YEARLY INDUSTRY REVIEW
Haypp keeps leading transformation in the oral nicotine industry
The number of consumers looking for alternatives for smoking keeps growing every year— and Haypp continues to make an impact to help customers achieve these goals.
The desire for healthier alternatives has risen vs 2020 and led to:
Source: HAYPP LAB Survey 4400 respondents Sweden, Norway, Switzerland, UK, Germany, US
Switching to oral nicotine has saved Haypp Group customers 3,114,042 years of life
Calculation is based on 777,834 consumers with a 53% rate of quitting smoking. The number of years of life gained back depends on when smokers switched to using oral nicotine.
<35 = 10 years 35-44 = 9 years 45-54 = 6 years 55-65 = 4
Source: Haypp Groups Customers 2009-2021; Haypp Lab survey of 4400 respondents in Sweden, Norway, Switzerland, UK, Germany, US; Jha, Prabhat (2020): The hazards of smoking and the benefits of cessation: A critical summation of the epileptological evidence in high-income countries. eLife 2020;9:e49979
Nicotine Pouches is the present and future of oral nicotine
Haypp Lab’s insights help move the industry forward in favour of better choices for consumers.
We use our robust consumer knowledge to understand what drives trends. In the last year we see that the potential of Nicotine Pouches as a category in undeniable.
We are breaking ground in our approach to the nicotine industry.
This report compiles key highlights of our research in 2021 with nicotine pouches as the lead character. This category’s growth is not only based on the increasing interest of consumers in the product, but mainly driven by innovation as the differentiating factor.
Over the past thirteen years, we have built an understanding of what trends are fleeting and which are here to stay. This latest version of the annual report is meant to share visibility and insights with our communities.
The Nicotine Pouch market expands driven by new products
volume from 2020 to 2021
growth in number of brands in 2021 vs 2020
new SKUs from 2020 to 2021
customers from 2020 to 2021
Source: Haypp Group internal data Jan 2020-Dec 2021
TOP 4 HIGHLIGHTS
Giving consumers more smoke-free alternatives to choose and a wider variety of products in terms of flavours, nicotine levels and formats.
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Highlight 1
Nicotine Pouches traction has led to an established category
Nicotine pouch volume sold in million cans (2013-2021)
Consistent growth*Projected based on Q1 2021 vs Q1 2020 growth
Source: Haypp Group internal data 2013-Q1 2021
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Highlight 2
Monthly evolution of nicotine pouches reflects consistent growth
Global sales of nicotine pouches in million cans (2021)
Source: Haypp Group internal data Jan-Dec 2021
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Highlight 3
More and more players are entering the oral nicotine market
- # of total brands
- # of total SKUs
Source: Haypp Lab internal data 2016-2021
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Highlight 4
Product innovation has expanded the category
- # of new SKUs launched
- % of total nicotine pouch volume
Source: Haypp Lab Internal data 2021
Global trends
The global movement to prioritise health and wellness has impacted the nicotine industry, especially after 2020: cigarette purchases are decreasing, and purchases of nicotine pouches are increasing. The category is growing exponentially in some key markets that are leading the change.
Consumers show different behaviours in different markets. With our knowledge around the category we are able to capture crucial data that reflects the main highlights per country.
Haypp Group global trends, by market
Global Attributes Growth
Top 3 biggest product attributes globally
Biggest Flavour:
Mint
Biggest Format:
Slim
Biggest nic. Strength:
Normal
Top 3 fastest growing product attributes globally
Flavour
Fruit
Format
Mini
Nic. Strength
Extra Strong
Source: Haypp Group internal data 2021
Most Successful Innovations
Mini Moist
Launched in late 2020
>1mn cans in 2021
Accounting to 31% of total mini segment
Fruity Flavours
Overtook Citrus and became 2nd biggest flavour after Mint
Synthetic Nicotine
Main format used for new launches in USA in 2021
Key markets are leading the boom in the nicotine pouches category growth
Nordic countries, USA and 3 EU members contributing to a dynamic global market.
Biggest nicotine pouch markets:
Sweden
10.4 million cans
USA
Norway
Germany
Switzerland
UK
Austria
Growth rate
vs 2020:
+0%
Sweden+0%
USA+0%
Norway+0%
Germany+0%
Switzerland–0%
UK+0%
AustriaSource: Haypp Group internal data 2021
Haypp provides a healthy option for consuming nicotine. We have a strong sense of responsibility to our customers and aim to make a positive impact on the industry.
Consumer trends
Haypp delivers information and data focused on consumer’s likes and interests and makes sure we bring their voice right to the manufacturers. Everything we do is grounded into creating better products for our customers. Get to know the nicotine pouches global view and what drives innovation.
Trial Rate
53%
of all Haypp Groups’ purchases in nicotine pouches contained a SKU that those customers bought for the first time. In average, each customer bought 4 new SKUs in 2021.
Source: Haypp Group internal data 2021
Understand how Nicotine Pouches consumers behave
Click a tab to explore more
Nicotine Pouches consumers skew young-adult and slightly male
Source: Haypp Lab internal data 2021
The main driver for Nicotine pouches purchases is smoking cessation
48% To stop smoking
28% Invited by a friend or family member
20% Saw others use Nicotine pouches and became curious
9% Do not remember
2% Found the marketing appealing
are 18-34 years old
are male
also use snus
Flavour, Price and Nicotine level are key factors for purchase
76% Flavour
65% Price
62% Nicotine Level
32% Pouch Size
25% Brand
17% Moisture Level
2% Design of the Can
Source: HAYPP LAB Survey 4400 respondents Sweden, Norway, Switzerland, UK, Germany, US
Young male consumers are the most interested in new products
Source: Haypp Lab internal data 2021
Price and new options within flavour and nicotine levels are the main drivers for trying a new product
60% Attractive price
41% A new product within my favourite flavour
36% A new product within my nicotine level
33% Exciting new flavours
32% A new product within my favourite brand
20% A new product within my preferred pouch size
15% I rarely try new products
11% A product within a new brand
8% Attractive communication / marketing
Male have a higher trial rate
18-24 years has the highest trial rate
% of new products in baskets
What Flavours are you missing in your country? Top 3
46% Fruits
20% Sweet
19% Other Flavours
16% Mint Variants
Source: HAYPP LAB Survey 4400 respondents Sweden, Norway, Switzerland, UK, Germany, US
Understand nicotine pouches consumers loyalty funnel by group
Female and older customers tend to be more loyal.
Source: Haypp Lab internal data 2021
Post 2020
E-commerce trends
2020 changed customer behaviour across e-commerce, and the nicotine pouches industry felt this shift as well. Online purchases have increased as customers are more drawn towards convenience and price. Now that 2021 has passed, the data indicates this change in customer behaviour is here to stay.
All of these factors have supported us at Haypp Group as we have worked to establish a deep online customer base. We have experienced growth at a faster rate than total e-commerce, which bodes well for future years across the category.
Haypp Group continues to grow at a faster pace than the average online retail
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Trend 1
Online as key channel to find new and convenient products:
Source: A year like no other for European retailers: The state of the industry post 2020. Mc Kinsey
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Trend 2
Haypp Group continues to grow at a rapid rate
Source: Haypp Lab internal data 2021
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Trend 3
Haypp Group global SOM in online keeps expanding
Source: Haypp Lab internal data 2021
The future looks
BRIGHT
Source: HAYPP LAB Survey 4400 respondents Sweden, Norway, Switzerland, UK, Germany, US
Nicotine Pouches category in full motion driven by innovation
The nicotine pouches industry is fast-paced, dynamic and incredibly exciting. This part of the nicotine industry is primed to impact customers by supporting their health and longevity without requiring dramatic behavioural changes. The demand for nicotine pouches continues to increase, as do the opportunities to engage with consumers.
Innovation has played a key role into the expansion of the category, as consumers are constantly looking for new products that fit their needs. We believe the most successful SKU has not been invented yet and we foresee this trend to continue for the upcoming years.
At Haypp Lab, we keep gathering relevant data that will represent the voice of consumers and bring the category forward. We look forward to shedding light on customer behaviour and market trends and using cutting-edge research and analytics to help develop new products and guide brands.
At every turn, we’re ensuring the industry is consumer-centric—and ensuring the future is one consumers are excited about.