-cut tobacco roll-your-own or make-your-own tobacco. The company’s Fiedler & Lundgren business sells snus in Norway and Sweden through its Granit and Mocca brands. In addition, the company’s oral product brands-Camel Snus, Grizzly, Velo, and Kodiak-are subjected to FDA regulations. The company owns strategic business units across several continents, including North America, South America, Europe, North Africa, sub-Saharan Africa, Asia Pacific, and the Middle East.

• Altria Group, Inc. - Altria Group, Inc. is a company that manufactures, markets, and distributes tobacco products such as cigarettes and other tobacco-related products worldwide. Altria’s wholly-owned subsidiaries include Philip Morris USA, U.S. Smokeless Tobacco Co., John Middleton, Nat Sherman, Ste. Michelle Wine Estates, and Philip Morris Capital Corp. U.S. Smokeless Tobacco Co., Inc. offers a wide range of smokeless tobacco products through several brands such as Copenhagen and Shoal. The company operates through three segments-smokeable products, smokeless products, and wine. These products are sold under brand names such as Marlboro, Black & Mild, Husky, and Red Seal. Marlboro is the most popular brand in the smokeable segment while Copenhagen is the most popular brand in the smokeless segment.

• Swedish Match AB - The company operates as a manufacturer and distributor of various products, including snus, nicotine pouches without tobacco, moist snuff, pouch products (non-nicotine and non-tobacco), cigars, tobacco bits, chew bags, chewing tobacco, matches, and lighters. Production is located in seven countries, with the majority of the Group sales coming from the U.S. and Scandinavia. The company holds the number two position in the U.S. market for mass-market cigars. The company is also a leading manufacturer and distributor of matches and lighters with a strong brand portfolio across the globe.

• Nicopods ehf. - Nicopods ehf. focuses on creating superior products from high-quality ingredients to help consumers decrease or quit using harmful tobacco products with a less damaging nicotine substitute. It offers nicotine pouches in three different concentrations-2-point pouches contain 8 mg/g, 4-point pouches contain 18 mg/g, and 5-point pouches contain 24 mg/g. Nicopods owns and runs the company Icepouch.is. The ICE nicotine pouches are available in a variety of flavors to suit every user's personal preference. ICE nicotine pouches contain nicotine and a filler, salt, Xylitol, acidity regulator, flavorings, emulsifier, preservative, and gelling agent. The company’s products are distributed through wholesalers or directly to consumers via the company website.

• Triumph Tobacco Alternatives LLC - The company manufactures, markets, and distributes non-tobacco chew pouches available in both nicotine and nicotine-free variants. The company offers four flavors and three strengths such as the same nicotine, less nicotine, or zero nicotine. It also offers a nicotine and tobacco-free chew that contains caffeine. The ingredients are all food grade except nicotine and use pure nicotine extracted from tobacco. Triumph chew is made to resemble the texture, burn, and feeling of dip tobacco. Triumph Rush is available in Mint, Wintergreen, Cinnamon, and Classic, and will soon offer Vanilla Bourbon.

• Japan Tobacco International - Japan Tobacco International was established in 1999 and is headquartered in Geneva, Switzerland. It is a member of the Japan Tobacco Group of Companies and is involved in the manufacturing of tobacco products. The company’s product portfolio includes cigarettes, snus, cigars, rolling tobacco, and reduced-risk products including nicotine pouches. Japan Tobacco International has 9 flagship brands- Winston, Camel, LD, Mevius, Benson & Hedges, Glamour, Sobranie, Silk Cut, and Natural American Spirit. The company’s JTI Sweden and Nordic Snus subsidiaries produce quality snus. The snus factory of the company is located in Vårgårda, Sweden. Japan Tobacco International sells its Nordic Spirit brand of nicotine pouches in Europe.

• Swisher - It is an international lifestyle brand for adult consumers mainly known for its Swisher Sweets Cigars. The company also has a global manufacturing presence in Santiago, Dominican Republic; Esteli, Nicaragua; and Wheeling, West Virginia. The company operates in various product categories including smokeless tobacco products, premium cigars, and even non-tobacco brands among others. The company sells its nicotine pouches through the Rogue brand, which offers a flexible alternative for adult consumers who are looking for a modern, suitable way to enjoy nicotine.

• Skruf Snus AB - Skruf is one the largest snuff manufacturers in the Nordics with over 300 employees in their operations. The company provides its products through various brand names including Knox, Smålands Brukssnus and ZONE X. Skruf Snus is part of the global group, Imperial Brands. The company offers its products in more than 20 different tastes and variants. Cranberries, mint, and white and loose ingredients. Knox and Smlands are two brands that the company offers in its product line.

• Tobacco Concept Factory - Tobacco Concept Factory (TCF) is a Poland-based company that started in 2003. In May 2020, the company introduced Totem Fresh Mint flavoring cards with an excellent quality mint flavor. The company works together with Polish and international retail chains, domestic wholesalers, and specialist stores dealing in the distribution of tobacco products, liquids, e-cigarettes nicotine pouches, and other vaping accessories. The company also has its laboratory where private label products are produced.

• Philip Morris International - It is one of the leading international tobacco companies, which is involved in the manufacturing and marketing of cigarettes, smoke-free products, associated devices & accessories, and other nicotinecontained products. The company offers smoke-free products such as IQOS, TEEPS, STEEM, and E-vapor products. PMI's key brands include Merit, Marlboro, Parliament, Virginia S., Chesterfield, Bond Street, Muratti, Next, Philip Morris, Sampoerna, Red & White, Dji Sam Soe, Fortune, Champion, Optima, Apollo-Soyuz, Morven Gold, Boston, Belmont, Number 7, Delicados, Petra Assos, and U Mild. The company operated and owned 44 manufacturing facilities and maintained contract manufacturing relationships with 26 third-party manufacturers across 23 markets.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Nicotine Pouches Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2022, historic information from 2017 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Nicotine Pouches Market Report Assumptions:

• The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.