Retail stores are experiencing shortages of ZYN nicotine pouches, disrupting the fastest-growing segment of the nicotine product market. Despite rumors about the cause of these supply issues, ZYN manufacturer Swedish Match North America asserts that the problem is simply due to rapidly increasing demand for the popular nicotine pouches.
“We’ve heard the chatter and want you to know there have been no manufacturing disruptions to US ZYN operations,” the company stated on its Facebook page on July 1. “We are aware that locations are experiencing low inventory of ZYN, and we can assure you that the dedicated teams behind America’s #1 Nicotine Pouch are working tirelessly to increase production capacity as quickly as possible.”
Swedish Match raised ZYN prices in March, and at least one major online retailer has recently limited the number of cans customers can purchase each month. However, demand continues to outpace the company’s manufacturing capacity.
ZYN is the leading nicotine pouch brand, holding more than 70 percent of the $8.6 billion U.S. market in 2023. ZYN nearly doubled its sales between 2021 and 2023. However, the popular brand could begin to lose loyal customers if it remains unable to meet demand.
“The category is still very young, so there is no strong brand loyalty, and consumers are likely to try new brands,” Euromonitor analyst Raphael Moreau told Tobacco Reporter in January. “This makes the market attractive to new entrants. And there’s quite a lot of room for them, as the category is growing very fast.”
Swedish Match recently suspended online sales from its ZYN.com site after the District of Columbia Attorney General subpoenaed the company for information about flavored ZYN sales in D.C. The company, however, claims that ZYN.com sales represent just a small percentage of its total sales.
Swedish Match, which is also the world’s largest producer of Swedish snus, was acquired by Philip Morris International (PMI) for $16 billion in 2022. The acquisition provided PMI with an immediate entry into the U.S. market. PMI is also relaunching its IQOS heated tobacco product (HTP) in the U.S. this year.
