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HEALTH | News
Based on facts, either observed and verified firsthand by the reporter, or
reported and verified from knowledgeable sources.X


ZYN NICOTINE POUCHES ARE FLYING OFF SHELVES. CRITICS SAY THEY'RE DANGEROUS FOR
KIDS

Jordan Valinsky


CNN Digital

Contact

Published Thursday, February 8, 2024 6:49PM EST Last Updated Friday, February 9,
2024 9:19AM EST

Move over vapes, Americans appear to have a new addiction: Zyn, a tobacco-free
nicotine pouch product that has exploded in sales over the past year. (Michael
M. Santiago/Getty Images)


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NEW YORK -- Move over vapes, Americans appear to have a new addiction: Zyn, a
tobacco-free nicotine pouch product, that has exploded in sales over the past
year.

Philip Morris announced Thursday that it shipped about 350 million cans of Zyn
in 2023, a whopping 62 per cent growth compared to the previous year. Shipments
typically correlate to sales even if they represent a slightly different measure
of demand.

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Growth is expected to continue this year with the company looking to ship more
than 520 million cans, bolstering the Marlboro maker’s full-year forecast.

Zyn has become a cultural sensation in the past year, attracting the attention
of Gen-Z consumers who have become loyal buyers of the product. It is aimed at
adults 21 and up who already use nicotine, according to Zyn’s website.

“We follow the law and voluntarily do more than regulations require,” a company
spokesman said in a statement. “For example, we age-gate our digital channels to
21-plus and do not use social media influencers in the US. Beyond that, we
regularly request the removal of inappropriate content online.”

A can of Zyn costs about US$5 for about 15 pouches (in a variety of flavours)
that contain various amounts of nicotine and are absorbed in a person’s gum and
lip over an hour, then spit out. Nicotine is very addictive and can harm young
people’s developing brains, according to the U.S. Centers for Disease Control
and Prevention.

However, like Juul, the popularity and growth of Zyn might face difficulties, in
particular from U.S. government.

By law, anyone who makes or sells “non-tobacco nicotine” must comply with FDA
regulations, which include not selling to people under 21, not giving away
samples and not making claims that their products are less harmful than
cigarettes without FDA authorization.

Last month, Senate Majority Leader Chuck Schumer urged the Federal Trade
Commission and Food and Drug Administration to investigate Zyn on how it’s being
marketing to young people.

“I’m delivering a warning to parents, because these nicotine pouches seem to
lock their sights on young kids—teenagers, and even lower—and then use the
social media to hook them,” Schumer said in a press conference. “Zyn is the next
battle.”

In response, a Phillip Morris spokesperson said that Zyn’s “marketing and
advertising are strictly directed” to customers 21 years and older and those
materials only include people aged 35 and over.

Despite the growth, shares of Phillip Morris declined 2 per cent in early
trading because of lower demand for cigarettes. Big Tobacco has gradually
shifted their focus away from cigarettes to smokeless alternatives, like vapes
or “heatsticks”, for people to get their nicotine fix.

In 2022, Phillip Morris bought Zyn-maker Swedish Match to help the company’s
pivot to investing in more “smoke-free products.”

CEO Jacek Olczak said in the earnings release the newer products now encompass
40 per cent of total revenue, led by the growth of Iqos heated tobacco products
that have surpassed the traditional Marlboro brand’s revenue.

“The fourth quarter also marked the first anniversary of our combination with
Swedish Match, which delivered very strong results in 2023 driven by the stellar
US performance of Zyn,” Olczak said.

The company said it is spending about US$1 billion this year to invest in
bolstering U.S. production of Zyn to meet demand.

CNN’s Carma Hassan contributed to this report.


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