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Nicotine pouches are taking a much larger role in the U.S. oral tobacco market as the category continues to shift toward the Nicotine Pouch format. In the second quarter of 2026, the overall nicotine pouch category accounted for 59.9% of the oral tobacco category, up 8.1 percentage points year over year and 1.8 points sequentially. So, who is leading this trend?

Watch this interview with Stacey Kennedy, Philip Morris' International, USA, CEO Stacey Kennedy, Philip Morris International U.S. CEO, details the $1.2 billion investment in their new ZYN nicotine pouch plant in Aurora, Colorado, highlighting its rapid construction and $550 million annual economic impact. Kennedy discusses ZYN's growing demand and recent FDA authorization, which she calls a 'most important endorsement' due to its reduced-risk health claims.

Why nicotine pouches, more than other available alternative options? But why pouches, more than other options? According to the report, it’s a mixture of practicality and “perceived health benefits.” Survey respondents viewed pouches as “healthier” (64 percent), “more discreet” (also 64 percent) and “less intrusive to others” (52 percent), compared to other nicotine products.







