PMI: “Without Rules, Nicotine Pouch Market Shifts to Illicit Trade”
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PMI’s President of Oral Products: “When there are no rules, the market shifts to the illegal segment”

The market for nicotine pouches remains one of the most discussed categories in the smoke-free products sector. While some countries are introducing product standards and age restrictions, others are relying on bans. Logos Press spoke with Nick Ricketts, President of Oral Products at Philip Morris International, about which approaches are more effective, what can be learned from Sweden, and why regulation is becoming a key factor in the market’s development.
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Nick Ricketts

Nick Ricketts

Many countries are still developing their approach to regulating nicotine pouches. What do you think the guiding principle should be?

 — The main principle is very simple: the product must be part of a regulated system. Any new product category raises questions for regulators, and that’s normal. But instead of leaving the product outside the legal framework or banning it, it’s important to establish clear rules.

Today, our nicotine pouches are available in about 60 countries. Experience shows that the most effective systems are those based on product standards, age verification, and responsible marketing requirements. Such approaches have already been implemented in more than 20 countries.

What must such a regulatory system include?

— First and foremost, restrictions on nicotine content. The second important element is the regulation of flavors. They should help adult smokers switch from cigarettes, but not attract those who have never used nicotine, and certainly not minors. It is important that the interaction with adult consumers remains factual, not emotional.

Strict age restrictions, sales controls, and clear marketing rules are also necessary. When such mechanisms are enshrined in law, the regulator gains control tools, businesses understand the requirements, and consumers receive a product that meets established quality and safety standards.

Which countries are the most exemplary in terms of regulatory policy?

 — There are several different models. In the U.S., the FDA (Food and Drug Administration) oversees safety and product quality: the manufacturer submits a complete scientific dossier, after which a comprehensive evaluation  – including an audit – is conducted. Only then can the product be approved for the market.

In several European states as Italy and the Czech Republic stand out for having fairly transparent product standards. In recent years, many countries have also begun to introduce specific requirements for nicotine pouches. For example, Ireland is tightening regulations on new nicotine products, with a particular focus on protecting minors. Denmark and Finland have updated their requirements regarding packaging, pouch size, and nicotine content. The Czech Republic and Latvia have established a minimum age for purchase. Morocco has set restrictions on nicotine content.

In other words, approaches vary, which is natural for a new product category. But the general principle is the same: not to ban products automatically, but to evaluate the data, the scientific evidence, and the actual behavior of adult consumers.

Regulators are exercising caution, but it is important that this does not turn into a refusal to regulate.

Nevertheless, some countries are choosing the path of bans. How effective is this approach?

 — A ban does not always eliminate demand. If consumers continue to seek out the product, they turn to illegal or semi-legal distribution channels. As a result, the government loses the ability to control product quality and ensure compliance with age restrictions.

A striking example is Germany. There, nicotine pouches have ended up in a legal gray area: they are classified as food products, but food products are not allowed to contain nicotine. As a result, legal sales are restricted, yet demand persists, which fuels the growth of the illegal market.

There is also the example of Belgium, which has completely banned nicotine pouches. It shows that a ban and regulation are not the same thing. Even after the ban was introduced, the products remained available on the market. In such a situation, the government has to combat not the product category itself, but rather the illegal trade.

Under a system of standards, the situation is different: there are clear parameters, understandable sales rules, and consequences for violations. This makes regulation more manageable.

Why is Sweden considered a key example in this debate?

 — Because it is a country that has achieved remarkable results. Sweden became the first country in the world where the rate of smokers of traditional cigarettes fell below 5%. While smoking rates in most European countries are around 24%, Sweden has managed to reduce them to 4.5% among native Swedes and to 5.3% among the entire adult population, including immigrants.

Of course, this result cannot be explained by a single factor, but alternatives for adult smokers played a significant role. For nearly 100 years, adult consumers in Sweden have had access to alternative nicotine products: first to snus, then to nicotine pouches and other smoke-free categories.

At the same time, regulation, oversight, and clear market rules were in place. It is precisely this combination of factors that is of particular interest to other countries.

What role did tax policy play in the “Swedish model”?

— It plays a significant role. Sweden uses a differentiated approach to various product categories. Excise taxes on snus and nicotine pouches there remain lower than those on cigarettes. This is an example of how the government can use tax instruments as part of its overall regulatory policy.

What role do nicotine pouches play in PMI’s strategy?

— They are part of our smoke-free strategy. Following the acquisition of Swedish Match, the company’s portfolio now includes the leading product in the nicotine pouch category. The goal of the acquisition was to expand our line of smoke-free products, which consists of tobacco heating devices and e-cigarettes.

In the first quarter of 2026, our nicotine pouches were available in 58 markets. In the modern oral products category, shipment volume reached 0.5 billion pouches. Outside Northern Europe, the brand continues to strengthen its position, including in Pakistan, Poland, and the United Kingdom. Variants containing 1.5 mg of nicotine are available in more than 80% of the markets where the brand is present.

We view this category not as a standalone product, but as part of a multi-category approach for adult consumers.

How do you ensure the protection of minors?

— We have a strict system in place to prevent access by minors. We comply with marketing restrictions and use mandatory age verification in our own sales channels.

However, some sales take place through independent retail chains, which is why training for sales staff and government oversight are important. Essentially, this is comparable to alcohol regulation: the rules must be clear, and compliance must be enforced.

How do you assess the prospects for regulating nicotine pouches in the coming years?

— I’m optimistic. The pace will vary from country to country, but the overall trend is the same: if an adult smoker doesn’t quit nicotine, they should have legal alternatives to cigarettes.

Once a product exists, it is far more effective to regulate it through a transparent mechanism than to leave the market in a gray area. International experience shows that clear rules provide better consumer protection, ensure quality control, and prevent access by minors.

That is precisely why I am confident that the future of this category lies in responsible regulation. There can be no other options.

Chisinau – Stockholm


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