Philip Morris International to invest over $800 million to meet growing Zyn market

Philip Morris International (PMI), the owner of Zyn manufacturer Swedish Match, will invest over $800 million in new Zyn factories in the U.S. to meet the growing demand for the flavored nicotine pouches. Although PMI claims the expansion will bring economic growth to states where Zyn is manufactured, public health experts have raised concerns about the long-term health risks of these products and their potential appeal to young people.

Sales of oral nicotine pouches, with top brands including Zyn, On!, Rogue, and Velo, have exploded in recent years. Since these products entered the market, sales have increased more than 300-fold, rising from $710,000 in 2016 to $216 million by June 2020, according to a 2021 letter published in JAMA. Zyn remains the market leader, and PMI recently announced that 385 million cans were sold in 2023, a 62% increase over 2022.

Zyn is the newest and most successful venture into what PMI calls its “smoke-free future” – a strategy to move away from traditional tobacco products toward new, noncombustible products. According to data from the 2024 National Youth Tobacco Survey, youth use of oral nicotine products remains low at 1.8%. However, 29.3% of current users report frequent use and 22.4% use pouches daily, a concerning trend given that oral nicotine pouches are highly addictive and the long-term health effects are not yet fully understood.

New Zyn manufacturing facilities may lead to more jobs, but at what cost?

PMI has announced that a new Zyn factory will be built in Aurora, Colo., and an existing Zyn plant in Owensboro, Ky., will be expanded to increase manufacturing capacity. The expansion of the facility in Kentucky is expected to raise production to around 900 million cans in 2025. The tobacco giant is hoping these facilities will allow it to meet the growing demand for the flavored nicotine pouches following exploding sales and the subsequent Zyn shortage in the summer of 2024.

Although state officials have promised new Zyn facilities will bring economic growth to states, public health experts have expressed concerns about the safety of the products. While increased manufacturing may create jobs in the short term, nicotine addiction and the possible health consequences of long-term oral nicotine pouch use could lead to increased health care spending and loss of productivity further down the line.

In addition, concerns have been raised that Zyn could appeal to young people and those who have never smoked or chewed tobacco. Like many youth-appealing products, Zyn comes in a variety of flavors, including fruit, mint, coffee, cinnamon, and more. The pouches are placed discreetly between the top lip and gum and are difficult to detect once inserted, which may increase their appeal among teens and young people.

Zyn could face legal barriers as concerns grow over illegal sales and youth use

In June 2024, Washington, D.C.'s attorney general issued a subpoena to PMI, declaring that its online sales violated the district’s ban on flavored nicotine. The company halted all online sales in response, which led to a nationwide shortage. It could also result in a multi-million dollar fine for the tobacco giant.

In September 2024, a similar lawsuit was filed in San Francisco, alleging that online retailers that sell Zyn are violating the city’s ban on flavored tobacco, which was put into place to prevent teens and young adults from starting to use such products.

Zyn could face further legal troubles if its products and marketing tactics are found to attract teens and young people.

Youth use of nicotine in any form is unsafe and can lead to lifelong dependence

Since oral nicotine pouches like Zyn are relatively new, the long-term health effects have not yet been studied. However, youth use of nicotine in any form is unsafe, and nicotine use during adolescence can disrupt the formation of brain circuits that control attention, learning, and susceptibility to addiction. Research has shown that using nicotine early in life is correlated with daily use and lifetime dependence, and nicotine use can also intensify symptoms of depression and anxiety.