- The nicotine pouch market is projected to reach $21.84 billion in 2027, up from $2.33 billion in 2020, representing a CAGR of 30.7%
- The smokeless tobacco products sector is expected to post a CAGR of 7.2% over the forecast period (2018-2025)
- Lexaria, through its patented DehydraTECH technology, is tapping into this important alternative nicotine sector
- Its management is confident that its research and technology development investment will pay off and provide greater consumer satisfaction.
In 2019, it was estimated that at least 1.1 billion people globally smoked cigarettes regularly. 780 million, representing 71% of the global smoking population, noted that they wanted to quit. Their resolve to quit smoking has seen a significant decline in cigarette sales and a steady rise in nicotine alternatives, which experts project will carry on for the foreseeable future (https://cnw.fm/UyBtW).
For one, the nicotine pouch market has grown significantly and is estimated to reach $21.84 billion in 2027, up from $2.33 billion in 2020, representing a CAGR of 30.7%. The nicotine replacement therapy (“NRT”) market size, on the other hand, is projected to reach $147.9 billion by 2028, representing a CAGR of 16.3% over the 2021 to 2028 forecast period (https://cnw.fm/YyNlg).
Lexaria Bioscience (NASDAQ: LEXX) acknowledges the transference from smoking cigarettes to nicotine alternatives. Through its patented DehydraTECH technology, it looks to tap into this 853 billion dollar industry and stamp its position as the undisputed industry leader.
Since Lexaria began the development of DehydraTECH back in 2014, it has seen its application in various areas, including but not limited to antivirals, cannabinoids, vitamins, and non-steroidal anti-inflammatory drugs (“NSAIDs”). However, nicotine is showing great promise, with Lexaria exploring the oral mucosal nicotine market that is an integral part of the smokeless tobacco products sector which is expected to grow at a CAGR of 7.2% from 2018 to 2025 (https://cnw.fm/Yrt30).
In a move that sought to prove DehydraTECH’s superiority, Lexaria conducted an oral nicotine absorption study in 2021. The research showed that Lexaria’s nicotine delivered via an oral pouch product dispensed enough nicotine levels in blood plasma in four minutes, as concentration-matched controls did in 45 minutes. In addition, peak levels of DehydraTECH nicotine proved to be approximately ten times higher than the peak level of the controls (https://cnw.fm/GNae9).
Lexaria is looking to build on these findings with the latest human study slated to begin in the summer of 2022. The research will compare Lexaria’s DehydraTECH-nicotine pouch performance to existing leading brands on shelves in the United States. The company is optimistic that this study will help it differentiate itself, its brand, and its product in the market, ultimately growing its market share and creating value for its shareholders.
With key industry players such as Altria Group, British American Tobacco Industries, Philip Morris International, and GlaxoSmithKline PLC embracing a transition to a smoke-free future, Lexaria isn’t being left behind. Instead, it recognizes the existing opportunity and is capitalizing on its DehydraTECH technology to set itself apart from its peers and aggressively push its brand in the market.
Lexaria’s management is confident that its research investment and technology development will pay off significantly with time. But, more importantly, they note that it will provide much greater consumer satisfaction.
“Our technology was ten to twenty times faster in delivering comparable levels of nicotine into bloodstream than the peak of the concentration-matched controls and went on to far exceed their total delivery, which should provide much greater consumer satisfaction,” reckoned Chris Bunka, Lexaria’s Chief Executive Officer (“CEO”).
“Performance gains of this magnitude could be of great significance in enabling the oral pouch product category to offer improved nicotine satiety and effectiveness, with a goal of one day rendering pulmonary administration practices like smoking and vaping as obsolete,” he added.
For more information, visit the company’s website at www.LexariaBioscience.com.
NOTE TO INVESTORS: The latest news and updates relating to LEXX are available in the company’s newsroom at https://cnw.fm/LEXX
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