By Timothy S. Donahue

Top Takeaways:

• Pouch power: Haypp’s Q4 sales topped SEK 1 billion for the first time, with nicotine pouch volumes up 28% year-over-year and accounting for 67% of total group volume.
• U.S./UK surge: Nicotine pouch volumes rose 97% in the U.S. and 73% in the UK, reinforcing those markets as Haypp’s primary growth engines heading into 2026.
• Regulatory watch: FDA authorizations, proposed U.S. state taxes, and the UK Tobacco and Vapes Bill are shaping the competitive landscape as Haypp scales toward its 2028 growth targets.

The nicotine pouch boom isn’t slowing down. Haypp Group reported fourth-quarter 2025 net sales of SEK 1.052.2 billion (US$116.2 million) up from SEK 915.2 million a year earlier (up 15% year-over-year). It marks the first time the e-commerce-focused nicotine retailer has surpassed SEK 1 billion in quarterly revenue.

The topline acceleration was driven largely by explosive growth in nicotine pouches in the United States and the United Kingdom — markets CEO Gavin O’Dowd believes will define the company’s next phase.

In a quarter that also delivered record active consumers and sharp volume gains, Haypp made clear that nicotine pouches are no longer a side category. They are the engine.

Billion-Krona Quarter, 28% Volume Jump

Haypp’s fourth-quarter momentum was unmistakable.

Nicotine pouch volumes increased 28% year over year in Q4, with the category accounting for 67% of total group volume. “Haypp Group’s accelerating topline performance in the fourth quarter, which carried into the new year — particularly in the US and UK — combined with sustained investment in the foundations for future growth, positions us for a strong 2026,” O’Dowd stated in the report.

The milestone quarter also recorded the highest number of active consumers in the company’s history, at 630,000, up from 571,000 in Q4 2024. Order volumes rose to 1.337 million from 1.217 million, and average order value edged up to SEK 697 ($US76.99).

“Momentum was reflected in new quarterly highs of over SEK 1 billionn in sales and 630,000 active consumers,” O’Dowd said. Gross margin improved modestly to 17.4% from 17.1% a year earlier, while adjusted EBITDA reached SEK 57.3 million, essentially flat year-over-year, reflecting continued investment in expansion.

Adjusted EBIT declined to SEK 31.4 million from SEK 36.4 million as overhead rose, particularly in the U.S. business unit. Operating profit totaled SEK 4.0 million, down from SEK 26.3 million in Q4 2024. Still, the topline story dominated the quarter.

U.S. and UK: The Growth Engine

The Growth Markets segment — which includes the United States, the UK, Germany, Austria, and Switzerland — posted Q4 net sales of SEK 278.7 million, up 41.4% year-over-year. In constant currency, the increase was 53%.

Nicotine pouch volume in the Growth segment rose 61% during the quarter, driven primarily by the U.S. market, where new consumer acquisition nearly tripled year over year. “US and UK [nicotine pouch] volumes increased 97% and 73% [year over year], respectively, in Q4,” O’Dowd said.

That trajectory extended into 2026. According to the report, January nicotine pouch volumes rose approximately 120% year-over-year in the U.S. and roughly 100% in the UK.

Haypp’s strategic focus on those markets is deliberate. O’Dowd noted that the U.S. represents the largest global nicotine pouch opportunity, while the UK is expected to become Europe’s largest market by 2030.

The company also highlighted the U.S. Food and Drug Administration’s December 2025 decision to grant Marketing Orders for six variants of Altria’s On!Plus as evidence of “increasing regulatory momentum in the category.” Haypp stated it expects additional decisions on products in the accelerated pilot program to follow in the first half of 2026.

At the same time, Haypp is positioning itself for a more competitive tax and regulatory environment. Several U.S. states have proposed or enacted taxes on nicotine pouches, including a proposed 75% wholesale tax in New York that could raise the price of a can by roughly $2 if enacted.

“As these increases are passed through across channels, we see a clear competitive advantage for Haypp; consumers will become more price sensitive, strengthening our relative value proposition,” the company stated.

In the UK, the Tobacco and Vapes Bill is advancing, with potential nicotine limits of 20 mg per pouch and retailer licensing that would include nicotine pouches. Haypp said these measures align with standards it already applies and could help address underage use while supporting category sustainability.

Scaling for 2026 — and Beyond

For the full year 2025, Haypp reported net sales of SEK 3.848.9 billion, up 5% year-over-year. Nicotine pouch volumes increased 13% over the year. Adjusted EBITDA for the year rose to SEK 238.7 million from SEK 205.8 million, with adjusted EBIT increasing to SEK 150.7 million from SEK 134.5 million.

The Board has set 2028 financial targets calling for compound annual revenue growth of 18% to 25% and an adjusted EBIT margin of 5.5%, plus or minus 150 basis points. To support that trajectory, Haypp completed a technology infrastructure overhaul in December 2025, including ERP, middleware, and front-end upgrades. Management changes announced in January 2026 were intended to strengthen U.S. and UK capabilities.

“These changes reflect a variety of factors, including completion of our technology infrastructure overhaul,” the company stated. Haypp also continued expanding its consumer base. Over the full year, active consumers totaled 1.131 million, with more than 1.1 million consumers served across 11 e-commerce brands in six countries.

Not every development was positive. In Austria, legislation classifying nicotine pouches as tobacco products will restrict sales to licensed tobacconist shops starting in mid-2026. Haypp expects to exit Austria at the end of June; Austrian sales account for less than 1% of group revenue.

In Sweden, the Administrative Court of Appeal upheld a decision to revoke Snusbolaget Norden AB’s license to sell traditional snus. Haypp said it disagrees with the ruling and intends to appeal, adding that it does not expect any material financial or operational impact on its Swedish business.

Still, the quarter’s defining narrative remained growth — particularly in markets that are early in their nicotine pouch adoption curve. “As we execute on the priorities outlined at our April 2025 Capital Markets Day, we remain confident that our regulatory preparedness, operational discipline, consumer-centric approach, and major growth opportunities, notably in the US and UK, position us to create long-term value and strengthen our leadership in the category,” O’Dowd stated.

In other words, the billion-krona quarter may be less of a peak — and more of a baseline.