VB-31 Jan 2024

Welcome to interactive presentation, created with Publuu. Enjoy the reading!


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

Vape Business Section1.indd 9

Vape Business Section1.indd 9

1/18/2024 3:03:10 PM

1/18/2024 3:03:10 PM

1 2 3 4 5 6 7 8 9 10