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Nicotine Pouches: International Markets
Swedish manufacturer Another Snus Factory (ASF), jointly acquired by Altria Group and KT&G in 2025, has officially launched its flagship nicotine pouch brand, LOOP, in South Africa, marking a strategic move to establish a footprint across the African continent. The rollout targets major metropolitan hubs like Johannesburg and Cape Town with three signature flavor pairings. This expansion is part of a broader effort by the two tobacco majors to scale ASF’s smoke-free portfolio and benefit from the rising global demand for alternative nicotine products.
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KT&G: News
Under the strategic cooperation established in 2025, KT&G is shifting production of its “THIS” cigarette brand to the U.S. via Altria Group, while producing Altria products in South Korea. The ongoing cross-border deal enables Altria to leverage federal duty drawback tax rebates to improve the profitability of its declining cigarette business. In Q2 2026, Altria’s contract export volume surged 55% year-over-year. In turn, KT&G reduces long-distance shipping overhead by securing a stable manufacturing footprint in the Americas.
Read More: KT&G: News
South Korea: Vapes
The steep tax hike under South Korea’s revised Tobacco Business Act has more than doubled e-cigarette prices, driving consumers toward a burgeoning gray market of “nicotine-free” and synthetic analogue vapes. Investigations by the Ministry of Food and Drug Safety revealed that nearly a quarter of sampled “zero-nicotine” products were mislabeled, with many actually containing nicotine or unregulated substitutes like 6-methyl nicotine. In response to the growing health risks and tax evasion, South Korean authorities are launching a multi-agency crackdown to inspect distributors, expand toxicity testing, and introduce a unified regulatory framework.
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Turning Point Brands (TPB): Q2 2026 Results
Turning Point Brands (TPB) reported a 22.6% year-over-year surge in Q2 2026 net sales to $143 million, driven by hyper-growth in its Modern Oral nicotine pouch portfolio (FRE and ALP). However, net income dropped 75% to $3.6 million as the company absorbed heavy commercial, marketing, and distribution expenses to capture share in the fast-growing U.S. nicotine pouch market. Strong growth momentum led management to raise full-year 2026 guidance for Modern Oral net sales from $210-$225 million to $260-$270 million.
Read More: Turning Point Brands (TPB): Q2 2026 Results
PMTA: Premarket Tobacco Product Application
The U.S. FDA has authorized four new “on!” nicotine pouch products from Altria subsidiary Helix Innovations, bringing the total number of FDA-authorized nicotine pouches to 30 – including 20 ZYN (PMI) and 10 on!/on! Plus (Altria) variants. Evaluated through the agency’s PMTA pilot program, the new on! offerings – Rich Berry (2mg), Cappuccino (2mg & 4mg), and Autumn Spice (2mg) variants – were found to significantly reduce exposure to harmful chemical constituents compared to traditional tobacco products. Following the accelerated decision, the FDA plans to apply efficiency lessons learned from the pilot program to streamline future premarket reviews across other tobacco categories.
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USA: Nicotine Pouches
Altria is accelerating the expansion of its on! brand to tap into rapid U.S. nicotine pouch growth, with its new on! Plus lineup driving volume growth and category share recovery on a sequential basis. Altria plans to expand on! Plus 12mg strengths nationwide in Q3 2026 and introduce new flavors like Blueberry Mint and Mango Pineapple in Q4 2026. Leveraging baseline FDA authorizations secured in December 2025 & August 2026 and based on the new enforcement prioritization guidelines, Altria aims to streamline its future applications for additional line extensions through 2027 and beyond.
Read More: USA: Nicotine Pouches
USA: Cigarette Market
Total U.S. c-store cigarette dollar sales held flat at $50.8 billion for the 52-week period ending June 14, as a 5.6% price increase per pack (to $10.20) fully offset a 5.3% decline in volume. Alongside higher cigarette prices, macroeconomic pressures and persistent inflation have triggered widespread downtrading, driving price-conscious consumers away from premium brands and toward lower-tier discount cigarettes. At the same time, growing poly-use and shifting adult preferences continue to redirect market share toward non-combustible alternatives, establishing modern oral nicotine pouches as the fastest-growing segment in the tobacco category.
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USA: Vapes
Total U.S. c-store electronic smoking device sales fell 6.0% year-over-year to $6.22 billion, led by a 7.4% drop in core vaping products as unit volumes contracted 15.3%. The decline reflects a shift in consumer purchasing away from mainstream c-stores toward untracked channels, online outlets, and specialty retailers selling illicit disposable vapes, though a 9.3% unit price increase helped cushion c-store dollar losses. In contrast, vaping accessories surged 38.2% to $271 million, driven by growing demand for open-system modular devices and dual-use hardware compatible with both nicotine and cannabinoids.
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British American Tobacco: News
British American Tobacco (BAT) has announced leadership transitions within its Management Board, as Chief Marketing Officer Luciano Comin will step down on February 28, 2027, following a 34-year career at the company. Current APMEA Regional Director Pascale Meulemeester will succeed Comin as CMO effective March 1, 2027. To fill the regional leadership role, Ocean Spray Cranberries executive Celina Li will join BAT as Regional Director Designate for APMEA on September 1, 2026, formally assuming the position and joining the Management Board on January 1, 2027.
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KT&G: Q2 2026
KT&G Corporation delivered strong Q2 2026 financial results, with consolidated revenue rising 9.9% year-over-year to ₩1.7016 trillion and operating profit surging 18.5% to ₩414.5 billion. Growth was propelled by international combustible sales – marking a ninth consecutive quarter of volume, revenue, and profit expansion – alongside a 20.9% volume surge in domestic Next-Generation Products (NGP) driven by its flagship lil ABLE platform. Following the profit-led beat, management raised its full-year 2026 growth targets for revenue (5%-7%) and operating profit (10%-13%). Additionally, the company reinforced its aggressive shareholder return strategy by increasing its interim dividend by 43% to ₩2,000 per share alongside ongoing share buybacks and treasury share cancellations.
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India: Cigarette Market
The steep tax increase on Indian tobacco products significantly squeezed the profitability of major manufacturers – including ITC Limited, Godfrey Phillips India (GPI), and VST Industries – during Q1 FY27. Although reported gross revenues appeared to surge due to excise duty pass-through, underlying net revenues and sales volumes fell sharply, with duty-excluded sales dropping 31.5% and 18.8% for ITC and GPI, respectively. Mass-market segments bore the brunt of consumer price sensitivity, driving down profitability across the sector and raising industry concerns over a potential surge in illicit trade.
Read More: India: Cigarette Market
