The UK nicotine pouch market has reached just under £250m and is growing by 46%, according to the latest figures from market analyst Circana. While traditional tobacco is in long-term decline and vape sales are starting to level out, nicotine pouches are on the rise.
Although most sales still take place in the big supermarkets, they are growing fastest in convenience. Prianka Jhingan, head of marketing at Scandinavian Tobacco Group UK, said: “Pouch volume sales have grown by 57% in the last 12 months in convenience stores, with our own XQS selling particularly well.”
Drivers of growth
Jhingan added: “Following the disposable vape ban last summer, we know both tobacco smokers and vapers are now entering the nicotine pouch category in growing numbers, with sales increasing accordingly. But while the disposable vape ban has clearly had a positive impact on pouch sales, the main factor driving the positive trajectory of the category is because a growing number of nicotine users are now discovering what a great option pouches are for them, due to their discreet and portable nature and the great flavours available.”
Andrew Malm, UK market manager for Imperial Brands, which produces the Zone range, agreed. “Nicotine pouches are proving popular with existing nicotine users for providing a discreet, effective, and affordable form of nicotine delivery, meaning the category has significant growth potential in the UK,” he said. “We anticipate continued growth due to the smoke-free convenience these products offer and the ever-evolving range of flavour options, which appeal to a range of demographics.”
Popular strengths and flavours
According to Scandinavian Tobacco Group, pouches are consumed by a range of ages and demographics, but in general users are probably aged from 25 to 40. Imperial’s latest figures show that products with a strength of between 9.1mg and 12mg are the most popular, accounting for nearly 41% of all sales in the last 12 months, while mint-flavoured products are by far the most popular, making up 64.8% of sales by volume, followed by berries (14.3%) and tropical (10%).
Jhingan said: “Talking to your customers is always important and particularly so with education on newer products. Having said that, the growth of nicotine pouches has been so rapid that they are quickly becoming familiar to many nicotine users as their preferred option, due to their discreet and portable nature and great flavours.” She added that retailers or staff needing training should talk to visiting sales reps, noting that STG UK develops its sales force to become nicotine experts who can support and educate convenience retailers.
Brand expansions
Both manufacturers say their brands are performing well in this expanding market. Launched in the UK last year, Zone comes in five flavour options: Sweet Mint, Cool Mint, Watermelon Ice, Juicy Peach and Berry Blast. Each pack contains 20 nicotine pouches in a slim format with an RRP of £6.50. The line-up has recently been extended with the addition of a 17mg Cool Mint variant.
XQS launched into the UK in May 2024. Jhingan said: “The brand is recognised for its long-lasting flavours and smaller pouch size, as well as the fact that it offers consumers great value at £5.50, which is usually £1 cheaper than other major brands in the market. Within the XQS portfolio, our current best-sellers are the Tropical and Black Cherry flavours, which were two of the earlier flavours to launch, while other particularly popular ones would be Arctic Freeze and Strawberry Kiwi.”
Following a brand refresh earlier in the year, XQS has recently added a mint range to its portfolio. The four new SKUs comprise The Spearmint, The Peppermint and The Menthol (in two different strengths), all available with an RRP of £5.50.
Future outlook
Both STG and Imperial are convinced that the future is bright. Jhingan said: “There’s no doubt the nicotine pouch category will only keep growing in both size and significance, so retailers need to ensure they are stocking the right brands to maximise sales and profits. For any retailers new to the pouch category, it’s sensible to start with a range including a mixture of well-established and newer brands, along with a range of flavours and strengths. While fruit flavours should certainly be included in any retailer’s range, it’s worth noting that mint flavours account for more than 75% of all sales, so these are the most important to stock.”
Malm added: “It’s an area with enormous potential for retailers, with category volume predicted to grow by a massive 234% over the next five years, based on increased consumer understanding of the growing range of flavour and strength options. However, retailer education is vital for continued growth in sales, because trained staff will ensure strict age verification and accurately explain product use, flavour choices, and strength levels compared with other nicotine products – building customer trust, loyalty and repeat business. Stocking a clearly segmented range will be key as adult consumer preferences continue to shift toward smoke-free alternatives and regulatory scrutiny increases.”
