Meanwhile, Schuman recalled that “customer interest in Synthetic Nicotine initially focused on markets that seemingly presented regulatory opportunities for selling products containing Synthetic Nicotine, such as South Korea and the US.” But he added that manufacturers in the meantime have come to understand that increasing numbers of adult smokers are starting to look at ways to wean themselves of tobacco use, and Synthetic Nicotine could play an important role in achieving just that.

The interest in Synthetic Nicotine had now “pivoted to the technological application rather than simply exploring the ‘does the product solve a tax or regulatory problem in a market?’ question,” Schuman said. “Consequently, NGL has been seeing an upswing in business inquiries from all major tobacco and nicotine markets.” This “upswing” is evidenced by the almost phenomenal increases in NGL’s year-on-year volume turnovers of its Synthetic Nicotine products. In 2018, the company had clocked a 15% increase compared to the preceding year; in 2019 this had risen another 65% year-on-year; in 2020 (and Covid-19 notwithstanding) it settled in at 300%; and for 2021 Schuman projected a staggering 1,800%.

Yet despite the apparent success of Synthetic Nicotine, Schumann asserted that traditional combustible tobacco products and the use of tobacco-derived nicotine recon sheet will likely remain unaffected. “The real advances [of synthetic nicotine] will occur in vape, heat-not-burn, pouches, gums, transdermal patches, dry aerosols, and other novel nicotine delivery systems,” he said. The market for Synthetic Nicotine will grow through what Tully described as “a destabilizing period as companies joust for customers and opportunities.”

“The coming months are going to see the introduction of multiple so-called Synthetic Nicotine products that are specifically targeted at the US,” he said, adding that these products needed to be subjected to rigorous validation to ensure that they are not “fake” (as in: tobacco-derived nicotine falsely labeled and misleadingly marketed as “synthetic”).

Synthetic Nicotine was a zero market in 2014,” asserted Tully, with NGL having been “the leading pioneer and innovator globally since that time.” And while the California-based company believes that the future growth trajectory for Synthetic Nicotine is strong, Tully is realistic enough to expect that NGL will “be met with more aggressive competition from tobacco-extracted nicotine manufacturers as they innovate their processes and improve their product quality to an extent that they will likely always enjoy the bulk share of the market.” But only time will tell.

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Meanwhile, Schuman recalled that “customer interest in Synthetic Nicotine initially focused on markets that seemingly presented regulatory opportunities for selling products containing Synthetic Nicotine, such as South Korea and the US.” But he added that manufacturers in the meantime have come to understand that increasing numbers of adult smokers...