Zyn Faces Shortages and Subpoenas, Chinese Brands Swiftly Fill Market Gap

Market by 2FIRSTS.ai
Jul.11.2024
Zyn Faces Shortages and Subpoenas, Chinese Brands Swiftly Fill Market Gap
Supply shortages and legal troubles force PMI's Zyn nicotine pouch brand to halt online sales in the US, attracting new competitors.

According to a recent report by Bloomberg, the nicotine pouch brand Zyn owned by Philip Morris International (PMI) is facing a double pressure of supply shortages and subpoenas, leading to the suspension of its online sales in the United States. In response, a large number of competitors have entered the market, vying to capture market share.

 

California wholesaler Apex Distribution's sales manager, Song Jo, expressed at last month's trade show in Houston, the Alternative Products Expo, 

 

Due to Zyn's current decrease in sales and ongoing manufacturing issues, we hope to seize the opportunity and capitalize on this momentum.

 

He unveiled a nicotine pouch brand named after former professional basketball player Dennis Rodman at the exhibition.

 

According to market research firm Euromonitor International, the nicotine pouch market in the United States reached $6 billion last year, and is expected to reach $18 billion by 2027. The company reported that sales of Zyn increased by 80% in the first quarter.

 

However, after receiving a subpoena from the Colombian district, PMI decided to suspend online sales nationwide, exacerbating supply shortages.

 

This has opened up the market for many new nicotine pouch brands, with many of these brands coming from China, filling a market gap. These manufacturers mostly adopt strategies that have been successful in gaining market share in the e-cigarette market.

 

A large tobacco company is combating the influx of flavored disposable e-cigarettes manufactured in China and is beginning to take notice of competitors in the nicotine pouch market.

 

Altria Group Inc. Executive Director Steven Callahan stated

 

You will notice the increase in illegal e-cigarette devices, as well as the growth of nicotine pouches.

 

A spokesperson for PMI declined to comment on the competition involving Zyn or whether Zyn is protected by patents.

 

Chris Howard, Executive Vice President of Swisher International, stated that the slow authorization of products by the FDA has led to a significant increase in illegal e-cigarette sales, and he hopes that nicotine pouches will not encounter the same situation.

 

William Chaw, project manager of Granch Biopack, a Chinese tobacco materials manufacturer, stated that his company manufactures nicotine pouches for the "L Vape" brand and plans to soon launch brands such as "Zombie Nic" and "Pure Zyn" in the United States.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Special Report|South Korean Lawmaker Queries China Tobacco Regulator Over Synthetic Nicotine as Export-Rule Gaps Emerge
Special Report|South Korean Lawmaker Queries China Tobacco Regulator Over Synthetic Nicotine as Export-Rule Gaps Emerge
A South Korean lawmaker has asked China’s tobacco regulator to clarify rules for e-cigarettes containing synthetic nicotine amid questions over product declarations and possible tax losses. The dispute exposes gaps between Chinese export requirements and destination-market rules, while underscoring the global impact of China’s licensing and traceability policies.
Jul.10
South Korean Lawmaker Jeong Jin-wook Pushes Synthetic Nicotine Vape Probe, Highlighting Supply Chain and Tax Concerns
South Korean Lawmaker Jeong Jin-wook Pushes Synthetic Nicotine Vape Probe, Highlighting Supply Chain and Tax Concerns
South Korean lawmaker Jeong Jin-wook has again called for stronger government action against liquid synthetic nicotine vape manufacturers and sellers, alleging that some businesses may have avoided regulation through product labeling changes and corporate restructuring. According to Newsworks, JNILBO and other Korean reports, Jeong has held his third press conference on the issue, calling for a government-wide investigation. The dispute involves whether synthetic nicotine products should fall under tobacco regulations, tax implications and supply-chain transparency. South Korean government agencies have previously said some estimates of potential tax losses cannot be verified due to limited sales data.
Jul.27
From Border-Logistics Insiders to Retail Service Stations, Australia Mounts a Sweeping Crackdown on the Illicit Nicotine Trade as iGET Vapes Surface in A$80 Million Crime Networks
From Border-Logistics Insiders to Retail Service Stations, Australia Mounts a Sweeping Crackdown on the Illicit Nicotine Trade as iGET Vapes Surface in A$80 Million Crime Networks
Australian authorities have disclosed two major enforcement actions that go beyond product seizures and retail closures to examine how illicit tobacco and vape networks operate. On Aug. 14, the Multi Agency Strike Team said seven people had been charged and two criminal networks were valued by authorities at a combined A$80 million, or about US$56.8 million. Investigators allege the groups used bonded warehouses, freight businesses and “trusted insiders” in legitimate industries to circumvent border controls. In a separate operation on Aug. 11, more than 100 service stations were targeted as authorities sought information on illicit tobacco importation, distribution networks and the movement of sales proceeds.
Aug.17
Special Report|AIR H1 Revenue Rises 3.7% as Shisha Volumes Fall 9%, Testing Its Shift Beyond Traditional Hookah
Special Report|AIR H1 Revenue Rises 3.7% as Shisha Volumes Fall 9%, Testing Its Shift Beyond Traditional Hookah
AIR’s first half-year results as a listed company offer a new test of how far a traditional hookah business can transform. H1 2026 revenue rose 3.7%, even as Flavored Shisha Molasses shipments fell 9%, with pricing and mix supporting growth. Traditional shisha still generates almost all revenue, while OOKA, Crown Switch, Greentank and U.S. regulatory spending point to accelerating diversification. The next test is whether those investments can become a second business of meaningful scale and profitability.
Capital Markets
Aug.21
Germany Seizes 56 Pallets of Illegal Vapes, Probe Estimates €1.8 Million Tax Loss
Germany Seizes 56 Pallets of Illegal Vapes, Probe Estimates €1.8 Million Tax Loss
German authorities have seized dozens of pallets of illegal disposable vapes in a criminal investigation, with the products estimated to have caused at least €1.8 million in tax losses. The case has also raised concerns over cross-border supply chains linked to unauthorized nicotine products entering the European market.
Jul.14
BAT New Categories Revenue Rises 18% in H1 2026 as Broad Portfolio Offers More Ways to Win—and Lose
BAT New Categories Revenue Rises 18% in H1 2026 as Broad Portfolio Offers More Ways to Win—and Lose
British American Tobacco’s New Category revenue rose 18% at constant rates in the first half of 2026. Nicotine-pouch brand Velo expanded rapidly, while Vuse recovered as U.S. enforcement against illicit e-vapor products strengthened. Heated-tobacco platform glo remained under pressure, and cigarettes continued to provide most of the group’s profit and cash. Compared with PMI and JT, BAT has more routes to growth—but also greater regulatory, investment and execution risks across its broader portfolio.
BAT
Jul.30