Haypp Group CEO Unpacks Nicotine Insights on New Approaches Conference
On September 18, Gavin O'Dowd, CEO of Haypp Group, delivered a keynote speech at the New Approaches Conference 2023 in New York. The conference brings together public health, tobacco control, technology, and innovation experts to discuss advances in tobacco harm reduction and the move towards improved global health and appropriate regulatory systems.
O'Dowd's keynote speech was titled "Consumer Demand for Innovation in Nicotine", sharing recent data and insights from the Swedish and US markets. Haypp Group has over four thousand data points per customer and is the number one insights provider in the industry.
Some insights O'Dowd shared included flavouring and its role in converting smokers to nicotine pouches, as well as minimising youth recruitment to nicotine products.
In Sweden, there is a distinct overrepresentation of former smokers opting for fruity-flavoured nicotine products, illustrating the appeal these flavours hold for individuals transitioning away from traditional tobacco. The data shows that mint-flavoured nicotine products are particularly popular among younger demographics who've never smoked. This underscores the importance of understanding consumer behaviour to ensure products are responsibly marketed and regulations adequate and appropriate for the desired objective.
On a brighter note, fruity flavours have proven to be the most successful in aiding smokers' transition from combustion tobacco without luring younger demographics to nicotine — a promising insight for companies looking to promote healthier alternatives without attracting unintended audiences.
O'Dowd also touched upon the growing prominence of the offline and online US nicotine pouch market.
The US market has witnessed an explosive growth of +1,400% in just four years, showcasing the increasing demand and acceptance for such products. Already dwarfing its European counterparts, the US market is seven times bigger than Sweden's, making it a prime focus for global players. Despite its current dominance, the US market is still in its infancy, with massive potential for growth, especially in online sales.
Finally, O'Dowd looked into the crystal ball, presenting three predictions for the nicotine industry in the coming three years:
- Mint, the current dominant flavour, will lose its top spot, making way for innovations in taste.
- The most significant and transformative innovation will likely come from a small entity, having less than 100 employees, underlining the value of grassroots innovation.
- The largest Stock Keeping Unit (SKU) has yet to hit the market, unseen products will revolutionise the industry.