What's Happening?
Convenience-store retailers across the United States are experiencing significant growth in the smokeless nicotine product category, according to the third-quarter 2025 Nicotine Nuggets Survey by Goldman Sachs. The survey, which covers approximately 40,000
c-store retail locations, highlights the robust performance of modern oral nicotine brands such as Zyn, Velo Plus, and On Plus. These products have shown strong double-digit growth, with Velo Plus and Zyn leading the charge. Retailers anticipate continued momentum into the next year, driven by innovation in flavors and nicotine strengths. The survey also notes a 20% growth in smokeless/oral nicotine volume in the third quarter, up from 15% in the second quarter of 2025.
Why It's Important?
The growth in smokeless nicotine products is significant for the tobacco industry, which is facing increasing regulatory pressures and changing consumer preferences. As traditional cigarette sales decline, companies like Philip Morris International, Reynolds American, and Altria are focusing on smokeless alternatives to capture market share. This shift not only impacts the companies involved but also affects public health policies and consumer behavior. The expansion of smokeless products could lead to a reduction in smoking-related health issues, although it also raises questions about the long-term health effects of nicotine pouches. Retailers stand to benefit from increased sales and customer engagement, while consumers gain more options in nicotine consumption.
What's Next?
Looking ahead, the smokeless nicotine category is expected to grow by 19% in 2026, according to the survey. Retailers are optimistic about the role of innovation in driving this growth, with new flavors and nicotine strengths anticipated to attract more consumers. However, there are concerns about the promotional intensity within the category, with some retailers warning that it may become too driven by promotions. As the market evolves, stakeholders will need to balance innovation with responsible marketing practices to ensure sustainable growth.
