Tobacco Firm Reports Surge in Nicotine Pouch Sales Amid Ban Plans

The Irish division of global tobacco company British American Tobacco has recorded a significant increase in the sales of nicotine pouches. PJ Carroll & Co Ltd reported that sales surged almost fivefold in 2024, reaching 29 million units compared to 6 million in 2023. This dramatic rise comes as the Irish government considers legislation to ban the sale of nicotine products to minors.

The company’s nicotine pouch brand, VELO, launched in June 2023, has driven this exceptional growth. According to the directors of PJ Carroll, revenues from VELO soared by 442 percent year-on-year. The brand achieved a market share of 45.9 percent in 2024, contributing to overall revenues, which increased by 11 percent from €30.53 million to €33.75 million.

Sales Growth and Regulatory Challenges

The surge in sales is attributed to strong performance in the VELO line and continued growth in vapor products, which offset a decline in traditional combustible tobacco sales. Combustible volumes decreased by 11 percent, totaling 200 million sticks in 2024. Despite this decline, the firm managed to extract value through price increases implemented in April 2024. Revenue from combustibles accounted for 71 percent of total business, down from 75 percent in 2023.

In parallel, the Cabinet has approved measures led by Minister for Health Jennifer Carroll MacNeill to develop legislation that prohibits the sale of nicotine pouches to minors and restricts advertising and display in retail outlets. This regulatory shift follows a Health Ireland survey revealing that 1 percent of the general population uses nicotine pouches, with usage rising to 3 percent among individuals aged 15 to 24.

Financial Overview and Market Trends

In terms of overall performance, PJ Carroll & Co Ltd reported gross revenues of €179.43 million for 2024, which included €145.67 million in excise duties and taxes. Pre-tax profits fell by 8 percent to €5.69 million. The company’s workforce consists of 22 employees with total staff costs amounting to €1.3 million. Directors received a total remuneration of €204,000.

The company is currently undergoing a tax audit in the Republic of Ireland, having paid €1.2 million to the Irish Revenue following year-end. Data indicates that illicit and duty-free purchases represented 37 percent of the market in 2024, according to figures from the Revenue Commissioner.

As regulations tighten in Ireland, similar measures have already been adopted in countries like Belgium, France, and the Netherlands. The shifting landscape for nicotine products reflects broader trends in consumer preferences and public health initiatives across Europe.