Countries banning nicotine pouches are still home to markets worth tens of millions, with consumers turning to overseas sellers and some unaware their products have become illegal, a new report finds.
Germany and France remain sizeable markets despite restrictions intended to keep pouches off the shelves, according to TobaccoIntelligence’s Global Illicit Nicotine Pouch Report 2026.
The researchers put Germany’s market at $195 million (€175 million) and France’s at $34 million (€30 million), ranking them ninth and 22nd globally.
The report argues that bans, restrictive nicotine limits and barriers to online sales can leave demand intact while handing business to suppliers operating outside the rules.
TobaccoIntelligence, part of Tamarind Intelligence, says its analysis is independent of British American Tobacco, which commissioned the research.
A ban many users had missed
Nicotine pouches are small, tobacco-free bags placed between the lip and gum to release nicotine without burning tobacco or producing smoke.
Illicit nicotine pouches are a by-product of rapid growth, fragmented regulation and limited enforcement, and they affect consumers, governments and compliant businesses alike.
France banned their sale, purchase and use from 1 April 2026. The government cited concerns about addiction and poisoning, particularly among young people. Medicinal nicotine replacement products are exempt.
But the report’s July survey found that 56 per cent of French pouch users questioned did not know about the ban. Just 44 per cent were aware, barely changed from 43 per cent shortly before it took effect.
The July findings came from a relatively small sample of 126 pouch users. Even so, they point to an immediate enforcement problem - many people buying the products may not realise they are breaking the rules.
Germany has what the report describes as a ‘de facto ban’. Authorities classify pouches as food containing an unauthorised novel ingredient, meaning they cannot legally be sold. The report nevertheless estimates that Germany has 614,000 adult pouch users.
Buyers look abroad
The online findings show how easily demand can cross borders.
In Germany, 90 per cent of the nicotine pouch-related web traffic analysed for 2025 went to foreign websites. In Sweden, where pouches and online sales were permitted, the figure was 10 per cent.
Belgium, another banned market, also recorded 90 per cent. The figures measure visits to websites, rather than completed purchases, but illustrate the reach of overseas retailers.
The researchers also warn that restrictions can create room for particularly strong products. Pouches containing up to 50mg of nicotine each were most commonly found in markets where the category was banned or effectively banned through very low nicotine limits.
Their argument is that when both a lower-strength pouch and a much stronger one are illegal, unlawful suppliers have little regulatory incentive to favour the weaker product.
Tax goes missing
The report identifies a sizeable gap in Hungary’s tax receipts, too.
Authorities collected 731 million Hungarian forints (€2 million) in pouch tax in 2025, against the researchers’ estimate of 1.889 billion forints (€5.2 million) if tax had been paid across the market. That is less than 40 per cent of the estimated total.
The shortfall is based on TobaccoIntelligence’s market assumptions, rather than an official measurement of tax evasion. The authors acknowledge that some legal cross-border shopping may occur, while suggesting untaxed and counterfeit products also contribute.
Illicit products can take several forms. They can be counterfeits, smuggled goods, products missing required authorisations, or otherwise legitimate brands sold through prohibited channels.
Tim Phillips, founder of TobaccoIntelligence, said: “Illicit nicotine pouches are a by-product of rapid growth, fragmented regulation and limited enforcement, and they affect consumers, governments and compliant businesses alike.”
Clearer rules, stronger enforcement
The report estimates that the global pouch market is approaching US$10 billion (€9 billion), with more than 20 million consumers.
Its proposed response combines more consistent rules between neighbouring countries, simpler requirements for businesses, better data and closer cooperation on enforcement.
The authors forecast further double-digit growth over the next five years. Their warning to governments is that banning legal sales leaves the demand for nicotine pouches, and the suppliers willing to meet it, very much in business.