Danish Study Warns Proposed Nicotine Pouch Regulations Could Drive Up Smoking Rates, Economic Losses

Dec.05.2024
Danish Study Warns Proposed Nicotine Pouch Regulations Could Drive Up Smoking Rates, Economic Losses
A study reveals that Denmark's proposed nicotine pouch regulations may undermine the country's progress in reducing smoking rates since 2018 and predicts that by 2030, the Danish retail industry could lose up to $85 million.

On December 4, the American Tholos Foundation announced a groundbreaking study in collaboration with IPSOS and Harvard Business School Economics that reveals the risks of Denmark's proposed regulation to limit the nicotine content in pouches to 9 milligrams per pouch.

 

A study shows that if the proposal is implemented, half (50%) of current nicotine pouch users will choose other purchasing channels, including online platforms or buying across the borders of other EU countries; one-fifth (18%) of users may switch back to smoking; the proposal also threatens Denmark's achievement of reducing smoking rates from 19% in 2018 to 14% by 2023.

 

A study has found that three-quarters (75%) of users choose nicotine pouches for health reasons, primarily to reduce or quit smoking; one-third (33%) of adults believe these products are a safer alternative to cigarettes; proposed restrictions could severely undermine strategies to reduce smoking rates.

 

According to the study, if the new regulations are implemented, the retail industry in Denmark could lose 400 million Danish kroner (approximately 57 million US dollars) by 2025, with this loss potentially increasing to 600 million Danish kroner (85 million US dollars) by 2030. It is estimated that tax revenue will decrease from 296 million Danish kroner (42 million US dollars) in 2025 to 435 million Danish kroner (62 million US dollars) in 2030.

 

More than half of Danish adults oppose the proposed restrictions on nicotine, with 80% of users believing that nicotine pouches are crucial for keeping them away from cigarettes.

 

"These findings underscore the potential for significant consequences in terms of public health," said the Tholos Foundation's Director of Consumer Issues, Tim Andrews. 

 

"The proposed nicotine limit in nicotine pouches risks reversing hard-won progress in reducing smoking while creating new challenges, including black market growth and substantial economic losses."

 

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