Spain’s Nicotine Pouch Market to Surge 60% by 2026

The Spanish market for nicotine pouches is projected to experience explosive growth, with sales expected to surge by 60% to reach 8 million cans in 2026, up from 5 million last year. Mónica Andrade, President of the Association of Nicotine Pouches (ABN), reports that between 20 and 30 brands are currently competing in this nascent sector. Initially driven by tourist demand, the product is now rapidly gaining traction among domestic consumers seeking tobacco-free alternatives.

Regulatory Friction: The 0.99mg Proposal

Despite the market’s trajectory, the industry faces an existential regulatory threat. The Spanish Ministry of Health is preparing new regulations that propose capping the nicotine content at just 0.99 milligrams per pouch. Andrade warns that this drastic reduction amounts to a “de facto prohibition” of the entire category. Currently, pouches sold in Spain contain between 5 and 20 milligrams of nicotine.

To contextualize the proposed cap, the ABN cites a report from the German Federal Institute for Risk Assessment, which concludes that a 16.6mg pouch delivers a blood nicotine concentration comparable to smoking a single combustible cigarette. Industry advocates argue that capping the strength at 0.99mg will eliminate viable alternatives for adult smokers, inevitably driving consumers toward the illicit market or back to highly harmful combustible tobacco.

Fiscal Burden and Responsible Retailing

While nicotine pouches remain largely unregulated in terms of product standards, they are already heavily taxed. The Ministry of Finance (Hacienda) imposes a specific excise duty of €0.10 per gram. For an average can costing €5, this special tax accounts for 28% of the retail price. When combined with VAT, the total tax burden reaches nearly 49%.

The ABN is advocating for a “risk-proportionate” regulatory framework. They propose that pouches should only be sold in authorized tobacconists (estancos) with strict age verification to prevent youth access. Furthermore, the association is calling for a staggered, lower tax burden that reflects the product’s non-combustible nature, arguing that treating pouches identically to cigarettes undermines public health harm reduction strategies.