The Oral Tobacco and Nicotine Pouch Report 2021

 

Introduction

 

Nicotine pouches are a new and fast-growing form of tobacco-free oral nicotine. Today, nicotine is used orally throughout the United States, and users are of different backgrounds and ages, with varying forces of driving and taste preferences. In this report, we take a closer look at oral nicotine - mainly how nicotine pouches are used, how American nicotine habits differ from European’s, and what trends exist and prevail in the use of oral nicotine.

 

The Snus Report 2021 has been produced by Nicokick, in collaboration with Northerner US. The purpose of the report is to provide an easily accessible picture of consumer behavior and current trends in the US market for nicotine pouches.

 

 

About Nicotine Pouches and Swedish Snus

 

The traditional snus with tobacco has Swedish origins and has been on the American market for many years. However, the tobacco-free snus, also called nicotine pouches or all white, has increased most in prevalence in recent years. The nicotine pouches were launched in the USA in 2015. Today, this healthier, tobacco-free alternative makes up most of the oral nicotine sold and used in the country.

 

In Sweden, the home country of snus, it’s a widespread phenomenon that, among other things, has led to a reduction in the use of cigarettes and to the fact that the incidence of smoking is lower than in most comparable countries. The use of nicotine pouches in the US can, like in Sweden and Norway, contribute to reduced smoking and partially replace tobacco use with a less harmful nicotine product.

 

 

About the Report

 

The basis for The Oral Tobacco & Nicotine Pouch Report 2021 is a consumer survey and sales data from Northerner.com and NicoKick.com. The consumer survey was conducted in February 2022 and is based on responses from a random sample of customers at the same sites, a total of 1407 responses from users of oral nicotine. The sales data consists of purchase statistics from 80,966 customers.

 

When referring to users of oral nicotine in the report, it refers to the customers who in the survey state that they use snus or nicotine pouches - where the latter can also be referred to as nicotine bags, nicotine portions or "all white". "Regular snus users" refers to those who state that they use oral nicotine at least once a week.

 

Summary

 

The use of oral nicotine goes back a long way in American history, but the forms of oral nicotine and the purchase of these products are changing. The current development is characterized by the progress of tobacco-free nicotine pouches, new buying behaviors through e-commerce, and an increased focus on nicotine portions as a smoking cessation strategy and less harmful alternatives to cigarettes.

 

The nicotine pouches were launched in the US in 2015 and have shown steady growth. In 2021, the number of cans sold increased by 30 percent, which means that nicotine pouches account for 87 percent of the cans sold on Northerner.com and NicoKick.com. The remaining part consists of snus with tobacco and the nicotine-free range.

 

The most common reason to start using nicotine pouches or tobacco snus is that you want to quit smoking. Over four out of ten (43 percent) state this as the single most important reason they started with oral nicotine. Among women, the figure is closer to six out of ten (58 percent). Of the daily users of nicotine portions, 44 percent state that attempts to quit smoking were the most vital contributing reason, while the corresponding figure for tobacco snus is 30 percent.

 

Oral nicotine has entered a new era where growth is occurring online. E-commerce enables many more consumer alternatives, better transparency and consumer information, convenient deliveries, and an attractive price picture. Those who today shop online put a large proportion of their purchases online, and many plan to increase the balance even more in the coming year.

 

American users of nicotine pouches state several advantages of nicotine pouches compared to other nicotine products. Many point out as the main advantages that the product feels less harmful to health and that the user does not affect other people.

 

ZYN is still the most popular brand among nicotine pouches in the United States. Unlike in the snus' homeland Sweden, where traditional tobacco taste reigns, different mint flavors are already the most popular in the US, followed by citrus and coffee flavors.

 

Quick Facts – Oral Nicotine in the Year 2021

Purchases of nicotine pouches increase sharply - up 30 percent, compared with 2020.

• - More than four out of ten - 42 percent - actively choose nicotine pouches to quit smoking.
• - Many snus users switch between different products. The most common reason is that they are curious and want to try various alternatives, something that is made possible online where the range is more extensive, It is easier to find new flavors and varieties that suit the individual.
• - Mint flavor is the most popular flavoring on nicotine servings. Fastest growth shows fruit flavors.
• - Products with high strength (Ultra strong) grow slightly faster than products with lower nicotine strength.
• - Mini is by far the most popular format in the US, but the Large format grew fastest in 2021.
• - The largest brand is ZYN, which accounts for 36 percent of all oral nicotine sold. The most popular dose is ZYN Wintergreen 6mg, All White Mini.
• - The consumer's purpose for using nicotine pouches differs in different parts of the country. In New York, for example, people tend to have started using nicotine pouches as a way to quit smoking cigarettes, and in Texas, as a way to replace other types of tobacco.
• - Compared to European markets, many users of nicotine pouches in the United States come from previous use of chewing tobacco. However, transitions from cigarettes and vaping / e-cigarettes are also very common.
• - Consumers associate nicotine pouches with a significantly lower risk then of alternative nicotine products, and almost everyone who switches from more harmful products reports that they feel better after the shift. They also state that nicotine pouches are more socially accepted than alternatives, which contributes to a reduced social stigma.

 

The American Snus Market - a Snapshot

 

Tobacco-free nicotine bags have quickly become a habit in the United States. But who are the users, how do they use nicotine bags, and why?

 

Who Are the Users of Nicotine Pouches?

Users of nicotine pouches, or nicotine bags, are found throughout the country, in both large cities and sparsely populated areas, from the west to the east. Consumers are found in a wide age range in adulthood. It is mainly men who use nicotine bags: 87 percent of Northerner's orders went to men in 2021, while women accounted for the remaining 13 percent. However, the rate of increase is higher among women, who bought 35 percent more cans in 2021 compared with 2020. The corresponding rate of growth for men was 27 percent.

 

A typical user of nicotine pouches is a man in his 40s who buys two-thirds of his nicotine products online and has mint or wintergreen as his favorite taste. The women's habits are very similar to men’s; the favorite taste is wintergreen. The tobacco-free nicotine portions are flavored with a variety of flavors, where traditional tobacco taste makes up just under eight percent.

 

How are Pouches Consumed?

The average user of nicotine pouches consumes about four cans a week. The most frequent users of nicotine pouches (three cans a week or more) are in the southern part of United States (73 percent) and in the north-eastern United States (72 percent) while the western parts (64 percent) are below the national average. The largest proportion of large users is found between the ages of 45 and 54.

 

Regarding online purchases, you buy an average of 21 cans per purchase, which means that the nicotine bags last for about a month. Half of nicotine pouch users (47 percent) stick to one and the same product (can) over time, while the rest switch between two or more products. The most common reason (45 percent) to change product regularly is that you simply like to test on new varieties and brands. E-commerce has increased this opportunity as the range is larger and it is easy to find new varieties that suit the individual's taste preferences or other wishes.

 

 

The average snus and nicotine pouch user ...

• - Uses 4 cans a week
• - Order 21 cans per purchase online
• - Likes to test new varieties and brands
• - Favorite flavor is mint

 

Why do People Use Nicotine Pouches?

 

The by far the most common reason for starting to use oral nicotine is that you want to stop smoking, 43 percent state smoking cessation as an explicit reason why they started with oral nicotine. Among those who use nicotine pouches, 36 percent state that they started with this as a way to quit smoking cigarettes and almost half (48 percent) state that it was a way to quit tobacco, in addition to cigarettes. Of the daily users of nicotine pouches, 44 percent state that attempts to quit smoking were the strongest contributing reason, while the corresponding figure for tobacco snus is 30 percent.

 

 

 

 

Among those who have stopped smoking in favor of nicotine pouches, 93 percent answer that they feel better or much better after the change. There are some regional differences. In New York, for example, users of nicotine pouches often started as a way to quit smoking, while in Texas it is mainly a way to replace other types of tobacco.

 

Eight out of ten (78 percent) state taste, seven out of ten price (71 percent) and six out of ten (62 percent) nicotine strength as one of the three most important factors when choosing a product. These factors do not differ significantly within the country and their relative weight is also similar to the pattern in European markets.

 

What Type of Nicotine Pouches do Americans Use?

The best-selling nicotine pouch product in 2021 was ZYN Wintergreen 6mg, All White Mini, a product that kept the lead from 2020. In terms of brands, ZYN, On! and Rogue are the three most common. New brands on the top 10 list in 2021 are FRE, NIC-S and NIIN.

 

Mint is by far the most common flavor. Mint flavors come in different forms, but if you add the variants mint, wintergreen, spearmint, and peppermint, these accounted for a total of 58 percent of the oral nicotine in 2021. In California and Texas, wintergreen is the favorite variant while New Yorkers prefer classic mint flavor. After the various forms of mint comes citrus, coffee, and cinnamon flavors, which corresponded to between seven and nine percent each of sales in 2021.

 

Among the less frequently used flavors, coffee is more popular with women compared to men. Men instead prefer traditional tobacco taste to a slightly greater extent than women. It is also clear that young people prefer mint while older people are overrepresented among those who like traditional taste.

 

In terms of nicotine strength, the most common choice among American nicotine users is a can of normal strength. The weaker strength of less intense was the second most common strength in 2021. However, products with really high nicotine strength (extra strong) grew the fastest during the year.

 

Mini is by far the most popular format among both men and women, followed by slim. Mini has a market share of as much as 60 percent in the US. On the other hand, slim showed higher growth in 2021, with an increase of 46 percent.

 

 

 

The US Market from an International Perspective

 

Nicotine Pouches as an Alternative to Other Nicotine Products

 

Sales of nicotine pouches are growing strongly in both the United States and European markets. The nicotine pouches have emerged as substitutes for the smoking of cigarettes but also for other nicotine products, such as vape/e-cigarettes, chewing tobacco, smoking tobacco, and tobacco-containing snus.

 

Among customers on Northerner.com who today do not use nicotine portions, about two-thirds have heard of the product type. This is a slightly lower proportion than in Europe.

 

 

The nicotine pouches were launched in the US in 2015 and have shown steady growth. In 2021, the number of cans sold increased by 30 percent, which means that nicotine pouches account for 87 percent of the cans sold on Northerner.com. The remaining part consists of snus with tobacco and the nicotine-free product range.

 

The share of nicotine pouches in oral nicotine is significantly higher in the US and young markets in Europe than in Scandinavia. Sweden and Norway have a long tradition of using traditional snus with tobacco.

 

 

 

 

Perceived benefits of nicotine pouches

 

Users of nicotine pouch in the US states several benefits of nicotine pouches compared to other nicotine products. Many point out as the main gain that the product feels less harmful to their health (55 percent). Users also think about how other people are affected. More than two-thirds (68 percent) see it as the main advantage that nicotine pouches are a more convenient form of nicotine use than the alternatives, and more than half (54 percent) specifically emphasize that the user does not affect other people. More than four out of ten (42 percent) also think nicotine pouches are better than other nicotine products.

 

 

The low risk goes hand in hand with social acceptance

 

The risks associated with use are perceived to be significantly lower for nicotine pouches than for alternative forms of nicotine use. The perceived difference in danger is greatest for nicotine pouches vis-à-vis cigarette smoking, but the nicotine pouches' lead is also large against the use of chewing tobacco, smoking tobacco, vape/e-cigarettes, and ordinary snus. Tobacco snus is given twice as high of a number compared to nicotine pouches by American consumers on a ten-point scale of perceived danger. It is worth noting that this discrepancy hardly exists if you ask users in the ‘snus-country’ of Sweden.

 

There is also a clear negative relationship between the perceived risk and the social acceptance of each nicotine product. The higher the perceived risk, the less perceived social acceptance.

 

 

 

 

The road to nicotine pouches looks different in different countries

 

In the markets where nicotine pouches and snus are available for purchase, there are significant differences in terms of users' nicotine backgrounds. It is clear that nicotine pouches have reduced the need for cigarette smoking in all markets. For the vast majority of Americans who have managed to leave cigarettes behind - 93 percent of those who have switched to oral nicotine - the shift means increased well-being. It also entails savings at the societal level, like sick leave and the burden of care is reduced, but above all, it provides increased quality of life for the individual.

 

 

 

Senior consumers lift e-commerce during the pandemic

 

The social distancing and restrictions for physical stores during the Corona pandemic have accelerated the digitalization of trade and lifted e-commerce to new heights. E-commerce with nicotine pouches and snus has also grown rapidly in recent years.

 

Many people who buy nicotine products online make a large proportion of their purchases online. Four out of ten (41 percent) buy all their oral nicotine online. Among these 100 percent online buyers, some over-representation is seen in populous states, such as New York and California, as well as in southern states such as Texas, Alabama, and Georgia.

 

A more time-specific pattern is that older customers have put a significantly larger share of purchases online lately than younger ones. Among senior consumers over the age of 65, half (49 percent) state that they buy all their nicotine online. An important reason is the pandemic, during which the elderly has been urged to stay at home and refrain from social contact. If you look ahead, however, it is instead younger consumers who state that they will increase their online purchases the most.

 

 

 

The wallet sets a limit

 

Logically, there is a pain point for the price of nicotine products where many consumers would cut down on their consumption significantly or stop using their nicotine product altogether. But when is this point reached?

 

The self-reported mean of this threshold in the United States is $ 5.8 per can. The corresponding dollar value is 30 percent higher in Germany, 56 percent higher in the UK, and 73 percent higher in Switzerland.

 

The discrepancy reflects several factors. Both revenues and the general price level and pricing of nicotine products differ between countries. It is clear, however, that there is a large group of users in the United States who have low margins and who would already today has difficulty withstanding significant tax increases.

 

 

 

About Nicokick

Since beginning as a small start-up in 1998, Nicokick has become a leading e-commerce company in the smokeless industry. As users move away from traditional tobacco products toward healthier smokeless alternatives, Nicokick’s sales have continued to grow over the past years. To provide you with the very best, we are constantly seeking out unique products, researching new trends and developments, and exploring expansion options.

 

With warehouses in several countries, and states in the US, Nicokick also prides itself in providing quick and quality service so that you can enjoy your orders as soon as possible. To prove it, we offer fast shipping worldwide. The range consists of a selection of well-known and lesser-known varieties and brands.

 

From modern nicotine pouches to nicotine gums and lozenges, Nickokick has it all. If you’re 21 or older, you can buy your smokeless, tobacco-free products online via Nicokick.com today!

 

Oral Nicotine Products - Snus and Nicotine Pouches - are Products for Adults...

Our responsibility as an e-commerce store with nicotine pouches, snus, and other nicotine products is great. The age limit for purchasing oral nicotine is central.

 

Nicokick is committed to young people not starting to smoke. We know nine out of ten adult smokers started smoking in their teens. If we can keep adolescence free from tobacco use, the risk of young adults starting to smoke later in life is minimal.

 

Nicokick works with authorities, politicians, and organizations to ensure that a national age limit of 21 years is complied with and to prevent products from becoming available to minors