Company News
World's Largest Online Pouch Retailer Reports Record Sales as U.S. Volumes Surge 125%
While tobacco giants argue over factories and flavor rules, a quiet revolution is happening at checkout. Haypp Group — the Stockholm-listed retailer that operates the world's largest online nicotine-pouch stores — reported its strongest quarter since going public, with second-quarter sales up 27.7% to roughly SEK 1.18 billion (about $110 million) and its highest-ever consumer count.
The August 12 report serves as the clearest snapshot yet of a structural shift: nicotine buying is moving online, and nicotine pouches are the primary engine driving this transition.
The Numbers: U.S. and U.K. Markets Explode
Nicotine pouches now make up 71% of Haypp's total volume, with pouch volumes growing 45% year-over-year — accounting for essentially all of the company's growth. The geographic detail is the most striking component of the report: U.S. volumes more than doubled, up 125%, while U.K. volumes rose 113%.
Haypp's "growth" segment (comprising the U.S., U.K., and emerging markets) shipped 10.8 million cans in the quarter, reaching 217,000 active consumers. Meanwhile, the mature Scandinavian core continued to grow at a healthy mid-teens rate. Group-wide, active consumers hit an all-time high of 667,000.
"Haypp Group delivered another strong quarter, with new all-time highs including 28 per cent topline growth," CEO Gavin O'Dowd said.
The company stated it is solidly on track for its 2028 targets and continues to reinvest cash into expansion — including a July launch in Saudi Arabia, which it describes as the world's second-largest pouch market. The shift mirrors broader trends where Earnings Season Splits Big Tobacco between traditional products and smoke-free alternatives.
The Strategy: Buying Growth in a Land-Grab Phase
The financial report includes an honest caveat: growth is currently being bought. The reported operating margin was a razor-thin 0.8%, as the U.S. and U.K. segments still operate at a loss due to marketing spend running ahead of revenue. This represents a strategic land-grab phase; the company is betting that whoever owns the online pouch customer now will dominate the category in the future.
Why Online is Winning the Pouch War
Pouches suit e-commerce in a way traditional cigarettes never did. They are light, shelf-stable, and typically purchased in multi-can rolls. Furthermore, users tend to be brand-loyal repeat purchasers, exhibiting subscription-like behavior. Online retailers can also stock the full strength-and-flavor matrix of major brands like ZYN, VELO, and on!, whereas a typical convenience store may only carry a limited selection. This digital dominance is a key reason why Pouches Take Over the Backbar in modern retail environments.
Regulatory Hurdles and the Future for Shoppers
The flip side of this digital growth is increased regulatory attention. Online nicotine sales require rigorous age verification. Regulators worldwide are tightening these requirements; for instance, Kuwait recently banned online nicotine sales entirely, and various U.S. states continue to add shipping and ID rules. Legitimate players like Haypp invest heavily in verification technology, as their business model depends entirely on compliance. For a broader look at the landscape, see our Selling Nicotine in America: A 2026 Mid-Year Regulatory Reality Check.
For U.S. pouch users, Haypp's record quarter confirms that the online channel is where selection, availability, and price competition currently reside. Manufacturers are increasingly treating digital platforms as primary launch venues rather than afterthoughts. Shoppers should expect more strengths, more flavors, and faster availability online than at the physical counter. This trend is especially evident as Women Are the Fastest-Growing Buyers in the category.
The Bottom Line
A record quarter at the world's biggest online pouch seller isn't just a successful earnings day in Stockholm — it's evidence that the center of gravity in Tobacco Products & Smoking Accessories retail is shifting from the backbar to the browser, with pouches leading the way. For more industry updates, visit our Tobacco Guide: Pipe Tobacco, Wraps, Cigarillos & Pouches — All Articles.