Data Reading | Altria: on! Nicotine pouch sales performance hits best in nearly a year, NJOY shipments reach 14.3 million

Data Reading | Altria: on! Nicotine pouch sales performance hits best in nearly a year, NJOY shipments reach 14.3 million

Altria Group's latest financial report shows that in the first half of 2024, on! Nicotine bag shipments increased by 35% year-on-year, and market share continued to rise; NJOY product shipments and US retail share have also grown steadily since the acquisition. Although the group's net income has declined slightly, the performance of new product lines has shown a positive trend.

 

Recently, Altria Group, Inc. released its performance report for the second quarter and first half of 2024. Among them, on! Nicotine bag shipments in Q2 reached 41.2 million cans, a year-on-year increase of 37.3%; and the total shipments of NJOY consumables and equipment in Q2 reached 14.3 million.

The two supremes sorted out the market performance of Altria Group's on! Nicotine bags and NJOY in the past year, aiming to deeply analyze its prospects in the oral cigarette/electronic cigarette market.

 

on! Nicotine pouch shipments have continued to rise for four consecutive quarters

 

From Altria Group's second quarter and first half of 2024 performance reports, it can be seen that on! Nicotine pouches, as a smokeless nicotine product, have continued to rise in shipments and market share in the US snus market for four consecutive quarters.

Specifically, on! The total shipments of nicotine bags in the second quarter of this year reached 41.2 million cans, a year-on-year increase of 37.3%; it occupied 8.10% of the US oral tobacco market share, a year-on-year growth rate of 1.20%.

 

In the first quarter of this year, on! The total shipments of nicotine bags also reached 33.3 million cans, a year-on-year increase of 32.1%; it occupied 7.10% of the US oral tobacco market share, a year-on-year growth rate of 0.70%.

 

Looking back at 2023, in the fourth quarter, on! The total shipments of nicotine bags were 30.4 million cans, a year-on-year increase of 32.8%, and the market share was 6.90%, a year-on-year growth rate of 1.10%.

 

In the third quarter of 2023, on! The total shipments of nicotine bags were 28.7 million cans, a year-on-year increase of 36.7%, and the market share remained at 6.90%, with a year-on-year growth rate of 1.70%.

 

As of the first half of 2024, on! The shipments of nicotine bags have increased by 35% year-on-year.

 

In the past four quarters, on! The shipment volume of nicotine pouches has maintained a year-on-year growth rate of more than 30%, and its overall market share has also been on the rise. Although the year-on-year growth rate of the product's market share in the US oral tobacco market declined in the first quarter of this year, in the second quarter, on! Nicotine Pouches reached a two-year high in terms of shipment volume, year-on-year growth rate of shipment volume, and market share.

 

Regarding the market performance of on! Nicotine Pouches in the past year, the two supremes compared it with the market performance of ZYN Nicotine Pouches under Philip Morris International (PMI).

From the third quarter of 2023 to the first half of 2024, ZYN nicotine bags have achieved four consecutive quarters of growth in the US market. Although the year-on-year growth rate and quarter-on-quarter growth rate have declined in the second quarter of 2024, the overall growth momentum remains strong. By the first half of 2024, ZYN nicotine bag shipments have increased by 63.5% year-on-year.

 

As a smokeless nicotine product, nicotine bags are highly accepted by American consumers, and these products have also achieved significant market share in the American market.

On June 1, 2023, Altria Group completed its acquisition of NJOY and achieved its sales growth by strengthening NJOY's global supply chain, filling retail inventory gaps, and expanding distribution channels.

 

Specifically, in the third quarter of 2023, NJOY's total shipments of equipment and consumables were 7.5 million units. By the fourth quarter of 2023, NJOY's shipments of equipment and consumables increased to 12 million units, a 60% increase from the previous quarter. , while its retail share in the United States increased to 3.70%.

 

Time comes to 2024. In the first quarter, NJOY's equipment and consumables shipments increased slightly to 11.9 million units, a month-on-month increase of 0.6%, and its retail share further increased to 4.30%.

 

In the second quarter of 2024, shipments increased significantly to 14.3 million units, a quarter-on-quarter increase of 1.3%, with retail share reaching 5.50%, and market share continued to grow.

 

It can be seen from these data that between the fourth quarter of 2023 and the second quarter of 2024, NJOY maintained the growth of shipments while steadily increasing its retail share in the US e-cigarette market.

 

Altria Group's second quarter and first half performance report also showed that in the first half of 2024, the group's net income fell by 3.6% to US$11.8 billion, and revenue after deducting consumption tax decreased by 2.0% to US$10 billion. The revenue decline was primarily due to lower revenue in the Smokable Products segment, partially offset by higher revenue in the Oral Tobacco Products segment.