New Zealand: Government may legalize nicotine pouches despite health warnings

In March 2024, the New Zealand government approved in principle the legalization of oral nicotine products (ONPs), in accordance with a commitment made in the coalition agreement between the National Party and NZ First. This agreement also included the repeal of certain anti-smoking legislation and a tax break of NZ$293 million for heated tobacco products.

Government documents published in September 2026 indicate that the Ministerial Committee on Social Policy, under pressure from the tobacco and nicotine lobby, approved new proposals favorable to the industry and its new products. Independent experts warn that New Zealand's public health policies have been weakened by this industry interference for years and that it jeopardizes past progress in reducing prevalence.[1].

A document outlining the demands of the tobacco industry

A large part of the document presented by Deputy Health Minister Casey Costello focuses on the growth of the illicit tobacco market. The government believes that, without new measures, New Zealand could experience a parallel market of a size comparable to that of Australia. However, the extent of these illicit markets is highly contested. by independent Australian experts who have deciphered the tobacco industry's strategy of using this objection to weaken public health policies. The New Zealand document more discreetly addresses a second set of legislative provisions that authorizes the marketing of nicotine sachets, a decision that has provoked significant opposition from public health stakeholders.

As with the 2024 discussions, the warnings from health experts, including within the Department of Health, regarding the legalization of these products are not included in the proposals presented by Casey Costello.

This is not the first time that Minister Casey Costello, who has close ties to the tobacco industry, implements a policy contrary to the interests of the health it is supposed to defend.

The warnings issued by health experts focus in particular on the cancer risks associated with certain products, the development of nicotine addiction, particularly among adolescents and non-smokers, as well as on marketing practices targeting young people already observed in other countries.

The nicotine sachet market is particularly lucrative and booming for the industry

Nicotine pouches represent a particularly attractive market for manufacturers due to their high potential for addiction and their ability to foster customer loyalty. Their growth is part of a broader strategy to multiply entry points into nicotine consumption, aiming to recruit new consumers and maintain addiction, including through the combined use of multiple products. This offensive relies on particularly aggressive marketing strategies. In New Zealand, PMI has increased the visibility of its ZYN brand on social media, notably through influencers.

Manufacturers are also engaged in intense lobbying. They now have a new growth opportunity with the proposed legalization of nicotine pouches, supported in particular by Deputy Health Minister Casey Costello. This development illustrates the considerable economic stakes for the industry in regaining markets where cigarette consumption had declined sharply. Indeed, New Zealand has seen a significant decrease in daily smoking among adults, from 16.4% in 2011/12 to 6.8% in 2024/25, a reduction of nearly 60% in thirteen years, according to the New Zealand Health Survey 2024/25.

The illicit market as an argument in favor of regulatory relaxation

The term «illicit» appears 40 times in the government document. It suggests that the lack of legal access to nicotine pouches could encourage the growth of the illicit tobacco market. However, no evidence is presented to demonstrate that increased availability of alternative nicotine products would actually reduce this phenomenon. The industry could continue to use this argument to obtain a relaxation of trade restrictions, claiming that consumers would turn to illicit tobacco if alternatives presented as less harmful were not available.

In May 2026, The World Health Organization (WHO) has, however, warned about the aggressive marketing strategies used to target adolescents and young adults with nicotine sachets., calling on states to impose restrictions, or even bans (on flavors, advertising, promotion, and sponsorship). Several countries, including neighboring Australia, have already completely banned nicotine pouches, but also France, Belgium, Germany and the Netherlands.

This highly controversial new initiative is part of a growing alliance between the New Zealand government and the tobacco industry. Indeed, the coalition that came to power in November 2023 abandoned, as early as March 2024, several key measures of the national tobacco control strategy, including the generational ban on tobacco sales to people born on or after January 1st.^er January 2009 and the reduction of the number of points of sale from 6,000 to 600. These decisions were made in a context of close ties between certain political leaders and industrialists, particularly Philip Morris International, whose interests have benefited from favorable government decisions. A study published in the journal Tobacco Control also highlights that, Of the 34 measures recommended to implement Article 5.3 of the WHO Framework Convention on Tobacco Control (FCTC), only one is actually implemented in New Zealand.. This observation serves as a reminder that the tobacco industry's objective is to constantly undermine best practices in tobacco control for fear that these practices will become widespread globally. The tobacco companies' attacks are particularly intense against countries that have achieved excellent results in recent decades. For health professionals, the current situation in New Zealand underscores the crucial importance of protecting public policies from tobacco industry interference.

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[1]Calvin Cochran, Lucy Hardie, Emma Shields, Nick Wilson, Why the Government should rethink plans to legalize oral nicotine products, Public Health Communication Centre (PHCC) Aotearoa, published on November 5, 2026, accessed the same day

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