Nicotine pouches are growing rapidly①
Tobacco giant Philip Morris International (PM.US) recently announced that it will invest US$600 million through its U.S. subsidiary over the next two years to open a state-of-the-art manufacturing plant in Aurora, Colorado, to produce Swedish Match. Zyn, the nicotine pouch brand, helps meet the growing demand for smoke-free products from legal-age consumers around the world.
Philip Morris International acquired nicotine bag manufacturer Swedish Match for US$16 billion in 2022. The core reason is that the former took a fancy to the growth potential of Swedish Match snus brand Zyn.
In 2017, Swedish Match launched the tobacco-free modern snus Zyn, becoming one of the few companies to completely abandon the traditional tobacco business. The launch of this snus is also considered a turning point in the rapid growth of modern snus. There is a history of using snus in Europe, which can be traced back for hundreds of years, but it was only popularized in Sweden. This is also the background for the emergence of highly valued snus companies in Sweden.
Nicotine pouches are a type of snus. In addition to nicotine, they also contain stabilizers, fillers, sweeteners, other flavors and pH adjusters. They do not contain tobacco. They are usually placed between the gums and the upper lip and pass through the oral mucosa and It is absorbed into the blood and reaches the optimal dose of nicotine in about 15 to 30 minutes, and has many benefits such as being smokeless, odorless and does not require spitting.
No smoke is produced and does not pass through the lungs, which reduces the harm caused by the burning of traditional cigarettes. Studies have shown that the risk of using nicotine bags is lower than that of E-Cigarettes and HNB products, and is not comparable to traditional tobacco.
Moreover, nicotine bags can be used in a wide range of scenarios. They can also be used in airports, high-speed rail meetings, training and other scenarios. They are highly private and will not hinder others.
