The Oral Tobacco & Nicotine Pouch Report 2021

 

Introduction

 

Nicotine pouches are a new and fast-growing form of tobacco leaf-free oral nicotine. In this report, we take a closer look at oral nicotine—mainly how nicotine pouches are used, how our American nicotine habits differ to those in Europe, and what trends are starting to emerge 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 pouch usage.

 

 

About Nicotine Pouches & Swedish Snus

 

The traditional snus with tobacco has Swedish origins and has been on the American market for many years. However, the tobacco leaf-free snus, also called nicotine pouches or all white, has increased most in prevalence in recent years. Nicotine pouches were launched in the US in 2015. Today, these tobacco leaf-free alternatives make up most of the oral nicotine sold in the country.

 

In Sweden, snus and nicotine pouch use has led to a reduction in the use of cigarettes—especially when compared to the smoking rates of other countries. The increase in nicotine pouch use in the US could potentially do the same here, offering adult nicotine users a reduced risk alternative to traditional combustible tobacco.

 

 

About the Report

 

The Oral Tobacco & Nicotine Pouch Report 2021 is based on a consumer survey and sales data from Northerner.com and Nicokick.com. The survey was conducted in February, 2022 and is based on responses from a random sample of customers from these websites (a total of 1,407 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 snus." "Regular snus users" refers to those who state they use an oral nicotine product 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 leaf-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.

 

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

 

Our survey shows the most common reason to start using nicotine pouches or tobacco snus is wanting to quit smoking. Over 4 out of 10 (43%) state this as the single most important reason they started with oral nicotine. Among women, the figure is closer to 6 out of 10 (58%). Of the daily users of nicotine portions, 44% state that attempts to quit smoking were the most vital contributing reason, while the corresponding figure for tobacco snus is 30%.

 

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 note several advantages of nicotine pouches compared to other nicotine products. Many claim that the product feels less harmful to their health and that their use does not affect other people around them in the same way that cigarettes or vapes do.

 

Unlike in Sweden where traditional tobacco taste reigns, different mint flavors are already the most popular in the US, followed by citrus and coffee flavored pouches.

 

Quick Facts: Oral Nicotine in the Year 2021

• Purchases of nicotine pouches increase sharply - up 30 %, compared with 2020.
• More than four out of ten - 42 % - 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 consumer's main reason 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 leaf-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% of Northerner's orders went to men in 2021, while women accounted for the remaining 13%. However, the rate of increase is higher among women, who bought 35% more cans in 2021 compared with 2020. The corresponding rate of growth for men was 27%.

 

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. Female habits are very similar to their male counterparts; stating that their favorite taste is wintergreen. The tobacco leaf-free nicotine portions are favored with a variety of flavors, where traditional tobacco taste makes up just under 8%.

 

How are Pouches Consumed?

The average user of nicotine pouches consumes about 4 cans a week. The most frequent users of nicotine pouches (3 cans a week or more) are in the southern part of United States (73%) and in the north-eastern United States (72%) while the western parts (64%) are below the national average. The largest proportion of heavy users is found between the ages of 45 and 54.

 

Regarding online purchases, customers buy an average of 21 cans per purchase, which means that the nicotine bags last for about a month. Roughly half of nicotine pouch users (47%) stick to one and the same product (can) over time, while the rest switch between 2 or more products. The most common reason to change product regularly is that you simply like to test on new varieties and brands with 45% of people saying so. E-commerce has increased this opportunity as the range is larger and it is easier to find new varieties that suit individual taste and strength preferences, as well as offering different pouch formats.

 

 

The average snus/nicotine pouch user...

• Uses 4 cans a week
• Orders 21 cans per purchase online
• Likes to test new varieties and brands
• Has mint as their favorite flavor

Why do People Use Nicotine Pouches?

 

By far the most common reason for starting to use oral nicotine is that you want to stop smoking. 43% of customers explicitly state smoking cessation as the reason why they started with oral nicotine. Among those who use nicotine pouches, 36% state that they started with this as a way to quit smoking cigarettes and almost half (48%) state that it was a way to quit tobacco in general (e.g. snuff, dip/chew). Of the daily users of nicotine pouches, 44% state that attempts to quit smoking were the strongest contributing reason, while the corresponding figure for tobacco snus is 30%.

 

 

 

 

Among those who have stopped smoking in favor of nicotine pouches, 93% 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.

 

In terms of the 3 most important factors when choosing a product, 8 out of 10 people say taste, 7 out of 10 say price and 6 out of 10 say nicotine strength. These factors don't differ significantly across the country and their relative weight reflects a similar pattern to European markets.

 

What Type of Nicotine Pouches do Americans Use?

In terms of brands, ZYN, On! and Rogue are the three most common. New brands on the top 10 list in 2021 include 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% of oral nicotine consumption 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 7-9% 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 larger extent than women. It is also clear that younger adults prefer mint while older people opt more for traditional tastes.

 

In terms of nicotine strength, the most common choice among American nicotine users is Regular (7-9mg of nicotine per pouch). Less Intense (2-3mg per pouch) was the second most common strength category in 2021. However, Extra Strong products (10-15mg per pouch) 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% in the US. On the other hand, Slim showed higher growth in 2021, with an increase of 46%.

 

 

 

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%, which means that nicotine pouches account for 87% 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%). Users also think about how other people are affected. More than two-thirds (68%) 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%) specifically emphasize that the user does not affect other people. More than 4 out of 10 (42%) also think nicotine pouches are better than other nicotine products.

 

 

The perception of 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 when compared to 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 10-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% of those who have switched to oral nicotine—the shift means increased wellbeing. 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 COVID-19 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. 4 out of 10 buy all their oral nicotine online. Among these buyers who only shop online, 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, almost half (49%) say that they buy all their nicotine online. An important reason is the pandemic, during which the elderly have been urged to stay at home and refrain from social contact. If you look ahead, however, it is actually 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 $5.80 per can. The corresponding dollar value is 30% higher in Germany, 56% higher in the UK, and 73% 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 are for Adults Only...

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 9 out of 10 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 minimized. 

 

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 getting in the hands of minors.