How nicotine pouches and vapes are reshaping tobacco and consumer habits
Tobacco companies are shifting to vapes and nicotine pouches as cigarette sales fall. The products may reduce harm compared with smoking, but they carry addiction and youth-use risks.
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By Torontoer Staff
Tobacco companies are repositioning around non-combustible nicotine products as cigarette volumes decline. Major firms such as British American Tobacco have turned to vapes and nicotine pouches to drive growth, and investors have rewarded that shift.
BAT is a clear example. After a large writedown on US cigarette brands two years ago, its shares have since rallied strongly, driven in part by its Vuse vape business and Velo nicotine pouches. The company reported selling more than 1.1 billion pouches in the US in the first half of 2025.
What nicotine pouches and modern vapes are
Nicotine pouches are small, tobacco-free sachets placed between the upper lip and gum. They deliver nicotine without combustion, smoke or ash. Vapes heat a liquid that usually contains nicotine and flavourings to create an inhalable aerosol. Both are marketed as alternatives to smoking.
Brands such as Velo and Zyn have grown quickly in markets including the US, in part because they sit outside some of the advertising and packaging restrictions that apply to cigarettes. That regulatory gap has helped sales, although several governments are moving to tighten rules and restrict youth access.
Why tobacco companies are switching focus
Cigarette consumption is declining in many countries and the original product is increasingly associated with older customers. Companies are pursuing longer-term revenue by converting smokers to alternative nicotine formats and by recruiting new users among younger adults. Investors appear to favour the recurring sales and higher growth potential of pouches and vapes compared with traditional cigarettes.
For firms long built on combustible tobacco, the pivot is also a financial strategy. Non-combustible products can attract marketing investment and partnerships not available to cigarettes, while still relying on nicotine as the primary source of dependence.
Health trade-offs and youth uptake
Public health experts note a clear distinction: alternatives that avoid smoke inhalation reduce many smoking-related harms, but they are not risk free. Nicotine is addictive and has short-term effects on attention and heart rate. Long-term health impacts of some vape ingredients and frequent pouch use remain under study.
They’re substantially less harmful than smoking, although they are not harmless.
Harry Tattan-Birch, senior research fellow, University College London
Regulatory responses are mixed. Some countries have banned pouches, while others are preparing new limits on advertising and youth access. The US has seen legal and reputational fallout from companies that marketed vaping to teenagers. That precedent has pushed regulators to pay closer attention to how pouches and vapes reach young people.
What consumers should know
- Relative risk: Pouches and vapes avoid the toxins created by burning tobacco, so they are likely less harmful than cigarettes, but they are not risk free.
- Addiction: Nicotine is highly addictive regardless of delivery method. Regular use creates dependence and can be hard to stop.
- Youth risk: Young adults have been early adopters of pouches in several markets. Reducing youth access is a regulatory priority.
- Marketing: Non-combustible products often face fewer advertising limits than cigarettes, which affects visibility and appeal.
- Regulation: Rules vary by country and are changing. Check local laws on sales, age limits and advertising.
If the goal is quitting nicotine entirely, evidence supports counselling and approved cessation aids such as nicotine replacement therapy under medical guidance. For smokers who cannot or will not quit, switching to non-combustible products may reduce some harms, but it also risks prolonged nicotine dependence.
How to approach these products practically
Limit exposure if you do not use nicotine. If you are a smoker considering a switch, discuss options with a healthcare provider. For parents and guardians, watch for new products and flavours that may appeal to teens and young adults, and ensure devices and pouches are kept out of reach.
The shift from cigarettes to pouches and vapes is reshaping both industry strategy and everyday consumption. Consumers should weigh reduced inhalation harm against the real risk of continued addiction, and remain alert to changing rules and evidence as regulators and researchers catch up.
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