Observation | As China’s Nicotine Pouch Supply Chain Cools, Market Focus Accelerates Abroad

Aug.28
Observation | As China’s Nicotine Pouch Supply Chain Cools, Market Focus Accelerates Abroad
China’s nicotine pouch sector saw a sharp decline in exhibitors and traffic. Insiders cite tighter regulation and rising overseas competition, with many firms turning to Europe, the U.S., and the Middle East, and some building factories in Indonesia for growth.

Shenzhen, August 27, 2025 - From August 26 to 29, the 6th Vape Industry Chain Exhibition was held in Shenzhen, where 2Firsts visited the venue and conducted research on the latest trends in the e-cigarette supply chain.

 

At last year's exhibition, nicotine pouches were experiencing rapid growth, with a variety of related companies such as non-woven fabric, packaging, and manufacturing equipment showcasing their products. The booths were crowded with visitors, making it a highlight of the event and demonstrating the high level of interest in this product category within the industry at that time.

 

However, there has been a noticeable change in the situation this year. The number of exhibitors related to nicotine pouches has sharply decreased, and the popularity of exhibitors' booths has also significantly declined. Industry insiders generally believe that tightening regulations in China, coupled with intensified overseas competition, have led to a cooling of the overall enthusiasm of the nicotine pouch industry chain compared to last year.

 

A supplier of nicotine pouch packaging equipment told 2Firsts that their business focus has now shifted to overseas markets, primarily expanding growth opportunities in Europe, the United States, the Middle East, Eastern Europe, and Russia. At the same time, the source revealed that domestic companies have purchased equipment to establish a nicotine pouch production base in Indonesia, in order to cope with domestic policy restrictions and take advantage of the relatively relaxed industrial environment in Southeast Asia.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

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