The future is oral: How nicotine pouches are disrupting the tobacco market
As regulations tighten and public spaces become increasingly smoke-free, the tobacco industry is pivoting its strategy, investing heavily in "next-generation" nicotine products.
From heated tobacco to oral pouches, the goal is to satisfy adult consumer demand for nicotine while adapting to restrictions and the social stigma of conventional smoking.
In this challenging business environment, innovation is crucial for the centuries-old, multi-billion-dollar tobacco industry to remain relevant and ensure its long-term survival.
Japan Tobacco International (JTI) has developed Nordic Spirit, a discreet, tobacco-free oral nicotine pouch. Positioned as a smoke-free alternative for adult nicotine consumers, it is part of JTI’s Reduced Risk Products (RRP) portfolio. First launched in Sweden in 2018, Nordic Spirit arrived in the Philippines in May 2023, becoming the first nicotine pouch brand in the local market.
JTI believes Nordic Spirit has immense potential in the growing market for alternative nicotine products as the company adapts to tightening regulations and evolving consumer demands for less harmful and more discreet nicotine options.
Despite being a relative newcomer, Nordic Spirit is already showing promising growth in the Philippine market. Since its introduction, sales have increased by 23 percent month-on-month, according to data from major convenience stores like 7-Eleven and Uncle John's.
A recent JTI survey of 7,000 consumers also revealed some positive reception, with 80 percent reporting a favorable experience with nicotine pouches.
Karin Tan, JTI Philippines RRP Category Director, notes that Filipino consumers are quickly embracing the product, drawn to its convenience and satisfying nicotine delivery, which also allows for unparalleled discretion.
Because it is smoke-free, Tan states Nordic Spirit can be used in offices, cars, or even on flights—places where traditional smoking or vaping simply is not an option. JTI’s small, white nicotine pouch is placed discreetly between the lip and gum, allowing nicotine to be absorbed through the oral mucosa.
While nicotine pouch consumption might seem new, it is not entirely foreign to the Philippines. For centuries, many Filipinos have engaged in "nganga," or betel nut chewing—a mixture of areca nut, slaked lime, and tobacco, all wrapped in a betel leaf. Nordic Spirit, however, is a distinct, all-white nicotine pouch that contains nicotine extracted from tobacco but without any actual tobacco leaf.
“The growth is actually quite phenomenal, and in terms of market sales, we are growing month-on-month,” Tan shares. “That demonstrates there is traction for modern oral nicotine products in the Philippine market.” She adds, “You can see in different parts of the Philippines that consumers are starting to really appreciate what this category can bring.”
Tan also assures that JTI’s nicotine pouches are safe, as their nicotine is extracted from high-grade tobacco plants, combined with food-grade flavorings, sweeteners, and plant-based fibers. Nordic Spirit comes in several flavors, from mints to sweet and frosty berries, as well as exotic fruit blends. Unlike vapes, it also requires no maintenance.
Learning from Sweden's success
The story of Nordic Spirit is rooted in Sweden's 140-year history with snus, a traditional tobacco mixture that gained popularity and spread across the Nordic region and beyond by the mid-20th century.
Today, Sweden is praised for its progressive approach to harm reduction, boasting Europe's lowest smoking rate at nearly five percent.
According to JTI, this achievement is largely attributed to the widespread adoption of oral nicotine products like snus and, more recently, nicotine pouches.
JTI now aims to replicate this success in the Philippines, which became the first country in Asia to permit the sale of nicotine pouches under Republic Act No. 11900, passed in 2022.
Emil Eliasson, Snus and Nicotine Pouch Lead Manager at JTI Scandinavia, explained the contemporary appeal of Nordic Spirit: "I think here in Sweden, there are increasing cigarette prices and a bit of stigmatization around smoking."
Swedish consumers use an average of eight nicotine pouches daily, with approximately 60 percent being former smokers.
Nordic Spirit is currently available in the Philippines at 7-Eleven, Uncle John’s, Lawson, The Marketplace, Lighters Galore, Food Panda, and Swebest. You can also purchase it online via Lazada and Shopee.