Snus: Growth Opportunity for Nicotine Manufacturers

A Potential Growth Opportunity for Tobacco and Nicotine Manufacturers

Written by Pharmadocx Consultants

5 May 2025

Snus and nicotine pouches have become a preferred alternative to traditional smoking for many consumers. Owing to increasing awareness, changing consumer preference, and product innovation, the snus market is rapidly evolving. Thus, globally, snus and nicotine pouches are gaining traction as a potential growth opportunity for tobacco and nicotine manufacturers. The snus and nicotine pouches market is expected to expand steadily. It is being fuelled by increasing consumer interest in smokeless alternatives as well as stricter regulations for smoking tobacco.

Snus and nicotine pouches are often seen as a safer alternative to traditional smoking products. With a rising demand for smokeless tobacco products and increased regulatory scrutiny, the snus market has emerged as a significant player in the global tobacco industry. Therefore, with consumers moving away from traditional smoking products, snus and nicotine pouches are propelling the growth of tobacco and nicotine manufacturers.

What are snus and nicotine pouches?

Before delving into the market trends, let us first understand what are snus and nicotine pouches.

  • Snus: Snus is a moist smokeless tobacco product to be placed under the upper lip. Its nicotine delivery mechanism is via the mucous membrane of the mouth. Originating in Sweden, snus contains finely ground tobacco.
  • Nicotine pouches: Nicotine pouches are small pouches containing a blend of purified nicotine and various flavouring agents. They are designed to deliver nicotine through oral absorption. Nicotine pouches are free of tobacco.

Both snus and nicotine pouches are gaining traction as smokeless alternatives and harm-reduction products.

Snus and nicotine pouches market trends

The global snus market value was estimated at approximately USD 3.1 billion in the year 2022. From USD 3.2 billion in 2023, it is predicted to achieve USD 4.7 billion by 2032. The growth is expected to happen at a CAGR of 4.80% during the 2023 to 2032 period. On the other hand, the global nicotine pouches market value was sitting at approximately USD 3.2 billion in the year 2024. The market value is expected to grow at a CAGR of 27.39% from 2025 to 2033. Thus, it is estimated to attain approximately USD 28.2 billion by 2033.

The snus and nicotine pouches industry has a bright future. Hence, entities seeking new business opportunities can tap into the potential of the snus and nicotine pouches manufacturing industry.

Factors driving snus industry: A potential growth opportunity for tobacco and nicotine manufacturers

  1. Shifting consumer preferences: Consumers are becoming increasingly aware of the health risks associated with smoking. Hence, they are switching to smokeless tobacco products or tobacco-free alternatives. Snus is perceived as a safer alternative because it eliminates the hazards associated with combustion and inhalation of smoke. Being a harm-reduction product and smokeless alternative, snus is gaining traction among consumers. This is making snus a potential growth opportunity for tobacco and nicotine manufacturers.
  2. Increasing regulatory pressure: Smoking bans are being strictly introduced in public places and workplaces. Hence, consumers are shifting towards smoke-free alternatives. This is propelling the demand for snus and nicotine pouches. These products help consumers enjoy tobacco or nicotine without the need to smoke. 
  3. Product innovation: Product innovation is at the core of snus industry’s market growth. Manufacturers are not only refining the nicotine delivery mechanism but also transforming the user experience by offering diverse product variants. Young health-conscious adults are always seeking product variation. By offering innovative products, snus manufacturers can widen their consumer base. Snus is available in an extensive range of flavours that appeals to the younger demographics looking for novelty in their consumption habits.
  4. Availability of premium and organic options: Snus manufacturers can offer premium and organic options. As consumers are becoming increasingly conscious, they are shifting towards premium and organic options. This driving a trend for “cleaner” or more natural products. Hence, snus manufacturers can tap into a niche market commanding a premium price.
  5. Technological advancement: Beyond product innovation, technological advancement contributes to the attractiveness of snus. Enhanced formulations are being used to deliver nicotine effectively and consistently. It can be used to mimic or even improve the satisfaction derived from smoking. This advancement is being used to attract increasing number of consumers seeking to switch from conventional cigarettes.
  6. Innovative product packaging: Discreet, modern, and user-friendly packaging solutions are being used to enhance product convenience. This is making it easier for consumers to use snus in various settings. Features, such as user-friendly as well as smoke free, are driving the demand for snus. Thus, by offering innovative product packaging, tobacco and nicotine manufacturers can cater to this increasing demand and reap profits of this industry. 
  7. Urbanization and disposable income: Economic factors, such as urbanization and increase in disposable incomes, are facilitating the adoption of premium nicotine products. Thus, snus and nicotine pouches are becoming an increasingly viable option for a more diverse segment of consumers.

What are the latest trends in the snus industry?

Tobacco and nicotine manufacturers should be aware of the latest trends in the snus industry to stay ahead in the market. Innovative snus products are being used to redefine user experience. Advancement in formulation, packaging, and flavour design is being used to attract consumers. The snus industry is dynamic and continuously evolving to ensure enhanced consumer experience and convenience as well as meet regulatory requirements. We have highlighted some of the latest trends in the snus industry.

  1. Portion snus: Classic loose snus has transitioned into pre-portioned pouches that ensure consistent dosing and ease of use. These portion snus products come in various sizes, ranging from mini to standard. Portion snus ensures convenience as well as allows for a more controlled nicotine release. This innovation will cater to modern consumers’ demand for on-the-go usage.
  2. Chewable snus pouches: Another innovation catering to consumer demands is chewable snus pouches. These pouches take the traditional snus concept a step further. These products are chewable. They provide an alternative mode of nicotine delivery while retaining the discreet benefits of smokeless tobacco. This design caters to users who seek both rapid nicotine satisfaction and a novel consumption style.
  3. Advanced packaging solutions: Advancement in packaging innovations is playing a vital role in improved user convenience and experience. Recently, snus cans designed with interconnected parts that enhance airtight sealing have been launched. This helps preserve the product’s flavour and nicotine integrity as well as aligns with regulatory and sustainability requirements. The cost-effective and compliant packaging design is beneficial for manufacturers while providing a superior user experience.
  4. Premium products: Consumers are becoming increasingly health-conscious and are shifting their preference towards organic and premium products. Several brands are cashing in on this trend by introducing premium snus products featuring organic ingredients and unique flavour profiles. These innovations target a demographic that is open to trying less harmful, premium, and organic alternatives to traditional tobacco products.

Pharmadocx Consultants can help you launch your snus and nicotine pouches without any regulatory hurdle

We have highlighted the snus and nicotine pouches market trend and potential. Has this got you intrigued to start a snus and nicotine pouches manufacturing business? You will have to secure the Form 25 license to manufacture snus and nicotine pouches in India. To easily secure the manufacturing license and ensure regulatory compliance, email at [email protected] or call/Whatsapp on 9996859227.

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