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Health & Consumer Trends

Nicotine Pouches Surge in Israel

The tobacco-free product, placed between gum and lip, has become one of the fastest-growing segments in the nicotine industry despite health warnings and regulatory pushback in several countries

Snus bags

White nicotine pouches, small packets placed between the gums and lip that release nicotine without tobacco, have emerged as one of the fastest-growing product categories in the nicotine industry, with profit margins significantly exceeding traditional cigarettes.

The pouches, sometimes referred to by the brand name "snus," have gained traction particularly among younger consumers, raising concerns among health authorities about the addictive substance and potential risks. British American Tobacco (BAT) estimates the global market will reach $15 billion by 2030. Philip Morris reported that gross profit margins on the pouches in the United States were eight times higher than conventional cigarettes, according to Reuters.

Despite success in the United States and Scandinavia, tobacco companies face challenges introducing the product in markets without established oral nicotine consumption habits. Industry analysts note that many consumers still prefer the inhalation experience, creating a significant barrier to adoption.

Health organizations have expressed growing alarm. The World Health Organization has warned against aggressive marketing tactics and high nicotine levels that appeal to young people. France has already banned sales of the product, while Finland and Britain are advancing stricter regulations.

Industry executives argue that consumers need diverse alternatives. BAT's CEO stated, "I believe this is a growth engine... that has the potential to replace cigarettes in the long term." Philip Morris noted that "adult smokers are not a homogeneous group of people with the same preferences, behaviors or taste."

In Israel, the pouches are becoming increasingly visible in kiosks and shops selling cigarettes and vaping products, indicating growing local demand.

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