PMI Performance Report: ZYN Soars with 50.3% Surge in US Sales, Marking 4 Consecutive Quarters of Growth

PMI by 2FIRSTS
Jul.25.2024
PMI Performance Report: ZYN Soars with 50.3% Surge in US Sales, Marking 4 Consecutive Quarters of Growth
Philip Morris International (PMI) releases Q2 and first half year performance report, showing significant growth in ZYN nicotine pouch sales.

On July 23, Philip Morris International (PMI) (NYSE: PM) released its performance report for the second quarter and first half of 2024. The report revealed that the shipment volume of the US ZYN nicotine pouch reached 135.1 million cans, an increase of 50.3% compared to last year. The shipment volume of canned oral smoke-free products (SFP2) also grew by 23.5%, indicating rapid growth in this segment of the market.

 

2FIRSTS analyzed the market performance of Philip Morris International's (PMI) ZYN nicotine pouches over the past year, aiming to provide an in-depth analysis of the market prospects for oral smokeless products, particularly nicotine pouches.

 

(1) Overview of the growth of ZYN nicotine pouch sales in the United States.

 

It is evident from PMI's 2024 Q2 and first half performance report that ZYN nicotine pouches, as a smokeless nicotine product, have garnered high acceptance among American consumers, with this type of product already capturing a significant market share in the US market.

 

PMI Performance Report: ZYN Soars with 50.3% Surge in US Sales, Marking 4 Consecutive Quarters of Growth
ZYN nicotine pouch sales performance in the US in the past year | Chart by: 2FIRSTS

 

Over the past four quarters, the shipment volume of nicotine pouches has consistently maintained a year-on-year growth rate of 50%.

 

In particular, the shipment volume of ZYN nicotine pouches in the United States reached 135.1 million cans in the second quarter of this year, an increase of 50.3% year-on-year; in the first quarter of this year, the shipment volume of ZYN nicotine pouches in the US also reached 131.6 million cans, an increase of 79.7% year-on-year.

 

In the first half of 2024, the total shipments of ZYN nicotine pouches in the United States reached 266.7 million cans, with the total shipments of canned oral products reaching 486 million cans.

 

In the fourth quarter of 2023, the sales volume of ZYN nicotine pouches in the U.S. was 1.163 billion cans, a 78.2% year-on-year increase; in the third quarter of 2023, the sales volume of ZYN nicotine pouches in the U.S. was 1.054 billion cans, a 65.7% year-on-year increase.

 

From the third quarter of 2023 to the first half of 2024, ZYN nicotine pouches have experienced four consecutive quarters of growth in the US market. Although the year-on-year growth rate and quarter-on-quarter growth rate decreased in the second quarter of 2024, overall growth momentum remains strong, with shipment volumes of nicotine pouches increasing by 63.5% compared to the first half of 2024.

 

(2) Overview of ZYN nicotine pouch sales in other regions in the past year.

 

In the second quarter of 2024, nicotine pouch sales outside the United States increased by over 50%, with new markets such as Pakistan performing well. In Europe, the shipment volume of nicotine pouches reached 11.8 million cans, a year-on-year increase of 26.9%. In the first half of 2024, the total shipment volume of nicotine pouches in Europe reached 24.1 million cans, a year-on-year increase of 40.2%.

 

In the fourth quarter of 2023, the shipment volume of ZYN nicotine pouches in the Scandinavian Peninsula (including Norway and Sweden) increased by 3.0% compared to the same period in 2022, with an annual shipment volume growth of 6.1%. In the third quarter of 2023, the shipment volume of ZYN nicotine pouches in the Scandinavian Peninsula also reached 7.5 million cans.

 

(3) Analysis of the market outlook for nicotine pouches.

 

By analyzing the market performance of ZYN nicotine pouches over the past year, it is evident that smoke-free nicotine products have significant market potential, especially in the global and US markets.

 

According to PMI's forecast, the shipment volume of ZYN nicotine pouches is expected to reach 560-580 million cans in 2024. Currently, the completion rate of this process is about 47%, and PMI also stated that they will further invest in ZYN to increase production capacity in the second half of this year.

 

Previously, Stacey Kennedy, President and CEO of PMI's US operations, announced during a press conference that PMI will be constructing a factory in Aurora, Colorado to produce ZYN nicotine pouches.

 

According to PMI, the $600 million investment in the factory is expected to bring 500 jobs to Colorado over the next two years. The factory is expected to hold a groundbreaking ceremony later this year and begin production in 2026.

 

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