North American nicotine market: Combustible tobacco dominates, with new products growing

The North American nicotine market, e-cigarette/heating non-combustion products(HNB) and modern oral cigarette sales are growing, combustible tobacco products still dominate, and the illegal sale of disposable e-cigarette products is prominent.


The market is constant, but it is also unknown. Although the nicotine market is still profitable, it is changing. As more big tobacco companies embrace the next generation of products: heating without burning products(heat not burn oem), sales of combustible tobacco products will suffer. The changing regulatory environment will also continue to be a major factor affecting the North American nicotine market.


According to Statista, the market value of the US nicotine market will reach $107.5 billion in 2024, and this market is expected to achieve a compound annual growth rate of 0.62% between 2024 and 2028. In this market, the largest share is still combustible cigarettes, which are expected to achieve $82.7 billion in revenue in 2024. The Marlboro brand continues to dominate cigarette sales in the United States with a 50% market share.


E-cigarette revenue is expected to reach $8.8 billion. Statista expects the e-cigarette market to grow at an annual rate of 3.24% from 2024 to 2028. Retail sales of nicotine packs have also seen unprecedented growth. According to Euromonitor, the U.S. nicotinic bag market generated $8.58 billion in revenue in 2023, compared to just $7.23 billion the previous year. By 2027, the modern oral nicotine market in the United States is expected to reach $11.03 billion.


Nicotine packs were approved for sale in Canada as a natural health product on July 18, 2023. Modern oral nicotine bags are currently not covered by the Federal Tobacco and e-Cigarette Products Act and the Ontario Smoke-Free Act of 2017, which regulates tobacco and electronic products by restricting their advertising, display and public use. However, this is expected to change soon.


Speaking at the TPE (Total Products Expo) educational symposium in Las Vegas from January 30 to February 2, Brad, Executive Vice President of MARC Research (MARC Research is a software, advanced nonlinear finite element software). Brad Seipel, chief executive of the Tobacco industry, points out that many next-generation tobacco products have been on the market for more than a decade. He said innovation in the industry is focusing on reducing tobacco harm and moving away from traditional tobacco. "We are now living in a post-tobacco market," said Brad Seiper. It's a nicotine market."


The future of nicotine products remains promising. Brad Seiper said that because the popularity and use of new nicotine products in the North American market has not been improved, disposable e-cigarettes and heating non-combustion products(heat not burn oem) have a lot of room for growth.