VB-31 Jan 2024
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january 26 2024 9
he nicotine pouch market in the
UK has been growing at a very fast
rate, and these products have gained
popularity as an alternative to traditional
tobacco products. The category is worth
£4.8 million a month, according to the sales
figures for March 2023 by market research
firm Circana, equating to an annual figure
of approximately £58 million.
A key trend within the nicotine pouch
category is the continued demand for higher
nicotine strengths. Circana data shows that
over three fourths (75.1 per cent) of nicotine
pouch sales in traditional retail in the UK
are from the Strong or Extra Strong varieties,
and Bruce Terry, portfolio brand manager at
JTI UK, which owns the leading brand in the
category, Nordic Spirit, confirms this.
“Over recent years, we have noticed
an increasing demand for higher strength
nicotine pouches, with existing adult smok-
ers in the UK market favouring extra strong
strengths, which hold a 40.7 per cent share
in comparison to regular strength which
holds a 16.6 per cent share,” he notes.
Mint-flavoured products have also
soared to new heights within the category,
with the market currently split 80.1 per
cent mint and 19.4 per cent fruit [Circana,
March 2023].
JTI has added a new element to its Nor-
dic Spirit portfolio with Spearmint Strong
in March last year, catering to the growing
demand for higher nicotine concentrations
and menthol products in the category.
“Following key trends in the nicotine
pouch market, the new launch taps into
the demand for extra-strong and strong
strengths, while spearmint also offers
retailers another menthol offering. With the
category in clear growth and now worth
£58 million a year, there is a big opportu-
nity for retailers to build on the success in
the market and grow with Nordic Spirit,”
Terry adds.
Regulatory status
Nicotine pouches are not regulated under
the Tobacco and Related Products Regu-
lations 2016 but by the General Product
Safety Regulations 2005. However, the
government’s recent consultation on meas-
ures to tackle the issues presented by both
The future of nicotine delivery
The future of nicotine delivery
Nic pouches have enjoyed massive popularity – they
are functional and discreet. But that means the
government eyes the products with suspicion
smoking and vaping included a proposal
to regulate nicotine pouches in the same
manner as vaping products.
It appears t consultation, which con-
cluded in December, has taken a very
hard line on vaping, proposing a ban on
disposable vapes and severe restrictions on
vaping flavours, with one suggestion being
to only allow tobacco-flavoured vapes.
Other proposals included mandating
vaping products to be kept behind the
counter, either on display or even hidden
like cigarettes, and also restricting or com-
pletely prohibiting attractive packaging for
vaping products. Proposals go from ban-
ning child-friendly images right up to full
plain packaging the same as cigarettes.
The vape industry and consumers
have cautioned that the proposals would
jeopardise the UK’s successful pathway to
tobacco harm reduction. If the government
implements tighter controls, the impact on
sales can be significant as the proposals
have the potential to limit brand visibility
and consumer awareness, and to hinder
the ease of purchasing nicotine pouches.
In navigating this intricate regulatory
environment, retailers must stay abreast of
changes and ensure compliance with evolv-
ing standards. As far as the manufacturers
are concerned, while regulatory restrictions
pose challenges, they also present oppor-
tunities for innovation and differentiation,
ultimately shaping the future trajectory of
the nicotine pouch market.
Unleashing flavourful success
Bruce Terry, portfolio brand manager at JTI
UK, shares strategies for skyrocketing
nicotine pouch sales
Follow the Perfect Store Framework: In 2022, JTI launched its
Perfect Store Framework – a ‘how to’ guide on generating product
awareness in store, enticing new customers, and boosting sales in the
nicotine pouch category. Retailers can find out more by visiting JTI
Advance or by speaking to their JTI Business Adviser.
Establish clear product visibility: Give the category a clear ‘home’ by displaying nicotine
pouches on a back wall solution with heated tobacco and vaping devices, so the customer has
a visible choice of nicotine products based on their preferences.
Attract customers with an eye-catching counter display: For nicotine pouches, JTI offers PoS
category solutions to suit stores of all shapes and sizes that retailers can take advantage of to
boost their pouch sales, including countertop display solutions.
Ensure consistent product availability: As well as stocking a full range of products, it is
important that retailers always maintain good stock levels, so that customers have a choice
available to them. Retailers should also observe seasonal trends and busy periods. For
example, keep your nicotine pouch range particularly strong in the summer months when
demand is highest. In addition, clear signposting aids consumer navigation of the category.
Stay ahead with category education: As the nicotine pouch category is rapidly growing,
consumers will require guidance around the category, including what a pouch is, how to use
it, and which strengths are available. Ensure your staff are category experts by working with
JTI’s local Business Advisers to leverage all opportunities both inside and outside the store,
thus assisting customers in their decision-making process and ensuring your stock is aligned to
current trends. JTI Advance also has a range of training modules and sales guidance that can
help retailers looking for further information on pouches.
Nicotine Pouches
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