New turning point: British American Tobacco is about to launch Velo Plus, a synthetic nicotine bag

bag by British American Tobacco , has undoubtedly caused a stir in the tobacco industry. This move not only demonstrates BAT's active exploration of product innovation, but also arouses widespread market attention to the future development of synthetic nicotine products.

And the launch of this new product will mark BAT as one of the first major tobacco companies to explicitly adopt synthetic nicotine in its products.

Velo is a brand acquired by BAT, and its previous owner submitted an application for FDA (U.S. Food and Drug Administration) approval before the application deadline in May 2022.

The use of synthetic nicotine may bring different experiences to consumers, but it also brings new challenges to regulatory authorities. How will the FDA respond to the launch of this new product? How will it control the safety and regulatory standards of synthetic nicotine? These issues have become the focus of attention in the industry.

1. US nicotine pouch industry revenue will grow rapidly by 2030

In recent years, synthetic nicotine has been more widely used in the United States in order to circumvent the lengthy application process of the U.S. Food and Drug Administration (FDA). Previously, the FDA only had regulatory authority over natural nicotine, so manufacturers of synthetic nicotine products did not need to follow the FDA's application process. This law was amended in April 2022.
Velo Plus is a product acquired by BAT and was submitted for FDA approval by its previous owner before the application deadline in May 2022.
BAT estimates that by 2030, the size of U.S. industry-wide e-cigarette revenue will grow from the current approximately 9 billion pounds ($11.7 billion) to as much as 14 billion pounds. The company expects U.S. nicotine bag industry revenue to grow from 1.7 billion pounds to as much as 7 billion pounds during the same period.

2. British American Tobacco's advance: a global presence

It is understood that as early as late September 2024, BAT announced that it would launch synthetic nicotine liquid e-cigarettes as early as November. According to industry insiders, BAT's Korean subsidiary BAT Rothmans recently submitted a trademark application for the synthetic nicotine e-cigarette brand "Nomad" through its subsidiary Nicoventures Holding Limited.

This shows that BAT has long been paying attention to the synthetic nicotine track and has begun to actively lay out its plans. Now it is preparing to launch synthetic nicotine bags in the United States, demonstrating its keen insight into market trends and forward-looking strategic vision.

3. Advances in synthetic nicotine delivery technology

Velo Plus offers a unique nicotine experience using BAT’s proprietary nicotine delivery technology, which is designed to provide a smoother nicotine release that may provide less throat irritation and a more comfortable user experience than traditional tobacco products.

4. What are synthetic nicotine Pouches?

Synthetic nicotine pouches are made in a laboratory through chemical synthesis rather than extracted from tobacco plants. The advantage is that it can provide a uniform, neutral flavor, without tobacco-derived impurities, and with a higher purity.

However, the production cost of synthetic nicotine is relatively high, and regulatory policies are constantly changing. For example, the U.S. Food and Drug Administration (FDA) has strengthened its supervision of synthetic nicotine products and requires related products to complete a pre-market tobacco application (PMTA).

5. The difference between synthetic nicotine pouches and nicotine pouches

①Source and ingredients

Synthetic nicotine bag: Its nicotine is produced through artificial chemical synthesis. The synthesis process can accurately control the purity and content of nicotine and reduce the presence of impurities.

It is not restricted by tobacco cultivation, can provide a stable supply of nicotine, and can adjust the synthesis process according to demand to produce nicotine products with different concentrations and characteristics.

Nicotine pouches: Traditional nicotine pouches usually extract nicotine from tobacco. The content and quality of nicotine may be affected by tobacco planting conditions, varieties, and extraction processes, and there is a certain degree of volatility. In addition to nicotine, tobacco may also contain other harmful substances, such as tar, heavy metals, etc., which are difficult to completely remove during the extraction process.

②Safety and purity

Synthetic nicotine bags: Since the synthesis process can remove most impurities, the purity is relatively high. The content of harmful substances can be better controlled during the production process, so it may be considered to have relatively high safety to a certain extent.

However, the long-term health effects of synthetic nicotine are still being studied and it cannot be completely confirmed that it is absolutely safe.

Nicotine pouches: Nicotine extracted from tobacco may carry some harmful substances in tobacco. Although nicotine pouches are usually not burned, which reduces some harmful substances produced by combustion, there are still certain health risks.

Its safety is also affected by the tobacco source and extraction process, and the safety of different brands and products may vary.

③Taste and experience

Synthetic nicotine pouches: Different tastes and experiences can be customized by adjusting the synthetic formula. For example, different spices or flavorings can be added to meet the taste needs of different consumers.

Because synthetic nicotine has a higher purity, the taste may be relatively pure and will not be interfered with by other complex components in tobacco.

Nicotine pouches: The taste usually has a certain tobacco flavor. This is because nicotine comes from tobacco. Different brands of nicotine pouches may have different tobacco flavors, but the overall taste is relatively single.

④Regulation and legality

Synthetic nicotine pouches: Since synthetic nicotine is a relatively new product, its regulatory policies may vary in different countries and regions. Some countries may have strict restrictions on the use and sale of synthetic nicotine, while others may be developing relevant regulatory laws.

Its legality is also in a state of flux, and one needs to pay close attention to local laws and regulations.

Nicotine pouches: The regulation of traditional nicotine pouches is relatively mature and is subject to tobacco-related regulations in many countries and regions. Their sale and use usually need to comply with specific age restrictions, packaging requirements, advertising restrictions and other regulations.

In short, BAT's layout in the synthetic nicotine track has brought both opportunities and challenges. For BAT, by acquiring Velo Plus and launching it into the market, British American Tobacco has demonstrated its forward-looking judgment on the future tobacco market and its proactive and enterprising spirit. This move not only helps to enhance British American Tobacco's brand image, but also lays the foundation for the company's long-term development.

And the launch of the synthetic nicotine bag Velo Plus is an important step for it to expand its market share and enhance its brand competitiveness.

But at the same time, the company also needs to pay close attention to market reactions and regulatory developments to ensure the compliance and safety of its products. In the future, with the continuous advancement of technology and changes in consumer demand, competition in the tobacco industry will become more intense. Whether BAT can gain a foothold in the market with Velo Plus remains to be tested by time.