Analysis of the Current Situation and Prospects of nicotine pouch in the South American Market

Introduction

In recent years, as global tobacco control policies have tightened and consumers' health awareness has increased, snus (Nicotine Pouches) as a substitute for traditional tobacco has gradually entered emerging markets. As an important region for tobacco consumption, South America has attracted much attention for its market potential. This article will explore the current development status and future trends of snus in South American countries from the perspectives of market size, consumer groups, competitive landscape and challenges.

1. Overview of the South American Tobacco Market

South America is one of the major regions for tobacco consumption in the world, with traditional cigarettes, cigars and hand-rolled cigarettes dominating for a long time. Take Brazil, Argentina and Chile as examples:

Brazil: The world's fourth largest cigarette market, but the smoking rate has continued to decline in recent years (from 18% in 2006 to 12% in 2022).

Argentina: The smoking rate is about 22%, but the strict public smoking ban policy drives the growth of demand for substitutes.

Chile: Strict tobacco control regulations, high cigarette prices, and consumers are more receptive to low-priced substitutes.

Against this background, snus has become a new choice for some consumers with its characteristics of "no smoke and no ash" and "hidden use".

2. Consumer groups and demands of snus

Currently, the core users of snus in South America are concentrated in two groups:

Young urban groups: Millennials and Generation Z who pursue new things and prefer the convenience and diverse flavors of snus (such as mint and fruit flavors). Under the influence of social media, snus is regarded as a "trend symbol", especially in big cities such as Sao Paulo, Brazil and Buenos Aires, Argentina.

Middle-aged users with strong health awareness: People who try to reduce the frequency of smoking or quit smoking use snus as a transition tool.

Some users are driven by price. For example, in Chile, a box of snus (about 20 packs) costs only 1/3 of traditional cigarettes.

3. Market competition pattern

Dominated by international brands:

Swedish brand "Snus" (such as General, LYFT) entered South America through cross-border e-commerce, focusing on the high-end market.

American brands ZYN and VELO and some Asian brands like Nuplus have deployed convenience stores and online channels through local agents.

Localization challenges:

South American consumers are highly loyal to traditional tobacco and prefer strong flavors (such as strong-flavored tobacco in Argentina).

International brands need to adjust their formulas (for example, launching localized flavors such as yerba mate and coffee) to meet demand.

E-cigarette squeeze:

The popularity of e-cigarettes in Brazil, Mexico and other countries has increased rapidly, and their "smoke feeling" is closer to traditional cigarettes, forming competition with oral cigarettes.

4. 4. Future Opportunities and Trends

Healthy demand drives growth:

The obesity rate in South America remains high, and the trends of sugar control and tobacco control are superimposed. Low-nicotine or tobacco-free oral cigarettes may become new selling points.

Localized production reduces costs:

International brands may cooperate with South American manufacturers to build factories to reduce tariffs and transportation costs (such as the policy advantages of the Chilean Free Trade Zone).

Differentiated marketing strategies:

For young groups: enhance brand exposure through sponsorship of music festivals and sports events.

For people who quit smoking: cooperate with medical institutions to promote its function as a "harm reduction tool".

Conclusion

Snuff is still in its infancy in the South American market, and its development depends on policy relaxation, consumer education, and localized product innovation. Despite facing competition from both traditional tobacco and e-cigarettes, driven by health trends and young consumer culture, this market segment may become a new force that cannot be ignored in the South American tobacco industry.

Data source: Euromonitor, WHO Global Tobacco Report, and statistics from health ministries of South American countries.