Tobacco Asia

54 tobaccoasia Issue 4, 2026 July / August of next generation nicotine products" and height- ened regulatory expectations. Nicotine pouches, in particular, are a ma- jor growth driver. McQuillan divulged that these products tend to utilize more nicotine than e- liquids, for example, contributing to increased demand for high-purity nicotine. With projected compound annual growth rates (CAGR) of 30– 35%, the category is poised to reshape the market. At the same time, the industry faces ongo- ing challenges, including regulatory fragmentation, supply chain complexities, and the need to combat misinformation about nicotine. As McQuillan ob- served, there remains "a lot of nicotine illiteracy out there," with many people – including regula- tors and even physicians - still equating nicotine itself with the harms of smoking. Positioning in a competitive landscape All three companies interviewed rightfully posi- tion themselves as leaders in the pharmaceutical- grade nicotine space, each emphasizing different strengths. Chemnovatic highlighted its integrated production model, combining advanced distilla- tion technologies with application-level expertise in NGPs, including e-liquids and nicotine pouch formulations. Alchem underscored its global scale, regulatory expertise, and innovative solu- tions such as NOTES©. And Nicobrand pointed out its decades-long track record in pharmaceuti- cal applications and its extensive manufacturing capacity for nicotine active pharmaceutical ingre- dients (APIs) in addition to its well-established and class-leading SNP. But, despite their differences, all three com- panies share a common focus on quality, compli- ance, and innovation. As Balconi put it, the indus- try is moving toward "an increasing convergence of pharmaceutical standards into mainstream con- sumer nicotine products." The gold standard for a new era Pharmaceutical-grade nicotine has evolved from a niche requirement for medicinal products into a cornerstone of the modern nicotine industry. As RRPs continue to gain traction, the demand for high-purity, well-documented, and responsibly- produced nicotine will only intensify. What emerges from the perspectives of Chemnovatic, Alchem NicSelect, and Nicobrand/ CNT is a clear consensus: purity alone is no longer enough. The future belongs to manufacturers who can combine scientific rigor with transparency, sustainability, and a deep understanding of how nicotine performs in real-world applications. In an industry defined by transformation, pharmaceuti- cal-grade nicotine stands as both a benchmark and a promise of quality, consistency, and a safer path forward. Chemnovatic Sp. z o.o. Founded in 2013 and headquartered in Lublin, Poland, with offices and ware- houses in the United Kingdom and Portugal, Chemnovatic operates a fully integrated production facility, combining nicotine distillation, production of nic- otine salts, nicotine polacrilex, e-liquids and nicotine pouch mixes. The com- pany's STC Nicotine® framework underpins its approach to quality, sustain- ability, traceability, compliance and unified manufacturing standards across the nicotine manufacturing stages. More info: chemnovatic.com Alchem NicSelect Part of Alchem International, established in 1935, Alchem NicSelect focuses on pharmaceutical-grade nicotine and next generation nicotine solutions. With manufacturing rooted in India and global operations spanning Europe and the US, the company serves a wide range of industries, from pharmaceuticals to vaping and oral nicotine products. It is known for its advanced purification technologies and proprietary NOTES© system. More info: nicselect.com Nicobrand Ltd./CNT GmbH Nicobrand from Northern Ireland was acquired by CNT from a multinational pharmaceutical company in 2019. Both are recognized as the pioneers in pharmaceutical grade nicotine dating back to the 1980's. Based in Northern Ireland, Nicobrand traces its origins back to the early 20th century and has been producing pharmaceutical-grade nicotine since the 1980s. The company supplies nicotine APIs and value-added formulations to a vast array of cus- tomers all over the world, both in the NRT and RRP sectors. Aside from its long-standing role in the development of nicotine replacement therapies, it has an excellent track record with regards quality, sustainability and security of supply. More info: nicobrand.com Production is concentrated in three main regions: India, China, and Eu- rope. Outside China, where consumption is largely domestic, India accounts for around 95% of the global nicotine extraction from tobacco leaf to pro- duce crude nicotine, and around 65% of the downstream distillation and pu- rification to convert crude nicotine to pharma-grade nicotine. In Europe, nicotine production is also based on localized distillation and purification of India-produced crude nicotine, accounting for approxi- mately 35% of the global production of pharma-grade nicotine. India's key strategic role in the supply chain is closely linked to the country's abundant cultivation of high content lower cost tobacco. The main manufacturers globally of pharma-grade nicotine in India, including their respective certification levels, are Alchem (ICH WHO GMP, EDQM GMP) and BGP (ICH WHO GMP). Meanwhile, in Europe, the key players, including their respective certification levels, are Siegfried (Siegfried. ch) (SWISS MEDIC GMP), Nicobrand (MHRA GMP), A-Sense (ISO), and Chemnovatic (ISO). India, in particular, is emerging as a major hub. Anna Balconi highlight- ed the advantages of "doorstep access" to tobacco in the country, while Mc- Quillan noted India's growing number of producers "who spring up oppor- tunistically." However, both interviewees emphasized that cost advantages must be balanced with stringent compliance and sustainability requirements. Growth drivers and future outlook Demand for pharmaceutical-grade nicotine is rising steadily, driven by the rapid expansion of RRPs. Chemnovatic reported "consistent, double-digit growth," while Alchem attributed increased demand to "the rapid growth

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