GINN Statement | 30 July 2026
The latest half-year results from several of the world’s largest tobacco and nicotine companies reinforce a significant shift in the global nicotine market: growth in smoke-free products is increasingly extending beyond traditional Nordic markets, with Europe emerging as a major centre of demand, investment and innovation.
Philip Morris International reported that international modern oral volumes grew by 14.7% in the second quarter of 2026 and by 26.3% when the Nordic markets were excluded. ZYN is now available in 60 markets, with the company identifying Poland and the United Kingdom among the markets showing strong growth. These figures are especially important because they demonstrate that the development of the nicotine pouch category is no longer dependent primarily on its established Scandinavian base. (Philip Morris International)
British American Tobacco reported an even stronger performance in modern oral products. Its modern oral revenue rose by 65.9% during the first half of 2026, making the category BAT’s largest New Category by revenue. The company also reported sustained double-digit growth across its Americas and Europe region and other international markets. (BAT)
Although Altria’s operations remain principally focused on the United States, its results provide further evidence of the broader structural movement towards oral nicotine. The nicotine pouch category represented 59% of the US oral tobacco market during the first half of 2026, an increase of 8.6 percentage points from the previous year. Altria also reported that total oral industry volume grew by an estimated 6%, primarily because of nicotine pouch growth, while shipments of its on! brand increased by 5.1% during the first half. (Business Wire)
Japan Tobacco’s results similarly point to continued investment and growth across reduced-risk categories. Its latest reporting is driven primarily by heated tobacco rather than nicotine pouches, but its wider portfolio includes modern oral products, and its first-quarter results recorded 44.2% growth in reduced-risk product volumes and 63.8% growth in related revenue. This broader transformation across the nicotine sector adds to the evidence that consumer demand is progressively shifting towards products that do not require combustion. (JT)
These company results matter, but they tell only part of the story.
The growth of the European nicotine pouch market has not been created solely by multinational tobacco companies. Independent manufacturers, brand owners, distributors and specialist retailers have played a central role in developing the category, responding quickly to adult consumer preferences, improving product formats and expanding responsible access across diverse national markets.
GINN members, including companies and brands such as Global Snus and CAMO, Pouch Solutions and BLIP, MYNT, and Snus Fusion, represent this independent segment of the market. Their contribution has helped introduce greater competition, product diversity and specialist manufacturing expertise while supporting the development of higher standards across the category. (Global Institute for Novel Nicotine)
This diversity is important. A healthy and responsibly regulated nicotine pouch market should not become the exclusive domain of a small number of multinational companies. Independent businesses contribute innovation, regional knowledge and competition, while giving consumers access to products designed for different adult preferences and levels of nicotine dependence.
Europe now faces an important regulatory choice. The commercial evidence suggests that nicotine pouches are moving into the mainstream smoke-free nicotine market, including in countries outside the Nordic region. Regulation must therefore move beyond fragmented national approaches and provide clear, predictable and proportionate standards.
GINN supports robust age restrictions, responsible marketing, transparent ingredient requirements, appropriate nicotine limits, consistent labelling and strong enforcement against illicit and non-compliant products. However, regulation should also preserve legitimate adult access, enable responsible product innovation and recognise the substantially different risk profiles of combustible and smoke-free nicotine products.
The latest results should not be interpreted simply as a corporate earnings story. They reflect a wider change in adult consumer behaviour and an expanding European market for smoke-free alternatives.
Europe has the potential to become the next major growth engine for the nicotine pouch category. Realising that potential responsibly will require evidence-based regulation, fair competition and recognition of the independent manufacturers whose innovation has helped build the market from the beginning.
