Zyn (nicotine pouches)

Zyn is a brand of nicotine pouches. Zyn pouches are designed to be placed between the gum and upper lip and are available in several variants with different nicotine strengths and flavors.

Zyn
Product typeNicotine pouches
OwnerPhilip Morris International
Introduced2014
MarketsUnited States
United Kingdom
Switzerland
Sweden
Hungary
TaglineFind your ZYN
Websitezyn.com

The brand is operated by Swedish Match, a subsidiary of Philip Morris International since 2022.[1] It is mainly distributed in the United States, where it represented more than 60% of the segment in 2022, but it is also available in Sweden, UK and other European countries.

History

Zyn pouches were first introduced in 2014 in the United States.[2] From 2017 to 2019 one of Swedish Match's US plants, located in Owensboro, Kentucky, was expanded to handle the manufacture of Zyn pouches directly in the US.[3][4] The works required an investment of $115 million and the new plant opened in May 2019.[5] By the end of 2020, they were available in about 100,000 stores in the United States.[6] Zyn pouches are also distributed in other countries, such as Sweden,[3] Switzerland[7] and the UK.[8]

Sales of Zyn pouches has grown rapidly and has contributed to a significant increase in Swedish Match's revenues from 2020 onwards.[9][10] Although tobacco companies entered the nicotine pouch category around the same time, Swedish Match reached a 67% category share in the US at the beginning of 2023.[11][12] According to a study focusing on the four main brands available in the US between September 2019 and March 2022, Zyn's sales increased from around 20 million pouches per month in the last quarter of 2019 to more than 140 million pouches per month in the first quarter of 2022.[13] The company reported sales reaching 261 million pouches at the beginning of 2023.[12]

In November 2022, Swedish Match was acquired by Philip Morris International.[1] Zyn has been identified among the strategic brands acquired by the tobacco giant to achieve its vision of a "smoke-free future", alongside the company's existing portfolio of Iqos and Veev vaping products.[11] Subsequently, Shiro, Philip Morris' nicotine pouch brand will be renamed Zyn.

Features

Zyn pouches are sold in round cans containing 15 to 20 nicotine pouches. These cans are available with different levels of nicotine strength (such as 3 or 6 milligrams per pouch in the US) and different flavored and unflavored varieties.[3]

The pouches contain nicotine extracted from tobacco leaves, together with food grade ingredients.[14] The pouches themselves are made of plant fibers, which allow the nicotine to diffuse out of the pouch when moistened.[15] They are designed to be placed between the user's upper lip and gum, or between the gum and cheek, and used for around 30 minutes.[16]

Criticism and Controversies

Consumption of nicotine pouches may result in higher levels of nicotine in the blood than consumption of cigarettes.[17] Various tobacco-control advocates have also alleged that the pouches could constitute gateway products for youth.[18]

In 2021, Swedish Match was criticized in the UK for its Zyn marketing on social media, including presenting its nicotine pouches as a supplement to regular smoking in places where smoking is banned, with the slogan "Can't smoke? Can't vape? Can Zyn".[8][19]

Nicotine pouches are addictive and the long-term health effects remain unknown.[3] Among side effects associated with the consumption of nicotine pouches, users reported gum irritation, hiccups or nausea.[20]

References
  1. Marie Mannes (2022-11-28). "Philip Morris to de-list Swedish Match after raising stake to 93%". Reuters.
  2. Anna Ringstrom (2021-04-30). "Swedish Match steps up ZYN nicotine pouch marketing after Q1 profit beat". Reuters.
  3. John Reid Blackwell (2019-03-27). "Swedish Match starting nationwide rollout of tobacco-free nicotine pouch product". Richmond.com.
  4. "Swedish Match to invest $41 million in Owensboro operation creating 36 jobs". Lane Report. 2017-08-31.
  5. Ashley Sorce (2019-05-14). "Swedish Match cuts ribbon on $115 million expansion of Owensboro-exclusive product line". Owensboro Times.
  6. Dermot Davitt (2021-11-18). "Swedish Match targets growth for nicotine pouch brand ZYN in Middle East". The Moodie Davitt Report.
  7. Sarah Serafini (2022-05-13). "Snus ist in aller Munde – jetzt springt Philip Morris auf den Trend auf". watson.ch (in German).
  8. Rob Davies (2021-11-08). "Firms under fire for using UK influencers to push nicotine products". The Guardian.
  9. "Swedish Match profit rise beats forecasts helped by ZYN sales". Reuters. 2020-07-17.
  10. "Swedish Match continues to see strong smoke-free sales growth". Reuters. 2022-10-28.
  11. "Philip Morris wins Elliott's backing for $15.7bn Swedish Match takeover". Financial Times. 2022-11-06.
  12. Pat Crawley (2023-03-06). "Philip Morris: Steady Dividends With New Growth Levers". MarketBeat.
  13. "Nicotine Pouch Sales Rising; Products with Highest Concentration Levels also Increasing, New Study Shows". American Cancer Society. 2022-11-16.
  14. Rich Duprey (2019-08-26). "This Under-the-Radar Smoking Alternative Could Be Bigger Than E-Cigs". Yahoo Finance.
  15. Clément Perruche (2022-05-09). "Tabac : Philip Morris sur le point de racheter le suédois Swedish Match AB". Les Echos (in French).
  16. Diane Caruana (2022-05-19). "ZYN Launches Tobacco Flavoured Nicotine Pouches". Vaping Post.
  17. "Health risk assessment of nicotine pouches" (PDF). Federal Institute for Risk Assessment. 2022-10-07.
  18. "Nicotine Pouches". Tobacco Tactics. 2022-12-19.
  19. Dasha Afanasieva (2023-04-15). "Big Tobacco Pushes Nicotine Pouches as Vaping Hit by Curbs". Bloomberg.
  20. "Nicotine pouches: Are they safer than chewing, smoking or vaping?". University of Nebraska.
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