KT&G Develops Nicotine Pouches, Prepares Pilot Production Line
According to South Korean media reports, KT&G is advancing the research and development of nicotine pouches and has already begun preparing a pilot production line. The company stated that this business initiative remains in its early stages of development, with no definitive details finalized yet; while products such as nicotine pouches are indeed within the scope of evaluation, specific plans for their launch—whether domestically or internationally—have not yet been concretized.
Key Highlights
- South Korean tobacco giant KT&G is developing a smokeless nicotine product designed for oral nicotine absorption and is preparing a pilot production line for this purpose.
- The associated pilot production equipment will be supplied by PNT, a South Korean manufacturer of battery and display equipment.
- KT&G noted that the business remains in its early developmental phase; although products like nicotine pouches are under evaluation, specific launch plans for either domestic or international markets have not yet been finalized.
- Nicotine pouches currently lack formal sales authorization in South Korea; consumers primarily acquire them through overseas direct purchasing or unofficial channels.
KT&G Moves Forward with Nicotine Pouch R&D
April 8, 2026. According to a report by the South Korean media outlet Thelec, KT&G is moving forward with its nicotine pouch business and is currently preparing a pilot production line to support its R&D efforts.
Focus on Oral, Smokeless Nicotine Product Development
According to South Korean media reports, KT&G is developing a smokeless nicotine product that facilitates nicotine absorption through the oral cavity. The necessary pilot production equipment for this project will be supplied by PNT, a company specializing in battery and display manufacturing equipment. This marks the first confirmed instance of KT&G establishing production facilities for such products within South Korea.
KT&G stated that this business initiative is currently in its nascent stages of development, and no final details have been determined yet. The company explained that it has long been preparing a portfolio of “next-generation tobacco products”; in addition to e-cigarettes and heated tobacco products, it is evaluating various other product categories—including nicotine pouches. However, the company emphasized that specific launch plans for these products—whether for the domestic South Korean market or for overseas markets—have not yet been finalized.
Understanding Nicotine Pouches and Their Manufacturing Process
The reports highlight that nicotine pouches are considered the quintessential example of an oral nicotine product.
These products are designed to be placed between the gum and the lip, allowing nicotine to be absorbed into the body through the oral mucosa without undergoing any combustion process.
Last year, KT&G participated in the acquisition of a European nicotine pouch manufacturer, signaling its intent to enter this specific market segment.
The manufacturing process for nicotine pouches differs significantly from that of traditional cigarettes. The manufacturing process involves the precise metering, mixing, granulation, and drying of ingredients—such as nicotine, fillers, and flavorings—followed by the filling of fixed doses into small pouches. The critical element lies in the design of the filling material, which is engineered to ensure that nicotine is released at a controlled rate upon contact with saliva.
Global Competition Intensifies in Nicotine Pouch Market
Reports indicate that competition surrounding nicotine pouches is intensifying within the global market. Philip Morris International (PMI) owns the nicotine pouch brand Zyn, which commands a 74.00% market share in the United States; meanwhile, British American Tobacco (BAT) is establishing its presence in the European and U.S. markets through its Velo brand.
PMI’s financial performance is also rapidly reflecting these trends. According to reports, the company’s smoke-free business now accounts for over 40.00% of its total revenue. In the fourth quarter of 2025, shipments of nicotine pouches reached 196 million cans—a year-on-year increase of 19.00%—while cigarette sales declined by 1.50% during the same period.
KT&G Expands Through Overseas Acquisitions
KT&G is also making preparations to enter this market.
Reports state that last year, the company partnered with the U.S. tobacco firm Altria to jointly acquire ASF AB and ASF AS—nicotine pouch manufacturers based in Sweden and Norway, respectively. The acquisition was valued at approximately 1.761 billion Swedish Kronor (equivalent to approximately US$40.503 million), representing a transaction worth roughly 270 billion Korean Won.
Regulatory Barriers Limit Domestic Sales in South Korea
According to reports, KT&G’s oral nicotine business aligns with the broader trend of global market expansion; however, within South Korea, the pace at which this business advances is expected to be contingent upon the establishment of necessary institutional and regulatory frameworks.
Under South Korea’s Tobacco Business Act, nicotine pouches may only be sold by licensed operators. As there are currently no formal sales licenses issued in South Korea, consumers primarily acquire these products through direct overseas purchases or via informal channels.
