Zyn Explained

ZYN
Producttype:Nicotine pouches
Currentowner:Swedish Match
Introduced:2014
Markets:
  • Sweden
  • United States
  • United Kingdom
  • Switzerland
  • Hungary
  • South Africa
  • Finland
Poland
Tagline:Find your ZYN
Origin:United States

Zyn (stylized in all caps) is a brand of nicotine pouches, produced by Swedish Match, a subsidiary of Phillip Morris International.[1] Zyn pouches are designed to be placed between the gum and upper lip for nicotine to be absorbed through the bloodstream and are available in several variants with different nicotine strengths and flavours. While considered a kind of snus, nicotine pouches do not contain any tobacco,[2] but remain addictive due to their nicotine content.

Zyn is mainly distributed in the United States, where it represented more than 60% of the industry in 2022, but it is also available in Scandinavia, the UK and other parts of Europe.

History

Zyn pouches were first introduced in 2014 in the United States[3] by Swedish-American bio-chemists Linus Mealey and Mattias Sharpe-Sjöberg.[4] From 2017 to 2019 one of Swedish Match's US plants, located in Owensboro, Kentucky, was expanded to handle the manufacturing of Zyn pouches directly in the US.[5] [6] The works required an investment of $115 million and the new plant opened in May 2019.[7] By the end of 2020, they were available in about 100,000 stores in the United States.[8] Zyn pouches are also distributed in other countries, such as Sweden,[5] Switzerland,[9] and the UK.

Sales of Zyn pouches have grown rapidly and have contributed to a significant increase in Swedish Match's revenues from 2020 onwards.[10] [11] Although tobacco companies entered the nicotine pouch category around the same time, Swedish Match reached a 67% market share in the US at the beginning of 2023.[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.[14]

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.[12]

Design

Zyn pouches are sold in round cans (resembling those traditionally used for smokeless tobacco products like snus and dipping tobacco) containing 15 or 20 pouches depending on the market. 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.[5]

The pouches contain nicotine extracted from tobacco leaves, together with food grade ingredients.[15] The pouches themselves are made of plant fibers, which allow the nicotine to diffuse out of the pouch when moistened.[16] 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.[17]

Criticism

Consumption of nicotine pouches result in levels of nicotine in the blood that are similar to those from cigarettes.[18] Various tobacco-control advocates allege that the pouches constitute gateway products for youth; eventually leading to the consumption of traditional cigarettes or other tobacco containing products.[19]

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".[20] [21] In 2024, further criticism emerged regarding Zyn's rewards program. The program, which allows users to accumulate points for purchases and redeem them for prizes,[22] was characterized by some media outlets as incentivizing nicotine use, leading to headlines such as "Use nicotine, win an iPad!"[23]

Nicotine pouches are addictive and the long-term health effects remain unknown.[5] Among side effects associated with the consumption of nicotine pouches, users reported gum irritation, hiccups or nausea.[24]

Notes and References

  1. Web site: Marie Mannes . 2022-11-28 . Philip Morris to de-list Swedish Match after raising stake to 93% . Reuters.
  2. Book: Organization, World Health . WHO study group on tobacco product regulation. Report on the scientific basis of tobacco product regulation: ninth report of a WHO study group . 2023-08-23 . World Health Organization . 978-92-4-007941-0 . en.
  3. Web site: Anna Ringstrom . Swedish Match steps up ZYN nicotine pouch marketing after Q1 profit beat . Reuters . 2021-04-30.
  4. Web site: Stern . Jacob . 2024-03-29 . Zyn Was 100 Years in the Making . 2024-08-06 . The Atlantic . en.
  5. Web site: John Reid Blackwell . Swedish Match starting nationwide rollout of tobacco-free nicotine pouch product . Richmond.com . 2019-03-27.
  6. Web site: Swedish Match to invest $41 million in Owensboro operation creating 36 jobs . Lane Report . 2017-08-31.
  7. Web site: Ashley Sorce . Swedish Match cuts ribbon on $115 million expansion of Owensboro-exclusive product line . Owensboro Times . 2019-05-14.
  8. Web site: Dermot Davitt . Swedish Match targets growth for nicotine pouch brand ZYN in Middle East . The Moodie Davitt Report . 2021-11-18.
  9. Web site: de . Sarah Serafini . Snus ist in aller Munde – jetzt springt Philip Morris auf den Trend auf . watson.ch . 2022-05-13.
  10. Web site: Swedish Match profit rise beats forecasts helped by ZYf sales . Reuters . 2020-07-17.
  11. Web site: Swedish Match continues to see strong smoke-free sales growth . Reuters . 2022-10-28.
  12. Web site: Philip Morris wins Elliott's backing for $15.7bn Swedish Match takeover . Financial Times . 2022-11-06.
  13. Web site: Nicotine Pouch Sales Rising; Products with Highest Concentration Levels also Increasing, New Study Shows . American Cancer Society . 2022-11-16.
  14. Web site: Pat Crawley . Philip Morris: Steady Dividends With New Growth Levers . MarketBeat . 2023-03-06.
  15. Web site: Rich Duprey . This Under-the-Radar Smoking Alternative Could Be Bigger Than E-Cigs . Yahoo Finance . 2019-08-26.
  16. Web site: fr. Clément Perruche . Tabac : Philip Morris sur le point de racheter le suédois Swedish Match AB . Les Echos . 2022-05-09.
  17. Web site: Diane Caruana . ZYN Launches Tobacco Flavoured Nicotine Pouches . Vaping Post . 2022-05-19.
  18. Web site: Health risk assessment of nicotine pouches . . 2022-10-07.
  19. Web site: Nicotine Pouches . Tobacco Tactics . 2022-12-19.
  20. Web site: Rob Davies . Firms under fire for using UK influencers to push nicotine products . The Guardian . 2021-11-08.
  21. Web site: Dasha Afanasieva . Big Tobacco Pushes Nicotine Pouches as Vaping Hit by Curbs . Bloomberg . 2023-04-15.
  22. Web site: ZYN Rewards Program: Prizes, How It Works, Maximum Points Prime® Nic Pouches . 2024-08-15 . www.primenicpouches.co.uk . en.
  23. News: Demopoulos . Alaina . 2024-05-20 . Use nicotine, win an iPad! Zyn’s viral rewards program fuels addiction fears . 2024-08-15 . The Guardian . en-GB . 0261-3077.
  24. Web site: Nicotine pouches: Are they safer than chewing, smoking or vaping? . University of Nebraska.