By all appearances, Philip Morris International (PM) is having a moment. Fueled by the explosive popularity of its smoke-free nicotine pouch product Zyn, the company’s stock recently hit a record high, and Wall Street analysts still see “impressive growth” ahead. For an industry long maligned for its role in public health crises, this new chapter is being written in a smokeless, spitless, and odorless format that’s rapidly reshaping how Americans consume nicotine.
At the heart of the shift is Zyn, the discreet nicotine pouch that has taken the U.S. market by storm. Originally part of Philip Morris’ $16 billion acquisition of Swedish Match in late 2022, Zyn offers a tobacco-free alternative to traditional cigarettes and smokeless tobacco. And demand has skyrocketed. Shipment volumes to the U.S. soared from 132 million cans in Q1 2024 to 202 million in Q1 2025—so fast, in fact, that the product experienced a nationwide shortage starting in April 2024, which the company says will ease by Q3 2025.
The boom has prompted convenience store chains like Casey’s and Murphy USA to rearrange shelf space to accommodate nicotine pouches. Philip Morris now attributes 42% of its net revenue to its “smoke-free” business, which also includes IQOS heated tobacco and Veev e-vapor products. In the most recent quarter, smoke-free sales jumped 15% to $3.9 billion, while traditional combustible tobacco sales remained flat.
But behind the financial headlines and investor euphoria, a more complicated picture is emerging—one that public health experts and regulators are watching closely.
A Youth-Driven Surge
Zyn’s popularity owes a great deal to social media. Platforms like TikTok have helped the product go viral, with influencers showcasing Zyn’s easy-to-hide pouches and discreet use in schools, gyms, and offices. These pouches—available in multiple flavors and strengths (3 mg and 6 mg)—are marketed toward adult smokers as a cleaner alternative. However, research shows that youth use is skyrocketing.
Between 2019 and 2022, U.S. sales of nicotine pouches surged 641%, but only 2.9% of U.S. adults reported having used one. Instead, the most dramatic increase has been among young people. A 2023 study reported 400,000 youth currently using nicotine pouches, up from 200,000 in 2021. More than a quarter of current users are underage, and 73% of youth who try the product continue using it, often consuming a half can or more per day.
Depending on the strength, that daily use equates to the nicotine intake of 1 to 1.5 packs of cigarettes. Despite FDA restrictions requiring Zyn advertising to target only those 21 and older, it’s clear that younger users are finding, buying, and using these products with alarming regularity.
Health Claims Under Scrutiny
Many users and even some public commentary treat Zyn as a “healthier” alternative to smoking. After all, it doesn’t produce smoke, vapor, or require spitting—hallmarks of more stigmatized tobacco products. But “healthier” doesn’t mean healthy.
A 2022 chemical analysis of 44 nicotine pouch products found that 26 contained carcinogens, along with harmful compounds like ammonia, formaldehyde, nickel, and chromium. Nicotine itself remains a highly addictive neurotoxin, especially dangerous to developing adolescent brains. And despite claims of helping smokers quit, only 10% of adult users who were former smokers fully switched—suggesting most are simply substituting one addiction for another.
Moreover, while Zyn and similar products are often described as tools for smoking cessation, they are not approved by the FDA as quit aids, unlike nicotine patches or gums. Public health advocates warn this is just another chapter in the tobacco industry’s long history of rebranding to stay ahead of regulation and consumer backlash.
The Balancing Act Ahead
For now, Wall Street is betting big on nicotine pouches. Philip Morris’ pivot toward “smoke-free” products has paid off handsomely in financial terms. Gross profit from smoke-free products rose 27.7% in Q1 to $2.7 billion, and analysts expect more growth as supply stabilizes and international markets expand.
Yet, as with so many tobacco industry innovations, the public health costs may only become clear over time. Regulators, schools, and health professionals are already raising alarms. The question isn’t just whether Zyn is profitable—but whether it’s creating a new generation of nicotine-dependent users under the guise of harm reduction.
So, is Zyn a win? Financially, absolutely. But the public health jury is still very much out.
