Nicotine pouch use surges tenfold in five years, research reveals

A University College London-led study published in The Lancet Public Health finds nicotine pouch use in Great Britain has risen tenfold from 0.1% in 2020 to 1.0% in 2025 (about 700,000 users), driven by a sharp increase among 16–24-year-olds (0.7% in 2022 to 4.0% in 2025); users are disproportionately young men, more than two‑thirds also smoke or vape and 16% never smoked. Researchers and public‑health groups warn the growth stems from aggressive, largely unregulated marketing and note smokers increasingly use pouches in quit attempts (2.6% to 6.5%), prompting calls—backed by Cancer Research UK—for the Tobacco and Vapes Bill to introduce age‑of‑sale limits, advertising, flavour and nicotine-content restrictions, signaling both commercial upside in a rapidly expanding product category and material regulatory risk that investors should monitor.

Analysis

A University College London-led analysis of almost 128,000 adults reported nicotine pouch prevalence in Great Britain rose from 0.1% in 2020 to 1.0% in 2025, representing roughly 700,000 users; use among 16–24-year-olds jumped from 0.7% in 2022 to 4.0% in 2025. The cohort skew is concentrated in young men, more than two-thirds of pouch users also smoke or vape, 16% have never smoked regularly, and the share of smokers using pouches during quit attempts increased from 2.6% to 6.5%.

Researchers and public-health groups attribute the surge to aggressive, largely unregulated marketing across social media, outdoor advertising and event sponsorships, and highlight that pouches currently face no age-of-sale, nicotine-cap or marketing restrictions. The study, published in The Lancet Public Health and funded by Cancer Research UK, calls attention to the Tobacco and Vapes Bill which would introduce under-18 sales bans and limit advertising, flavours and nicotine content.

For markets, the data signal commercial upside from rapid consumer adoption but material regulatory risk that could constrain growth, increase compliance costs, or limit flavours/marketing that drive uptake; sentiment metrics attached to the story are mildly negative with a modest market-impact score. Investors should therefore balance near-term demand growth against the probability and timing of legislative action when assessing valuations for consumer-cigarette-adjacent product exposure.

Key Decisions for Investors

• Monitor progress and specific provisions of the Tobacco and Vapes Bill (age-of-sale, advertising, flavour and nicotine caps) and pause material new allocations to pure-play nicotine-pouch businesses until regulatory scope and timing are clarified
• If seeking exposure, prefer diversified tobacco or consumer companies with regulatory-compliance capability and alternative reduced-risk portfolios rather than small independent pouch marketers that rely on aggressive marketing
• Use leading indicators—monthly/user-age cohort growth, share of pouches used in quit attempts, and advertising spend—as short-term revenue signals and hedge positions for potential regulatory-driven earnings volatility