Nicotine pouches gain ground in Poland as tobacco groups pursue higher margins

A smoke-free category moves into the mainstream

Nicotine pouches are gaining ground in Poland as global tobacco companies search for products capable of offsetting declining sales of conventional cigarettes. The small oral pouches contain nicotine but no tobacco and require neither burning nor heating. They produce no smoke or vapour, allowing their use in many places where cigarettes or e-cigarettes are prohibited, according to Polish retail publication dlahandlu.pl.

Philip Morris International and British American Tobacco are placing greater strategic weight on the category. Reuters, as cited by dlahandlu.pl, reports that declining cigarette sales are pushing tobacco groups toward products that can sustain growth and profitability. Poland is among the markets where BAT says demand for nicotine pouches is increasing, alongside the United Kingdom.

Global sales outlook strengthens the investment case

BAT forecasts that the global nicotine-pouch market will rise in value from about £4 billion in 2025 to £11 billion in 2030. The company expects the number of users to reach 47 million during that period and projects that the segment will overtake the e-cigarette market. BAT also recorded an almost 28% increase in sales across Asia, the Middle East and Africa, although those markets remain substantially smaller than Europe and the United States.

The category's economics are particularly attractive to manufacturers. Philip Morris previously reported that its US nicotine-pouch business generated eight times more gross profit per thousand units sold in 2024 than its international cigarette business. Its IQOS heated-tobacco system was also less profitable on that measure. Consequently, analysts are increasingly using pouch performance to assess the prospects of the largest tobacco groups.

Cigarettes still dominate company volumes

Rapid growth does not yet make nicotine pouches a universal replacement for cigarettes, e-cigarettes or heated-tobacco products. Oral products currently represent only 2.6% of Philip Morris's total sales volume. Cigarettes remain the company's principal source of revenue and profit, demonstrating the distance between the category's growth potential and its present commercial scale.

Consumer behaviour presents another obstacle. In many countries, nicotine users are accustomed to inhalation rather than oral consumption. Analysts cited by dlahandlu.pl say the absence of an established oral-nicotine tradition could materially restrict expansion. Success will therefore depend partly on whether manufacturers can build demand beyond countries where oral nicotine has long been familiar.

Regulation becomes the central constraint

The regulatory environment is tightening as sales rise. The World Health Organization has raised concerns about intensive marketing and the high nicotine content of some products and has called for stricter rules. As recently as May, around 160 countries had no specific regulations for nicotine pouches, leaving them subject in many jurisdictions to lighter requirements than e-cigarettes or heated-tobacco products.

That gap is narrowing. France has prohibited pouch sales, Finland has introduced measures including standardised packaging, and the United Kingdom and European Union are preparing further restrictions. Philip Morris and BAT do not expect pouches to replace every other nicotine category, arguing that adult consumers have different preferences. For Poland's producers, distributors and retailers, pouches are becoming a significant growth line, but future market share will depend on regulation, pricing and the ability to convert consumers from inhaled products.