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.
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