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Nicotine Pouches Experience Rapid Growth
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Tobacco giant Philip Morris International (PM.US) has announced plans to invest $600 million through its U.S. subsidiary over the next two years to establish a cutting-edge manufacturing facility in Aurora, Colorado. This plant will produce Swedish Match's Zyn, a popular nicotine pouch brand, to meet the rising global demand for smoke-free products among legal-age consumers.
In 2022, Philip Morris International acquired Swedish Match, a nicotine pouch manufacturer, for $16 billion. The driving force behind this acquisition was the growth potential of Swedish Match's snus brand, Zyn Nicotine Free Vapes.
Swedish Match introduced the tobacco-free Zyn in 2017, becoming one of the first companies to move away from traditional tobacco products entirely. Zyn's launch marked a significant shift in the modern snus industry, sparking rapid growth. While snus has been used in Europe for centuries, it was primarily popularized in Sweden, leading to the rise of highly valued snus companies in the country.
Nicotine pouches, a type of modern snus, contain nicotine along with stabilizers, fillers, sweeteners, flavorings, and pH adjusters—but no tobacco. Users place them between the gums and upper lip, allowing nicotine to be absorbed through the oral mucosa and reach optimal levels within 15 to 30 minutes. These pouches offer numerous benefits, including being smokeless, odorless, and not requiring spitting.
Because nicotine pouches don’t produce smoke or involve inhalation, they reduce the risks associated with traditional cigarettes. Studies indicate that using nicotine pouches poses a lower risk compared to e-cigarettes and heat-not-burn products, and the risks are far less than those of traditional tobacco.
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