Competition is intensifying among the tobacco giants in the US. Philip Morris (Swedish Match in Sweden) is now focusing on stronger and cheaper nicotine pouches to keep its rival, British American Tobacco, at bay. This is reported by Reuters in connection with PMI’s second-quarter report for 2026.
Philip Morris International saw both its turnover and profits rise more than expected in the second quarter of the year. At the same time, the company has announced that it intends to invest more in its Zyn nicotine pouches, as competition in the US market intensifies.
This result is driven by continued strong sales of the company’s smoke-free products, with both IQOS and Zyn serving as key growth drivers. At the same time, sales of traditional cigarettes also rose slightly – mainly in countries such as Turkey, Indonesia and Egypt – which came as a surprise to analysts at the investment firm Bernstein.
New Zyn products on the way
According to Bernstein’s analysis, competition from British American Tobacco’s “Velo” has intensified in the US market. To defend its market share, Philip Morris is now launching new Zyn variants with both higher nicotine strength and a lower price. Further products are expected later this year.
The company also states that investment in production and marketing will increase in order to strengthen Zyn’s position in the rapidly growing US market.
FDA decision strengthens the company’s position
This initiative comes shortly after the US Food and Drug Administration (FDA) approved the marketing of certain Zyn products with information stating that a complete switch from cigarettes to white snus entails lower health risks. Philip Morris regards the decision as an important boost to the continued development of the category.
Despite the strong quarter, the company lowered its full-year forecast. This is primarily due to exchange rate fluctuations and increased costs, rather than weaker demand.
