Regulatory Changes for Nicotine Pouches in Austria

A proposal from the Ministry of Health, which has been with the coalition partner ÖVP since October 2022, aims to create nationwide regulation. This draft proposes to subject nicotine pouches to the same rules as cigarettes. What does this mean in practice?

1. What does the draft law regulate?

a) Sale only to adults (18+) and only in specialized stores
The proposed amendment to the Tobacco and Non-Smoking Protection Act stipulates that nicotine pouches will only be sold to adults over 18. Additionally, sales will be restricted to specialized stores (e.g., tobacco shops), meaning the easy purchase of nicotine pouches through online shops or kiosks, which do not conduct age checks, will no longer be possible.

b) Warning labels on packaging
Similar to cigarettes, nicotine pouch packaging will also have to carry warning labels. These warnings will inform consumers of the potential health risks.

c) Mandatory reporting and maximum nicotine content
New products will have to be reported to the Agency for Health and Food Safety (AGES) before being launched on the market. Additionally, a legally defined maximum nicotine content will be introduced.

d) Advertising restrictions
In the future, advertising for these products will be subject to the same restrictions as cigarette advertising: targeting young people through events and social media will no longer be allowed.

2. Background: Why is a national regulation necessary?

A key reason for the new proposal is the EU Tobacco Products Directive, which Austria is required to comply with. Failure to implement it in time could lead to infringement procedures. Moreover, health councils in all federal states have already emphasized the need for a uniform regulation to coordinate the slow-moving individual measures in the states and increase their effectiveness.

3. Impact for Consumers and Manufacturers

a) Stricter controls, higher hurdles
The proposed amendment will significantly restrict the sale of nicotine pouches. Anyone wishing to buy them will either need to visit a tobacco shop (with age verification) or possibly undergo age verification in an online store, provided the retailer has the necessary youth protection measures in place. 

b) A step towards greater transparency
However, the regulation offers more transparency for interested adults regarding ingredients and nicotine content. 

c) Uncertainty about taxation

It remains unclear how nicotine pouches will be taxed under the new regulations. The Austrian government has not yet clarified whether it will apply a risk-based taxation model that recognizes the lower harm caused by nicotine pouches compared to cigarettes. Such an approach could encourage the use of less harmful alternatives among adult smokers seeking to reduce their health risks, aligning with harm reduction strategies already adopted in some other countries. This uncertainty leaves room for debate on whether the tax structure will support public health goals or inadvertently hinder the accessibility of safer alternatives.

4. Conclusion: A positive step for youth protection

For adult consumers, the primary change will be in how they purchase nicotine pouches, while manufacturers will face more regulation and additional requirements. 

It remains to be seen when the law will be finally passed by Parliament.