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Synthetic Nicotine – More Expensive but More Sustainable

Synthetic Nicotine – More Expensive but More Sustainable

Synthetic nicotine has the potential to make nicotine use more sustainable in the long run, according to Markus Lindblad, Head of Communications at Haypp. This is despite synthetic nicotine being significantly more expensive to produce, potentially shrinking profit margins for many manufacturers.



It’s a cost that could be worth every penny in the end. And for customers, it doesn’t have to be much more expensive, 
– Markus Lindblad, Head of Communications at Haypp

But what exactly is synthetic nicotine? And what would it mean to replace traditional nicotine with artificial alternatives in smokeless nicotine products?

Synthetic nicotine has been on the market for a long time. In essence, it involves creating a molecule with the same composition and properties as nicotine derived from tobacco. This molecule can then replace nicotine extracted directly from the tobacco plant. Although the technology has existed for years, it has not gained widespread adoption—something that started to change a few years ago. It began in the United States as part of a relatively unsuccessful attempt to regulate the booming e-cigarette market.

Expensive and Slow PMTA Process

The U.S. Food and Drug Administration (FDA) sought to regulate all e-cigarettes as tobacco products, arguing that nicotine originated from the tobacco plant. This decision disrupted the already established market. Many manufacturers, particularly small- to medium-sized businesses, faced a costly and slow process to apply for authorisation to sell their products. Known as the PMTA process, it could cost companies millions of dollars without guaranteeing product approval.

"The loopholes in the existing U.S. legislation were what truly paved the way for synthetic nicotine. It became a way to bypass the laws," says Markus Lindblad.

A Go-To Solution

This marked the first time synthetic nicotine had a viable market. While scientists have long been able to recreate the chemical compound "nicotine" in a lab, the issue has always been cost. The chemical processes required significant resources, making it much cheaper to extract nicotine directly from tobacco plants. This is why tobacco-derived nicotine became the go-to solution for manufacturers across the industry, including pharmaceutical companies (patches, gum), tobacco companies, and e-juice producers.

The cost is about double compared to extraction from plants, which deters many manufacturers,
– Markus Lindblad, Head of Communications at Haypp

Choosing Synthetic Nicotine Despite Costs

Facing regulations that threatened their businesses, many manufacturers decided to bear the extra cost of synthetic nicotine to replace “natural” nicotine. This allowed them to continue delivering products to a growing customer base that used e-cigarettes with nicotine to stay smoke-free.

Synthetic Nicotine Didn’t Require Registration

Meanwhile, a new product category—disposable vapes—emerged on the market.

These simple, accessible vape products quickly became popular alongside cigarettes in stores across the U.S. Few manufacturers, mostly based in China, were willing to go through the lengthy and expensive FDA approval process. Instead, they opted to bypass regulations.

Synthetic nicotine was the solution—it wasn’t derived from tobacco plants and, therefore, didn’t require registration. For a time, a significant portion of vape products contained synthetic nicotine for this very reason.

This legal workaround didn’t last long. Within a year, authorities gained the ability to define synthetic nicotine as equivalent to a "tobacco product," shrinking the market for traditional synthetic nicotine again. However, synthetic nicotine had now been tested in the real world and proved just as popular as the “natural” version.

Today, synthetic nicotine is becoming relevant for other smokeless nicotine products, particularly nicotine pouches.

Recognising the Benefits of Synthetic Nicotine

According to Markus Lindblad, it’s time for more manufacturers to consider synthetic nicotine, especially for sustainability reasons.

"It requires significantly fewer resources throughout the production and transportation chain to use synthetic nicotine. That’s why I hope it takes a larger share of the market, both in vapes and nicotine pouches."

The End of Tobacco Farming?

Lindblad suggests that it’s increasingly important for the nicotine industry to address one of the most persistent arguments against harm reduction: the connection to "dirty and unnecessary" tobacco farming.

Tobacco farming still creates challenges for local populations, even though conditions have improved over the years. A shift to synthetic nicotine would eliminate that issue. Smokeless nicotine products already place significantly less strain on society in terms of resources, but if the entire process could take place in a lab, it would be as sustainable as possible. That would be a win for everyone,
– Markus Lindblad, Head of Communications at Haypp

Cost Concerns: Impact on Companies and Consumers

But what about costs? Wouldn’t this lead to higher expenses for both companies and users?

"Not necessarily. The price per can doesn’t have to be much higher," Lindblad argues. "The cost of nicotine is only a small part of the overall price. For manufacturers, it’s different, of course, depending on their circumstances. For large producers, where every extra cent impacts profit margins, the difference can add up significantly if you’re selling a billion cans. But for smaller manufacturers, it’s not as critical. In my opinion, it’s a cost that could be worth it in the long run."

To learn more about synthetic nicotine, check out “What is Nicotine? The Ultimate Guide” article on Nicokick.  



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