Last updated: 16 October 2026
Australia’s nicotine market is undergoing significant structural change. Declining cigarette smoking rates, changing vaping behaviour, emerging oral nicotine products and increasingly restrictive regulations are reshaping the country’s nicotine landscape.
Unlike markets where electronic cigarettes and nicotine pouches are widely available through ordinary retail outlets, Australia has introduced a regulatory framework that places strict controls on the importation, supply and advertising of many nicotine products.
The result is a complex market comprising traditional tobacco, regulated therapeutic products, tightly controlled vaping goods and emerging products that face substantial legal restrictions.
What does the Australian nicotine market look like in 2026, and what do the latest official statistics reveal?
This article examines smoking prevalence, vaping trends, nicotine pouch use, regulatory developments, and the implications for public health and industry research.
Overview of the Australian Nicotine Market in 2026
Australia’s nicotine landscape encompasses several different product categories.
These include combustible tobacco products, electronic cigarettes, nicotine pouches, nicotine replacement therapies and other specialised nicotine-containing products.
Although these products share nicotine as a common active substance, they differ considerably in terms of composition, exposure, intended purpose and legal classification.
Australia’s current regulatory environment creates an important distinction between general consumer tobacco products and therapeutic nicotine products.
Cigarettes remain available through regulated retail channels, while therapeutic vaping products are supplied through participating pharmacies under specific conditions.
Nicotine pouches, meanwhile, cannot be lawfully purchased or personally imported through ordinary consumer pathways following restrictions introduced in July 2026.
Registered nicotine replacement therapies remain available through established medicine supply channels.
Understanding these distinctions is essential when interpreting market data.
Australia’s Smoking Rate Reaches a Record Low
One of the most important developments in the Australian nicotine market is the continuing decline in tobacco smoking.
According to the Australian Institute of Health and Welfare (AIHW), the proportion of Australians aged 14 and over who smoked daily declined to 5.6% in 2025.
This represents a significant reduction from 8.3% in 2022–2023.
The long-term trend is even more striking.
In 2001, approximately 19.5% of Australians aged 14 and over smoked tobacco daily.
By 2025, the figure had fallen by more than two-thirds.
Australian Daily Smoking Rates
| Survey Year | Daily Smoking Rate |
|---|---|
| 2001 | 19.5% |
| 2016 | 12.2% |
| 2019 | 11.1% |
| 2022–2023 | 8.3% |
| 2025 | 5.6% |
Source: AIHW, National Drug Strategy Household Survey 2025.
The latest figures represent approximately 1.3 million Australians aged 14 and over smoking daily in 2025, compared with an estimated 1.8 million in 2022–2023.
This continued decline is consistent with Australia’s long-standing public health efforts to reduce tobacco consumption.
However, declining smoking prevalence does not necessarily mean that every category of nicotine use is declining at the same rate.
Vaping Trends in Australia: What Changed in 2025?
Electronic cigarette use presents a different picture from traditional tobacco smoking.
According to the AIHW’s 2025 National Drug Strategy Household Survey, 6.0% of Australians aged 14 and over reported current e-cigarette use.
This was lower than the 7.0% recorded in 2022–2023.
However, daily vaping remained relatively stable.
Daily e-cigarette use was recorded at 3.5% in 2022–2023 and 3.6% in 2025.
Current vs. Daily Vaping
| Indicator | 2022–2023 | 2025 |
|---|---|---|
| Current e-cigarette use | 7.0% | 6.0% |
| Daily e-cigarette use | 3.5% | 3.6% |
| Share of current users who vape daily | 49% | 60% |
These statistics reveal an important distinction.
While the overall proportion of Australians currently vaping has declined, daily use has remained relatively stable.
Consequently, daily users represent a larger share of current e-cigarette users than previously recorded.
This does not establish why individual users changed their behaviour, but it highlights the importance of distinguishing occasional use from regular use.
Which Age Groups Have the Highest Vaping Rates?
Vaping behaviour varies considerably by age.
The AIHW’s latest data indicate that Australians aged 18–24 remain the age group with the highest current e-cigarette use.
In 2025, approximately 14% of people in this age group reported current vaping.
This was down from 21% in 2022–2023.
Daily vaping among people aged 18–24 was approximately 8.3% in 2025, compared with 9.3% in the earlier survey.
These figures suggest that younger adults remain an important population for public health monitoring, even as current-use rates decline.
Nicotine exposure is particularly concerning for adolescents and young adults because nicotine can cause dependence and affect brain development.
The Australian Government’s vaping reforms are partly intended to reduce youth access to nicotine-containing products.
Nicotine Pouches: An Emerging Product Category
Nicotine pouches are a relatively new category within Australia’s broader nicotine landscape.
These products typically contain nicotine and other ingredients enclosed in a small oral pouch.
Unlike traditional snus, they generally do not contain tobacco leaf.
The nicotine itself may be derived from tobacco plants or manufactured synthetically.
How Common Is Nicotine Pouch Use in Australia?
The 2025 National Drug Strategy Household Survey found that 1.8% of Australians aged 14 and over had used oral nicotine pouches in the previous 12 months.
This is a measure of past-year use rather than daily use or current market sales.
The figure shows that nicotine pouches have reached a measurable proportion of the population.
However, it cannot be used to calculate the lawful commercial market size.
Regulatory Changes in July 2026
The Therapeutic Goods Administration introduced major restrictions affecting nicotine pouches from 24 July 2026.
Under the updated framework:
- Ordinary retail sales are unlawful.
- Consumers cannot personally import nicotine pouches.
- The former traveller’s exemption no longer applies.
- Previous unapproved medicine access pathways are no longer available.
- Limited statutory exceptions remain for appropriately authorised therapeutic or research activities.
As of October 2026, the TGA reports that no nicotine pouch products are included on the Australian Register of Therapeutic Goods.
These restrictions mean that measured consumer use cannot be interpreted as evidence of an unrestricted commercial market.
Australia’s Therapeutic Vaping Market
Australia’s vaping market is now organised around a highly restricted therapeutic supply framework.
Since the major reforms commencing in July 2024, ordinary retailers have been prohibited from selling vaping goods.
This includes convenience stores, tobacconists and specialist vape shops.
Legal therapeutic vaping products may be supplied through participating pharmacies under applicable requirements.
Pharmacy-Based Supply
Adults aged 18 and over may obtain certain therapeutic nicotine vaping products containing no more than 20 mg/mL without a prescription, where state or territory rules permit and pharmacist assessment requirements are satisfied.
Higher nicotine concentrations require additional medical authorisation.
Product Standards
From 1 July 2025, strengthened TGA standards introduced tighter controls over therapeutic vaping ingredients, packaging, labelling and product design.
The standards restrict the permitted ingredient categories and flavour profiles.
Industry Implications
Australia’s regulatory framework is fundamentally different from a conventional consumer vaping market.
Product standards, authorisations, pharmacy supply conditions and advertising restrictions are central considerations.
A product being commercially available in another country does not establish eligibility for supply in Australia.
Traditional Tobacco: Declining Consumption and Illegal Supply
Australia’s declining smoking rates represent a major public health development.
However, tobacco regulation also faces challenges involving illicit supply.
According to the AIHW’s 2025 survey, 34% of people who currently smoked reported purchasing illicit tobacco within the previous three months and/or currently smoking illicit tobacco.
This was approximately double the 17% recorded in 2022–2023.
What Does This Mean?
The figures indicate that illegal tobacco supply remains an important policy and enforcement issue.
However, this measure does not represent the proportion of all tobacco sales that are illicit.
It is a self-reported measure involving people who currently smoke.
Therefore, it should not be used as a direct estimate of illicit tobacco market revenue or volume.
Price and Smoking Behaviour
Cost was the most frequently reported motivation for quitting or reducing smoking in the 2025 survey.
Approximately 48% of people who smoked identified cost as a reason for considering or attempting a reduction.
Health or fitness concerns were also prominent, reported by 45%.
These findings demonstrate that smoking behaviour is influenced by economic and health considerations.
They do not, by themselves, establish the effect of any individual tax or regulatory change.
Nicotine Replacement Therapy and Smoking Cessation
Nicotine replacement therapy (NRT) remains an established part of Australia’s smoking cessation framework.
Registered NRT products include:
- Nicotine patches.
- Nicotine chewing gum.
- Nicotine lozenges.
- Nicotine mouth sprays.
These products operate within Australia’s therapeutic goods framework and are regulated differently from unapproved nicotine pouches.
Certain NRT medicines may be available without prescription, while eligible patients may qualify for Pharmaceutical Benefits Scheme subsidies.
Use of NRT Among People Who Smoke
The AIHW’s 2025 survey found that 15% of people who smoked reported using nicotine gum, patches, inhalers or sprays as an activity to help quit or cut down.
This was broadly similar to the level recorded in 2022–2023.
The same survey found that approximately 25% of people who smoked had successfully stopped smoking for more than one month during the previous year.
These results highlight the continued relevance of smoking cessation support within Australia’s nicotine landscape.
Australian Nicotine Product Categories Compared
The table below summarises major product categories.
| Category | Regulatory Environment | Main Market Characteristic |
|---|---|---|
| Combustible tobacco | Strictly regulated retail market | Long-term decline in smoking prevalence |
| Therapeutic vaping | Controlled pharmacy supply | Restricted therapeutic access |
| Nicotine pouches | Ordinary consumer supply and import prohibited | Emerging use but no general lawful retail pathway |
| Registered NRT | Established therapeutic goods market | Recognised smoking cessation treatments |
| Illicit tobacco | Unlawful supply | Significant enforcement and public health concern |
These categories should not be combined into one estimated commercial market without reliable, product-specific financial data.
How Regulations Are Reshaping the Industry
Regulation has become a defining feature of Australia’s nicotine-related industries.
Three developments are particularly significant.
1. Restrictions on Consumer Vaping
The vaping reforms introduced from 2024 removed ordinary non-pharmacy retail sales of vaping goods.
This fundamentally changed the lawful commercial distribution structure.
2. Strengthened Product Standards
The 2025 therapeutic vaping standards introduced additional requirements covering technical and chemical characteristics.
These changes increased the importance of regulatory documentation and compliance assessment.
3. Nicotine Pouch Restrictions
The July 2026 changes closed ordinary consumer access pathways for nicotine pouches.
This demonstrates the distinction between emerging consumer interest in a product and the existence of a lawful retail market.
What Are the Main Trends in Australia’s Nicotine Market?
Based on the latest official evidence, several developments stand out.
Declining Daily Tobacco Smoking
The share of Australians who smoke daily continues to fall, reaching 5.6% among people aged 14 and over in 2025.
Reduced Current Vaping
Current vaping declined between 2022–2023 and 2025, although daily vaping remained relatively stable.
Measurable Nicotine Pouch Use
Past-year nicotine pouch use reached 1.8% in 2025, but the 2026 regulatory changes substantially restrict lawful access.
Continued Relevance of Smoking Cessation Treatments
Registered NRT products and healthcare-supported cessation services remain important elements of Australia’s public health framework.
Greater Importance of Compliance
For businesses involved in nicotine-related products, product classification and legal supply conditions have become increasingly important.
Industry Outlook: What Could Happen After 2026?
Forecasting Australia’s nicotine market requires caution.
Official prevalence data provide useful evidence about product use, but they do not automatically predict future commercial revenue or demand.
Several factors will influence developments after 2026.
Regulatory enforcement: The effectiveness of import, retail and advertising restrictions may influence future patterns of availability and reported use.
Smoking cessation behaviour: Continued declines in smoking could change the composition of nicotine use across the population.
Therapeutic product regulation: Future developments in approved smoking cessation medicines and therapeutic vaping standards may affect authorised access.
Emerging product policy: New nicotine product categories may face further regulatory review.
Public health research: Longer-term research will help clarify the health consequences and patterns of use associated with newer nicotine products.
At present, there is insufficient information in the official prevalence statistics alone to make reliable forecasts of nicotine product revenue or market growth.
What Does This Mean for International Businesses?
Australia is not a conventional unrestricted consumer market for many nicotine products.
The country’s regulatory arrangements create substantial differences between combustible tobacco, therapeutic nicotine medicines, vaping goods and nicotine pouches.
International businesses researching the market should focus on accurate regulatory classification and available evidence.
Relevant questions include:
- What legal category does the product fall within?
- Is there an authorised route for importation and supply?
- What product-specific standards apply?
- Are the proposed activities permitted under Australian law?
- Does the available market data actually measure the relevant product category?
A high level of reported product use does not necessarily indicate a lawful commercial opportunity.
Similarly, scientific product testing or overseas authorisation does not automatically grant Australian market access.
Frequently Asked Questions
1. Is the Australian nicotine market growing in 2026?
The answer depends on the product category and measurement. Daily smoking has declined significantly, current vaping use has decreased, and daily vaping has remained relatively stable. These prevalence trends are not equivalent to total industry revenue.
2. What percentage of Australians smoke in 2025?
According to the AIHW’s 2025 National Drug Strategy Household Survey, 5.6% of Australians aged 14 and over smoked tobacco daily.
3. How many Australians use electronic cigarettes?
In 2025, 6.0% of Australians aged 14 and over reported current e-cigarette use, while 3.6% reported daily use.
4. Are nicotine pouches popular in Australia?
The AIHW reported that 1.8% of Australians aged 14 and over had used oral nicotine pouches in the preceding 12 months. This does not measure daily use or legal sales.
5. Are nicotine pouches legal for retail sale in Australia?
No. Ordinary retail sales and consumer imports are prohibited under the restrictions effective from 24 July 2026. Narrow statutory exemptions may apply to specific authorised activities.
6. Can convenience stores sell nicotine vapes in Australia?
No. Lawful therapeutic vaping supply is restricted to participating pharmacies under applicable requirements.
7. Why is smoking declining in Australia?
Australia has implemented extensive tobacco-control policies over many years. Factors associated with smoking behaviour include health concerns, costs, cessation support and regulatory measures. Individual contributions require careful evaluation.
8. What is happening to illicit tobacco in Australia?
AIHW data show that 34% of people who smoked in 2025 reported recent illicit tobacco purchasing and/or current illicit tobacco use, compared with 17% in 2022–2023.
9. Are nicotine replacement therapies legal in Australia?
Yes. Registered nicotine replacement therapies remain available through authorised medicine supply channels.
10. What is the outlook for Australia’s nicotine market?
Future developments will depend on smoking trends, therapeutic product regulation, enforcement outcomes and new public health evidence. Reliable revenue forecasts require additional verified commercial data.
Conclusion
Australia’s nicotine market in 2026 is characterised by declining tobacco smoking, changing vaping behaviour, emerging oral nicotine product use and strict regulatory controls.
The 2025 National Drug Strategy Household Survey provides valuable evidence of these developments.
Daily tobacco smoking has fallen to a record low, while current vaping has declined and daily vaping remains relatively stable.
Nicotine pouch use has become measurable, although the regulatory changes introduced in July 2026 have removed ordinary consumer access pathways.
Meanwhile, registered nicotine replacement therapies continue to play an established role in smoking cessation.
For researchers, policymakers and international industry professionals, the most important distinction is between reported product use, lawful commercial activity and actual market revenue.
These are separate measures and should not be treated as interchangeable.
As Australia’s nicotine policies and public health outcomes continue to develop, reliable official statistics and transparent regulatory information will remain central to understanding the market.
Further Reading
Explore our related articles on Australia’s vaping laws, nicotine pouch restrictions, nicotine product imports, nicotine replacement therapy and Australian tobacco regulations.
Disclaimer: This article is intended for educational, regulatory and market research purposes only. It does not constitute medical, legal or investment advice. Nicotine is addictive, and many nicotine products are subject to strict legal restrictions in Australia.