Nicotine Pouches in the UK: 2024 Market Insights and Trends

The global nicotine pouch market has been experiencing explosive growth, and the UK is no exception. According to industry forecasts, the global nicotine pouch market was valued at approximately ¥29.8 billion in 2023 and is expected to surge to ¥201.4 billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 31% from 2024 to 2030. But what's driving this trend in the UK, a key market for nicotine alternatives? Let's dive into the latest data and trends.

A Look at the UK’s Growing Nicotine Pouch Market

The UK has seen a steady rise in the adoption of nicotine pouches, a smokeless, tobacco-free alternative to traditional smoking. This growth comes amid increasing awareness of the health risks linked to smoking, including a staggering 75,000 deaths per year due to smoking-related diseases, as reported by the NHS in 2019. Almost half (42%) of customers at major nicotine pouch retailers like Haypp and Northerners are former smokers who have switched to products like nicotine pouches, snus, or other smokeless alternatives.

Interestingly, 56% of these users explicitly state that they began using nicotine pouches as a way to quit smoking. The shift is particularly noticeable among young Brits, with the 25-34 age group being the largest demographic of users.

Health Benefits and Consumer Preferences

One of the major driving factors behind the surge in nicotine pouch usage in the UK is the growing concern about health. The World Health Organization (WHO) reports that tobacco products are responsible for 8 million deaths annually, with tobacco-related cancers contributing to 25% of all cancer deaths globally. In comparison, nicotine pouches are seen as a less harmful option, and many users are making the switch to reduce their health risks.

Post-COVID, health concerns became even more pronounced, with people becoming increasingly conscious of the potential dangers of traditional smoking. This has contributed to the appeal of nicotine pouches, which are perceived as a healthier alternative to smoking. A risk assessment chart (shown in one of the reports) ranks nicotine pouches at 3.7 on a scale from 1 (harmless) to 10 (highly dangerous). In contrast, smoking traditional cigarettes scored a dangerous 8.8, and even vapes and heated tobacco products like IQOS ranked higher in risk.

Cost, Flavors, and Nicotine Strength: What UK Consumers Want

When it comes to purchasing nicotine pouches, price, flavor, and nicotine content are the most important factors for UK consumers. A significant 78% of users consider price to be one of the top three deciding factors when choosing a product, up from 70% the previous year. Flavor has slightly decreased in importance, dropping from 77% to 72%. However, nicotine content has become more critical, with 75% of users now factoring it into their decision, up from 69% last year.

For those switching from traditional cigarettes or vapes, the benefits are clear. An overwhelming 95% of ex-smokers report feeling better after switching to nicotine pouches, with 65% saying they felt “a lot better,” and 30% saying they felt “better.” The shift to nicotine pouches has not only led to improvements in health but also significant savings, with less frequent sick days and reduced medical costs.

Why Are Brits Turning to Nicotine Pouches?

So why are so many Brits embracing nicotine pouches? For many, it's a combination of health benefits, price, and convenience. Nicotine pouches are discrete, easy to use, and offer a range of flavors and strengths, making them an appealing option for a wide range of consumers. In addition, the fact that nicotine pouches don’t contain tobacco is a major selling point for many Brits looking to quit smoking.

Reports from Haypp and Northerners confirm that the nicotine pouch market in the UK has seen rapid expansion since the product's introduction in 2019. Sales increased by 82% in 2023 alone. The average consumer in the UK uses around three cans of nicotine pouches a week, with the highest usage rates reported among men aged 25-34. Interestingly, Northern Ireland has the highest average usage, with consumers there using 3.5 cans per week.

The Rise of E-Commerce in Nicotine Pouch Sales

E-commerce has been a game-changer for the nicotine pouch market, especially in the UK. Online sales now account for 85% of all nicotine pouch sales, with older users—particularly those over 65—being the most tech-savvy and making the majority of their purchases online. The growing trend of online shopping is expected to continue, with 30% of users planning to buy more nicotine pouches online in the next year, up from just 13% last year.

The convenience of online shopping has made it easier for consumers to find the perfect product for their needs, whether that’s a specific flavor, nicotine strength, or brand. With so many options available, it’s no surprise that over one-third (36%) of users switch between products, enjoying the variety of flavors and strengths available in the market.

Changing Demographics: Men, Women, and Younger Consumers

While men still dominate the nicotine pouch market, the gender gap is closing. Women’s usage of nicotine pouches has increased by 98% year-over-year, nearly doubling their share of the market. In 2023, women accounted for 23% of all nicotine pouch consumers in the UK, and this number is expected to grow in the coming years.

The younger generation (18-24-year-olds) is also fueling the growth of nicotine pouch sales, with over half (54%) of them planning to increase their online nicotine pouch purchases in the next year. These younger consumers are more health-conscious and are looking for products that offer a safer alternative to traditional smoking.

Top Brands and Flavors on the Rise

When it comes to brands, Velo is leading the pack in terms of consumer loyalty and sales. According to Haypp.uk and Northerner.com, Velo has overtaken Nordic Spirit to become the UK’s most popular nicotine pouch brand. Together with Nordic Spirit and Loop, these three brands account for nearly half (45%) of all nicotine pouch sales.

In terms of product preferences, nicotine pouches come in a variety of flavors and nicotine strengths, with "Extra Strong" pouches leading the market. Around 42% of users prefer ultra-strong pouches, followed by 26% who opt for "regular" strength, and 23% who go for "strong" pouches. These pouches are also available in different sizes, with "slim" pouches making up the majority of sales.

Regional Insights: Consumer Preferences Across the UK

From England to Scotland, regional preferences for nicotine pouches vary significantly. In the East Midlands, for example, 42% of consumers plan to buy more nicotine pouches online in the next year, above the national average of 30%. In Greater London, consumers tend to stick to one type of nicotine pouch, with 47% of users reporting they only buy a single product, compared to 36% nationally.

Northern Ireland stands out as a hotspot for heavy usage, with 32% of users consuming five or more pouches per week, and Scotland is notable for its price-conscious shoppers, with 85% opting for online purchases to take advantage of lower prices.

The Future of the UK Nicotine Pouch Market

The UK’s nicotine pouch market is poised for continued growth, driven by health-conscious consumers, an increasing shift to online shopping, and a wide range of flavors and strengths to choose from. As more people move away from traditional smoking and towards smokeless alternatives, nicotine pouches are expected to play an even bigger role in the UK’s tobacco landscape.

In conclusion, the nicotine pouch market in the UK is rapidly evolving. With rising health concerns, changing demographics, and the ongoing shift to e-commerce, it’s clear that nicotine pouches are becoming a go-to alternative for many seeking a less harmful way to consume nicotine. Whether it’s for the health benefits, the flavors, or the convenience, the future of nicotine pouches in the UK looks bright.

If you want to learn more about nicotine alternatives like nicotine coffee pouches and nicotine gum, be sure to check out our other blog posts. We’ve got the latest insights and helpful guides to support you on your journey toward a smoke-free lifestyle! 😊🍬