Nicotine Pouches

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As the harms from conventional products have become better understood, and tobacco control measures have been put in place, the cigarette market – from which tobacco companies make most of their profits – has started to shrink. To secure the industry’s longer-term future, transnational tobacco companies (TTCs) have invested in, developed and marketed various newer nicotine and tobacco products, including in low and middle-income countries (LMICs).1

Since the early 2000s TTCs have developed interests in e-cigarettes (also known as electronic delivery systems, or ENDS), heated tobacco products (HTPs), snus and nicotine pouches.  Companies have referred to these types of product as ‘next generation products’ (NGPs) although terminology changes over time.

All of the ‘big four’ TTCs (PMI, BAT, JTI, Imperial Brands) have invested in Swedish-style snus and related products called nicotine pouches, which they have promoted as part of their harm reduction strategies.


Nicotine pouches are similar to snus pouches as they are made to be placed between the lip and gum, and do not require spitting. However, they do not contain tobacco leaf but a form of dehydrated nicotine (with added flavours) and do not need to be kept cold.2 Nicotine is absorbed into the bloodstream via the mucous membranes in the mouth.23 The pouches also generally contain plant fibres, flavourings and sweeteners.3 They are not new products and similar oral pouches with contents other than nicotine have been available in Sweden for many years, regulated as food.3

TTCs have identified opportunities to market these products in countries where there is either an existing market for snus, or conversely in markets where tobacco snus is currently banned.2

Researchers have cautioned that nicotine pouches in particular appeal to youth and non-smokers, as they are sold in a variety of fruit flavours, in attractive packaging, and can be used discreetly (more so than e-cigarettes).24  They can also contain high levels of nicotine where unregulated.4

It appears that nicotine pouches produced by TTCs use synthetic nicotine, and there is some uncertainty as to whether regulators, including the US Food and Drug Administration, will continue to treat them as tobacco products.256 See below for more on regulation.

Diagram of company products and packagingFigure 1: Images of nicotine pouch brands owned by tobacco companies as of 2021. In 2022 PMI acquired Swedish Match (Source: images from company websites)[/caption]

Cigarette Companies Investing in Nicotine Pouches

British American Tobacco

In 2019, BAT introduced nicotine pouches to its portfolio, marketing them as Lyft in the UK and Velo in the US.789 A July 2019 news report suggested that BAT’s nicotine pouches were also on sale in Sweden, Italy and Tanzania.10 BAT started  promoting Lyft /Velo in “emerging markets” in low and middle income countries (see below).

In October 2020, BAT’s subsidiary in Hungary announced that it might move some of its cigarette manufacturing outside the country, and increase the production of nicotine pouches.11

In November 2020, BAT announced that it had acquired US-based nicotine pouch company Dryft Sciences, via its subsidiary Reynolds American, with the pouches to be sold under the Velo brand.12 According to BAT this would give them a combined share in the US nicotine pouches market of around 10%.12 In the US in 2020, BAT’s nicotine pouches were available in three strengths: 2mg, 4mg and 7mg.13

BAT distinguished Epok, Lyft and Velo from traditional snus and allocated them to a new product category, which it called “modern oral products”.7 In November 2019, it announced that it would consolidate its NGPs under fewer brand names, and all its “modern oral” products would be sold as Velo.14 However in 2020, Lyft was still being promoted in Kenya (see below).

Japan Tobacco International

Japan Tobacco International sells its  Nordic Spirit brand of nicotine pouches in Europe.1516 In its 2020 integrated report Japan Tobacco stated that the pouch was sold in nine countries, and that it held 70% of the UK market. It also said that the product was “sustainably produced”.17

Imperial Brands

In May 2018, Imperial Brands launched a version of its snus brand Skruf without tobacco leaf, called Skruf Super White, in Sweden and Norway.18 This product appears to have been rebranded zoneX for the UK market in August 2019.192021

In December 2020, IMB published an article on its Imperial Science website exploring what it described as “The Tobacco-Free Nicotine Pouch Opportunity”.22


In 2019 Altria announced that it was acquiring an 80% share in oral nicotine pouch on! from Swiss tobacco company Burger Sohne.2324 It set up a new subsidiary Helix Innovations, through which it would manufacture and market the product.2324 Altria stated that, as on! was already on sale across the US before August 2016, it did not require pre-market authorisation (PMTA) from the FDA.23 However, by mid-2020 it had submitted 35 PMTAs for on!, it was sold in 40,000 US stores, and Helix was increasing manufacturing capacity.25 According to Altria, by the end of 2020 the number of stores selling on! had nearly doubled.26 According to an investor transcript the product was “attracting female tobacco consumers due to its spitless, white and compact format” and accounted for 30% of this type of oral nicotine product.27

Philip Morris International

At the beginning of 2021, PMI did not have a nicotine pouch product on the market. However, in a presentation to investors in February 2021, the company noted the “attractive economics” of this small, but growing, product category.28 CEO Andre Calantzopoulos said PMI was planning develop a product through a “combination of partnerships and internal development”.29

In May 2021, PMI acquired Danish snus manufacturer AG Snus, which produces nicotine pouches.3031 This acquisition was not widely publicised at the time. For more details see Cigarette Companies investing in Snus.

In July 2021, PMI announced that it had acquired Fertin Pharma, a company specialising in nicotine replacement therapy (NRT) type products.32 At this time, PMI also began referring to gums and nicotine pouches as “modern oral” products, as BAT does.32

In 2022, PMI acquired Swedish Match.33 Swedish Match specialises in snus, and does not sell cigarettes. Its nicotine pouch Zyn has been sold mainly in Sweden and some other European countries, as well as the US (since 2015).34

Other Companies

Swedish Match specialises in snus, and does not sell cigarettes. It sells its nicotine pouch Zyn in Sweden and other European countries, and the US (since 2015).34

Nicotine pouches are also manufactured by independent companies. (There is a list on the Wikipedia page on nicotine pouches. Note that this content has not been verified by TobaccoTactics).

  • For information on TTC interests in tobacco leaf snus, including global market share, see Cigarette Companies Investing in Snus. Market data for nicotine pouches is not yet available.

Altria & BAT Interests in Lexaria Bioscience

Altria and BAT have connections with Canadian company Lexaria Bioscience, relating to its drug delivery technology ‘DehydraTECH’. It was reported that DehydraTECH allows oils, including cannabidiol (CBD), to be dehydrated, mixed with other ingredients and added to food, drinks and creams, enabling faster delivery into the bloodstream.3536 Altria acquired a nearly 17% share of the subsidiary Lexaria Nicotine, with a seat on the board, and funded its research and development (R&D) programme in 2019 to “to evaluate oral nicotine delivery performance”. 37 Altria acquired non-exclusive licence rights to use DehydraTech. In 2020, BAT signed an R&D agreement with Lexaria Bioscience, which excluded the US (given Altria’s relationship with the company).

  • For more information on tobacco company interests in CBD products, see Cannabis

Regulation of Nicotine Pouches

Nicotine pouches are subject to a variety of regulations around the world, depending on how they are defined and classified, and in many cases no regulation is in place.

In Sweden, pouches containing products other than tobacco and nicotine have long been regulated as food items.3 Zonnic oral pouches were registered as an over-the-counter (non-prescription) drug in 2013, and only available from pharmacies and other regulated outlets.38 There are a range of Nicotine Replacement Therapies (NRT) products registered under the same brand name (see below).

A summary of regulation of snus and nicotine pouches (as of April 2020) in Europe, the US, Australia and New Zealand can be found in a Policy Brief produced by The European Centre for International Political Economy.39 (Note: The author Christofer Fjellner is a Swedish former Member of European Parliament (MEP) who opposed the EU ban on snus).

  • Europe – EU: While there is an EU-wide ban on tobacco snus, nicotine pouches are not covered by current tobacco product regulations. This is subject to review in the next revision of the Tobacco Products Directive.39 It is not clear whether the UK will introduce any regulation for nicotine pouches post-Brexit.
  • Europe – Scandinavia: Sweden has an exemption from the EU ban on snus.39 In 2019, the Swedish National Food Administration advised that nicotine pouches should not now be regulated as food, as they were intended to be spat out and the contents were mostly absorbed through the mouth, not the stomach.3 Nicotine pouches are not currently sold legally in Norway, although snus is.39
  • Europe – Germany: BAT removed its nicotine pouches from the market in Germany in 2021. As industry analysts Tobacco Intelligence reported, the German Office of Consumer Protection and Food Safety (BVL) said that these products were not regulated under either the tobacco legislation or as foodstuffs and so could not be legally sold.40
  • USA: Nicotine pouches are regulated by the US Food and Drug Administration (FDA) and subject to age restrictions, a nicotine health warning and pre-market assessment.39 They are freely available to consumers, and sales have been growing fast.34
  • Australia: As with e-cigarettes and heated tobacco products, nicotine pouches are banned from sale, and only available on prescription.39
  • New Zealand: Snus continues to be banned. However, the sale of nicotine pouches is currently permitted, subject to prior approval. The manufacturer has to demonstrate significantly reduced harm compared to smoking, and that the product can help the country achieve its smoke-free goals. 39 In 2020, nicotine pouches were included in a proposed amendment to smoke-free regulation, which is due to come into effect in June 2021, after the analysis of submissions to a public 41 The precise future status of pouches is not yet clear.
  • Canada: As of November 2020, the Canadian government had not authorised their sale, and issued an alert, stating that as nicotine pouches had not been assessed by “safety, efficacy and quality” they might contain high levels of nicotine and be harmful to health.42 New Zealand has required pre-market approval for nicotine pouches since 2018.39
  • New and emerging markets: Although there have been moves to ban nicotine pouches in some newer markets (including Russia)4344 at the time of writing in March 2021, nicotine pouches remain unregulated in most countries.

As researchers from Norway, among others, have pointed out:

“The boundaries between various tobacco and nicotine products are getting less clear, making it possible for the tobacco and nicotine industries to take advantage of the discrepancies in regulation.”4

For detailed, up to date information at country level, see the searchable database on the Tobacco Control Laws website, published by the Campaign for Tobacco Free Kids (CTFK).

For countries that are parties to the WHO Framework Convention on Tobacco Control (FCTC) progress towards implementation of relevant articles, including newer products, is detailed in the FCTC implementation database.45

BAT Promoting Nicotine Pouches in LMICs

BAT began marketing Lyft in Kenya in 2019, and Pakistan in 2020. In 2021, BAT said that it was also test marketing its product in Bangladesh and Indonesia.46 and “consumers are familiar with other similar oral products”.47 The company has identified an opportunity to market these products in countries where electronic devices are less popular, affordable, or available due to regulatory restrictions. It also referred to markets where there is was a “pre-existing ritual of oral product consumption”.4647


After announcing its intention to sell nicotine pouches in Kenya, BAT launched Lyft in the country in December 2019.104849 In February 2020, the company announced that it was planning to build a new factory in Nairobi to produce nicotine pouches, and for Kenya to become a regional export hub for the product.50 BAT Kenya (BATK) managing director, Beverley Spencer-Obatoyinbo said that “Given the high incidence of oral stimulant use among smokers, we believe that this new product category will provide a viable alternative to smoking”, although she presented no evidence at the time to support this statement.50

In response to concerns about the potential impact on tobacco farmers, Business Daily Africa reported that BATK’s head of legal and external affairs stated that the company was “using proceeds from the tobacco portfolio to invest in the new categories. When the time comes, we will help them (farmers) transition to sustainable crops,” although this was “not a change that can happen overnight”.51 Spencer-Obatyoinbo confirmed that BAT switching to “non-combustibles” was “not an immediate thing”.51 Nevertheless, in September 2020, BAT was reported to be lobbying the Kenyan Revenue Authority (KRA) for a tax break for the product, citing its large investment and potential exports.52 (According to BAT the nicotine for its pouches is currently manufactured in Switzerland.)52 The Chief Executive of the International Institute for Legislative Affairs argued that this would be a “huge setback for tobacco control interventions in Kenya”.53 For more information see the Kenya country profile page.

The product was initially registered as a pharmaceutical product by the Kenya poisons board.54 This designation was challenged by local advocates.54 Health Cabinet Secretary Mutahi Kagwe wrote to the poisons board, arguing that the product had been wrongly designated, and stated that it was being distributed via vending machines in contravention of the law.5455 Although Lyft was de-registered and effectively banned, there was a reported lack of enforcement and the product was found to still be on sale in December 2020.5556 In February 2021, the Kenyan government said that it was intending to classify nicotine pouches as a tobacco product under the Tobacco Control Act, making the product subject to similar marketing restrictions as cigarettes and other tobacco products.55 Concerns have been raised in Kenya over potential use by children (see below).

In February 2021, BAT told investors that “In Kenya, we have temporarily suspended sales due to local regulatory challenges and continue to engage with the local authorities.”46 In March it told the Kenyan media that it was planning to spend Kenya Sh1 billion (US $10 million) on marketing Lyft once the product was approved.57 This included plans to set up distribution networks across 21 countries in the Common Market for Eastern and Southern Africa (COMESA).57


Velo was launched by BAT in Pakistan in December 2019, with a campaign run by Ogilvy Pakistan “positioned towards affluent adult consumers”.585960

A Freedom of Information Request submitted by Bath TCRG revealed that UK High Commission staff in Pakistan had attended a “social event” for Velo in February 2020. The FOI stated that “They were invited by the event coordinator and did not meet any Velo representatives at the event.”61


In February 2021, BAT referred to the test marketing its nicotine pouches in Indonesia and reported “encouraging results”.46

Concerns Around Use by Youth

Researchers in the US have identified the risk of nicotine pouches appealing to non-smokers and in particular youth, as some products come in a range of fruit flavours and are more discreet than e-cigarettes.262

In 2020, there were reports that Lyft was being used by children in Kenya.5063 Children were also reported to be using the products in schools in Scotland.64

In February 2021, journalists from the Bureau of Investigative Journalism published an article describing how BAT used social media influencers to promote its nicotine pouches in multiple countries, including Kenya and Pakistan. The authors argued that this was part of a campaign targeted at young people, rather than older adults trying to quit smoking.6566

BAT also promotes Velo through motorsport sponsorship.

Could pouches be promoted as NRT?

Some TTCs appear to be aligning their products with nicotine replacement therapy (designed to help smokers quit) while also promoting them as consumer products.

On BAT’s webpage for its “Modern and traditional oral products” it states that it markets Niconovum NRT products in the US and Sweden under the brand name Zonnic. It also states that “in Sweden, Zonnic products include tobacco-free nicotine pouches”.6768 In 2020, BAT (as R.J. Reynolds Vapor Company) rebranded its Revel nicotine lozenge as Velo, and submitted it for pre-market approval in the US.6970

In 2021, PMI also used the term “modern oral” to refer to nicotine pouches and other pharmaceutical-type products.32 For more information on PMI’s acquisition of pharmaceutical companies, see Philip Morris International and Tobacco Company Investments in Pharmaceutical & NRT Products.

On its science website, Imperial cites evidence on tobacco-leaf snus and other NGPs to support its statement that “these products are more satisfying – and acceptable – to adult smokers than traditional nicotine replacement products (NRTs) like patches, lozenges, and gums”.22  However, the evidence it cites pre-dates the widespread sale of nicotine pouches by TTCs: the 2016 report from the Royal College of Physicians (RCP) refers only to Zonnic and does not discuss satisfaction of acceptability of the product. A key finding of the RCP is that “Nicotine replacement therapy (NRT) is most effective in helping people to stop smoking when used together with health professional input and support, but much less so when used on its own.” 71 If nicotine pouches are sold as a consumer good, this would not be the case.

TobaccoTactics Resources

TCRG Research

For a comprehensive list of all TCRG publications, including TCRG research that evaluates the impact of public health policy, go to the Bath TCRG’s list of publications.

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