August 2026: Soluble Nicotine Products Emerge as the Next Billion-Dollar Oral Nicotine Opportunity
A new category of nicotine products is emerging alongside the rapid expansion of nicotine pouches, with tobacco companies and specialist manufacturers developing nicotine lozenges, tablets, oral strips, gels, sticks and other products designed to dissolve in the mouth.
The concept is not entirely new. R.J. Reynolds began experimenting with dissolvable oral products more than 15 years ago, launching Camel Dissolvables in U.S. test markets in 2009. The portfolio included Camel Orbs, Sticks and Strips, which were designed to dissolve in the mouth and provide nicotine without smoke, spit or litter. The products were subsequently discontinued, but the development established an early precedent for the type of formats now re-emerging in the modern nicotine market.
Reynolds later returned to the category with Revel nicotine lozenges, introduced in 2019. In 2020, the lozenges were rebranded under the VELO name, and Reynolds submitted Premarket Tobacco Product Applications to the U.S. Food and Drug Administration for the VELO dissolvable nicotine lozenges. This represented a renewed attempt by a major tobacco company to establish a commercial position in soluble nicotine alongside the emerging nicotine-pouch market.
The category is now attracting broader commercial interest. Swisher, through its Rogue brand, has developed Rogue Nicotine on Demand, a tobacco-leaf-free nicotine portfolio comprising gum, lozenges, tablets and pouches. The different formats are positioned around distinct consumption experiences, including faster-dissolving tablets and longer-lasting lozenges and gum.
The emergence of soluble nicotine is also supported by the industry’s broader investment in oral-delivery technologies. Philip Morris International acquired Fertin Pharma in 2021 for approximately $820 million, gaining expertise in oral and intra-oral delivery systems, including gums, pouches, liquefiable tablets and other solid oral systems for the delivery of active ingredients, including nicotine. Fertin remains within PMI’s Aspeya business following PMI’s subsequent reorganization of its oral-delivery operations.
Soluble products offer several characteristics that make them attractive as a modern nicotine format. They are smoke-free, vapor-free and device-free, allowing nicotine to be consumed discreetly in locations where smoking and vaping are prohibited. Their compact formats also allow manufacturers to provide defined nicotine doses without the hardware requirements associated with electronic cigarettes.
Importantly, soluble nicotine is not simply another version of the nicotine pouch. Pouches generally contain nicotine within a fibrous pouch material that remains intact during use, whereas soluble products are designed to dissolve or disintegrate in the mouth. This creates additional opportunities for manufacturers to differentiate products through formulation, dissolution time, nicotine release, flavour delivery, texture and dose.
The regulatory environment will be an important factor in determining the category’s development. Many soluble nicotine formats do not fit neatly within regulatory frameworks designed around conventional tobacco products, creating questions around their classification, nicotine content, flavours, taxation, packaging and marketing. This issue is particularly relevant in Europe, where the European Commission is reviewing the EU tobacco-control framework in response to the emergence of new nicotine products. The development of nicotine pouches has demonstrated how quickly a new oral nicotine category can establish a commercial presence before dedicated regulatory frameworks are fully developed.
For tobacco companies, soluble nicotine represents another opportunity to expand beyond cigarettes and build broader modern oral portfolios. Nicotine pouches have demonstrated the commercial potential of discreet, smoke-free oral nicotine, while soluble formats offer manufacturers additional product architectures and consumption occasions. However, the category remains at an infant stage of development, with no reliable global data available to measure its size or growth accurately. Product definitions vary across markets, and soluble nicotine products are often grouped together with nicotine pouches, traditional oral tobacco or nicotine-replacement products in industry statistics. Nevertheless, the emergence of multiple product formats and increasing participation by established industry players indicate that soluble nicotine is developing into a distinct segment of the modern oral market. Following the rapid growth of nicotine pouches, soluble nicotine products could emerge as the industry’s next billion-dollar oral nicotine opportunity.
