Lol, They love it. >.>;; I have to watch it though, when they notice the catnip bag in my hand, they are much like geese flocking you because you have a loaf of bread in your arms. ( lmao! In my case I drop it and make a mad dash out of the center of the geese' attention.)
The kitties love to rub their whiskers all over the bag while i'm trying to get some out for them. I have to keep the bag in a closet with the door shut, because Abby has been known to steal my roomates catnip for her cat a long time ago lol! (and we never did find that bag).