Special Report | The Global Flavor Shift: How Changing Tastes Are Driving Nicotine Product Innovation

[Taco Tuinstra, 2Firsts] The global nicotine industry is undergoing a dynamic transformation driven by shifting consumer preferences, regulatory developments and a surge in next-generation products (NGPs). Yet even as new product categories attract the most attention, the traditional tobacco business, too, continues to evolve, offering suppliers new opportunities and consumers new products at regular intervals.

The flavor business is a case in point, with plenty of developments in both NGPs and legacy nicotine products. During 2Firsts’ Global NGP Market Trends Forum on June 6, representatives of Hertz Flavors, FLAVORIQ and their holding company, Arethia, highlighted key trends in shisha, cigarettes, nicotine pouches, heated tobacco products (HTPs) and vapes.

A global flavor house with more than 70 years of experience, Arethia caters to two product segments: food and beverage, and inhalation and active ingredients. The latter category includes nicotine products and is served by Hertz Flavors, with roots in the traditional tobacco business, and FLAVORIQ, which was established in 2014 to develop vape flavors. Arethia has customers in more than 80 countries and four offices and two production hubs across Germany, Switzerland, the United Arab Emirates and Indonesia.

Cigarettes: Niche Trends

Despite strong restrictions on combustible tobacco products worldwide, niche trends are still emerging in specific markets, according to Hertz Flavors Sales Manager Mohammed Schelebi. For example, “Aroma cigarettes”—cigarettes with 10 to 20 times the usual flavored dosage—are popular in Russia, Romania and Ukraine and gaining momentum throughout the Middle East and North Africa (MENA). These products include fruity flavors, such as apple, cherry and berry, and traditional flavors (e.g., chocolate, coffee, caramel). To enhance flavor and create a smoother smoking experience, manufacturers of such products often use sweetened tipping paper.

Shisha: A Hotbed of Flavor Innovation

The shisha category lends itself well to flavor innovation.

In Europe, shisha smokers have been flocking to fruity mixes with high flavor dosages. Consumers here prefer vibrant, bold profiles over more traditional ones. Bestselling products include Africa Queen by O’s and Ice Kaktuz by Holster.

In the MENA region, by contrast, shisha smokers tend to prefer traditional flavors such as double apple, grape mint, lemon mint and gum. The region is not only a flavor stronghold but also emerging as a global innovation hub for shisha, driving trends that influence markets worldwide.

Latin America is a dynamic and experimental market with lots of room for innovation and product introductions. After collapsing in 2020, the region’s shisha market is growing rapidly again, thanks in part to a decrease in vaping.

Nicotine Pouches: Explosive Growth and Sensory Exploration

Pouches are currently the fastest growing segment within the nicotine industry. According to data presented by Arethia, the global pouch market expanded at a compound annual growth rate of 56% between 2020 and 2025, outpacing other NGPs like vapes and heated tobacco.

Hertz Flavors Sales Director Christine Vogelsang attributes this growth to increased demand for discreet and fast-acting products, flavor bans in other product categories and a surge in innovation.

At 60 percent of global sales, the U.S. remains the world’s largest nicotine pouch market, yet many flavor trends emerge in Europe due to that continent’s hypercompetitive nicotine pouch market, according to Vogelsang.

Essential flavor profiles include mints, cinnamon and berry, typically combined with a cooling effect. Creative combinations—like tropical fruit with black pepper or jalapeño or mint with ginger or yuzu—offer multi-sensory experiences. Flavorists have also been adding tingling, sweet-salty contrasts and even warming sensations to pouch products to enhance consumer appeal.

HTPs: Hybrid Experiences and Regional Customization

HTPs are becoming increasingly sophisticated, both technologically and in flavor design. Such products offer alternatives to traditional smoking by heating tobacco or substitute products without combustion.

According to Vogelsang, European and North American consumers favor fruit and menthol variants, with innovations like crush capsules enabling on-demand flavor shifts. Products like Ploom’s EVO Green allow users to switch between tobacco and menthol or fruit with a single action.

Consumers in Asia have access to a broader range of flavor profiles than their counterparts in Europe and North America. Manufacturers cater to local preferences with exotic, region-specific flavors. Sixhill’s kretek-flavored heat sticks in Indonesia are a notable example of this tendency. A growing trend is the emergence of tobacco-free variants, such as Glo’s Veo, which uses rooibos leaves, and dual-heating systems that combine tobacco and e-liquid flavors in the same device to offer a hybrid flavor experience.

Vaping: The Sweet, Strong and Smart Evolution

The vape market is characterized by the rise of intense flavor profiles. Originally a hallmark of disposable vapes, the trend has now spread to refillable products and pods. According to FLAVORIQ Sales Director Lorna Lopez, consumers increasingly demand extra strong, extra sweet flavors, often in combinations of two or three fruits with sweeteners and cooling agents—sometimes with an added sour note.

Regional differences are pronounced: 

·In Europe, consumers prefer fruity flavors with complex fusions, such as watermelon-strawberry-kiwi or blueberry-cherry-cranberry, gaining traction. 

·Tobacco flavors and extractions are also becoming more popular. In North America, simple fruit combinations (e.g., strawberry-mango) and mint prevail, along with tobacco flavors. 

·In Asia, vape flavor preferences are often inspired by popular beverages and desserts, with consumers flocking to products mimicking the taste of bubble tea, cheese and oats, for example.

Technological innovation is also reshaping the vape segment. Smart devices with app control, gamification features, Bluetooth, and music integration are redefining user engagement. On the sustainability front, companies are exploring reusable components, replaceable coils and even paper-based devices, like VYKO, a disposable vape brand.

Regulation

Unsurprisingly, the nicotine flavor landscape is increasingly constrained by regulation. 

The EU banned characterizing flavors in 2016 and menthol in 2020. Menthol flavor remains legal at the federal level in the U.S. after the Trump administration withdrew a long-debated ban in January 2025. However, the compound is illegal in several prominent states, including California. Due to the strict rules in many markets, large tobacco companies have limited investment in the traditional cigarette business, according to Stella Monkediek, head of regulatory affairs at Arethia. The focus, she says, is on NGPs.

Of course, the future of the NGP business, too, is heavily intertwined with regulation, especially in lucrative markets such as the U.S. and the EU. The U.S.’ notoriously cumbersome and expensive marketing authorization system for nicotine products has contributed to a significant illicit vape market. To date, the FDA has approved only tobacco-flavored and menthol-flavored e-cigarettes, which means all other flavored vapes on that market are illegal. However, the agency has authorized several flavored nicotine pouches.

The EU, meanwhile, is characterized by a patchwork of national rules. While there is no union-wide ban on flavorings for vapes or nicotine pouches, several member states have outlawed non-tobacco flavors, set ingredient standards or established nicotine limits. France, Belgium and the Netherlands have banned nicotine pouches altogether. 

Monkediek says the EU faces pressure to harmonize legislation in the third version of its Tobacco Product Directive, the draft of which is expected by the end of this year.

The MENA region features moderate regulations, with flavor use permitted in many markets. By contrast, in the Eurasian Economic Union, many states have banned vapes and pouches. The picture in Latin America is mixed, with some countries enforcing bans and others allowing moderate use. In Asia Pacific, meanwhile, strict regulation or outright bans dominate, with little sign of easing.