KT&G in Talks to Acquire Leading Nicotine Pouch Company 

South Korean tobacco and ginseng conglomerate KT&G is reportedly in advanced talks to acquire a major Northern European nicotine pouch company for approximately 300 billion won (roughly $200 million), according to investment banking sources familiar with the matter. 

While KT&G has officially declined to comment on any potential deal, insiders suggest the move is part of a broader strategy to pivot away from traditional tobacco products and expand into the fast-growing alternative nicotine sector. The Korean giant is also rumoured to be exploring the acquisition of a Japanese ginseng firm, further solidifying its dual focus on wellness and next-generation nicotine products. 

This potential acquisition could signal KT&G’s most aggressive push yet into the nicotine pouch market—a segment experiencing rapid global growth as smoking rates decline and health-conscious consumers seek smokeless alternatives. If the deal goes through, KT&G would join the ranks of global players like Philip Morris International (PMI), which saw its stock rise over 80% following the $16 billion acquisition of Swedish Match, the maker of Zyn—the world’s leading nicotine pouch brand. 

Market analysts see this move as a strategic response to mounting regulatory pressures and declining cigarette sales worldwide. Nicotine pouches, which offer a discreet, tobacco-free delivery system, have become especially popular among younger consumers in Europe and North America. With Europe being a hotbed for nicotine pouch innovation and adoption, KT&G’s acquisition target could provide the South Korean firm with a ready-made platform to scale globally. 

“KT&G appears to be taking a page from PMI’s playbook, aiming to future-proof their business by investing in cleaner nicotine technologies,” said one investment analyst under condition of anonymity. 

Should the deal materialise, it would mark KT&G’s most significant foray into the global reduced-risk product (RRP) market and could set the stage for further expansion. Industry experts believe that early movers in the nicotine pouch segment will have a substantial advantage as consumer preferences and regulatory landscapes continue to shift. 

As of now, KT&G remains tight-lipped, reiterating that “no decisions have been finalised.” Still, the market is watching closely, and a successful acquisition could significantly boost KT&G’s long-term growth prospects and international footprint. 

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