Just recently, nicotine pouches reportedly had a quite unexpected rise in sales in the 3rd quarter of this year. These tobacco-free products continue to take the U.S. by storm. With a variety of product lines coming from different companies, these nicotine pouches originated from Scandinavia and are popular not only across the United States. Add to that, these are now very popular across the globe.
What are nicotine pouches?
Under-the-lip Nicotine pouches, for some, are a diversion from smoking. They come in different flavours that entice consumers and would-be patrons.
Also, manufacturers take pride in the fact that their revenues are growing. Profits are said to have gone from 1.3 billion to 1.59 billion Swedish crowns annually, against the average forecast of 1.44 billion.
This innovation is so in demand that most users have become familiar with its use, like customers of snusdirect. But if we are to look closely at its purpose, is it really a safe alternative to smoking? Are there other benefits that users can get out of using them, or is it just a fad?
Is using nicotine pouch safer in comparison with smoking?
Well, you can always say that marketing departments within companies are the reason why products are supported by many consumers. Without a good marketing crew in place, who is going to herald the news and bring it into every household? Let’s take these one by one.
These products can never be a better alternative to smoking. Maybe that’s what you want to hear; or is it? In American soil, it falls under the category of modified risk status according to the U.S. FDA. It means that companies can now market them as less dangerous versus cigarettes, which are laden with high amounts of nicotine.
Just the same, it doesn’t follow that they are healthier options or alternatives. For obvious reasons, smart tacticians like marketing teams are able to make it appear as such, but in a very subtle way.
If you have already used nicotine pouches and have stopped smoking, doctors suggest weaning yourself from them to reach permanent nicotine freedom. There are also approved short-term nicotine replacement therapies that include:
- Gum
- Nicotine patches
- Lozenges
- Nicotine inhaler
- Nasal spray
Are nicotine pouches a fad?
Since shipments to the U.S. have grown along with the high demand for these non-tobacco products, it doesn’t look like these are just a fad. These products are holding on to their status and plan to stay for a long time. As long as there are flavours concocted by manufacturers that entice users to try them, they will continue to be sold wherever possible.
Also, as long as there is competition that springs up against the use of cigarettes, there will always be skyrocketing sales. People are curious, and this drives them to create hype. Thus, there is a good reason for aspiring entrepreneurs to venture into a nicotine pouch business. This is a lucrative money-making business and a rewarding one as well.
How much money can you really make out of selling nicotine pouches?
This is a very vague question because in reality, you can never make up figures unless you have the right blueprint. Try to look at these:
- Research and analysis
- Business plan
- Sourcing
- Managing of supply chain
- Marketing
- Sales
- Legal/regulatory compliance
- Operations (logistics)
Once you have studied all the aspects that relate to this type of business, then, you’re on your way to becoming the next successful nicotine pouch business owner.
Think about your target customers. Where are they located? If you have a huge market, say, in Europe, be sure that the sale of the product is not in the regulated category. However, if you find them on the list, chances are you will suffer from the imposed penalties.
Does your product stand a chance with the regulatory boards of the countries where you are planning to sell? Think of selling to regions that have more friendly restrictions. This makes up for more profits than losses.
There is an average of 31 million cans shipped to the U.S. and available in around 60,000 stores nationwide. From this data, you can see that nicotine pouches are here to stay. However, it only boils down to the kind of marketing strategy that one has that can see the business through a longer scenario.
