Key facts
- Philip Morris International (PMI) is investing over $800 million in new Zyn manufacturing facilities in the U.S.
- Zyn pouch shipments in the U.S. increased by 62% in 2023, reaching 385 million cans.
- PMI plans to build a new factory in Aurora, Colorado, and expand an existing one in Owensboro, Kentucky.
- Public health experts are concerned about the addictive nature and potential appeal of Zyn to youth.
- PMI halted online Zyn sales after a subpoena from Washington, D.C.'s attorney general regarding flavored nicotine sales.
Philip Morris International (PMI) is significantly increasing its investment in Zyn, a popular brand of flavored oral nicotine pouches, by committing over $800 million to build new manufacturing facilities in the United States. This expansion aims to meet the rapidly growing demand for the product, which saw a 62% increase in U.S. shipments in 2023, reaching 385 million cans.
PMI plans to construct a new factory in Aurora, Colorado, and expand an existing facility in Owensboro, Kentucky, with the latter expected to boost production to approximately 900 million cans by 2025. This strategy is part of PMI's broader initiative to transition towards a "smoke-free future" by diversifying from traditional tobacco products.
Despite the promised economic benefits of job creation, public health experts have voiced concerns regarding the long-term health effects of oral nicotine pouches and their potential to attract young users. The products, which deliver nicotine discreetly, come in various flavors that may appeal to non-smokers. Data from the 2024 National Youth Tobacco Survey indicates that while youth use of oral nicotine products remains relatively low at 1.8%, a significant percentage of current users report frequent or daily use, highlighting the addictive nature of these pouches.
Concerns over sales practices have led to legal challenges. In June 2024, Washington, D.C.'s attorney general issued a subpoena to PMI, alleging that its online sales violated the district's ban on flavored nicotine. PMI responded by halting all online sales, which subsequently resulted in a nationwide shortage of Zyn. A similar lawsuit was filed in San Francisco in September 2024.