Zyn, a well-known brand of nicotine pouches made by the global tobacco company Philip Morris, has been in the news a lot lately, but the product has been tough to find. However, the shortage of Zyn may be ending soon as Philip Morris has revealed plans for a $600 million factory in Colorado to make the product.

Let’s dive into the many controversies surrounding Zyn and how it became so popular with the power of memes.

Nicotine Pouches Are Gaining Traction

Nicotine pouches which by design are intended to help people quit smoking, are consumed by placing the pouch between the gum and the cheek or upper lip. The nicotine is then primarily absorbed through the oral mucosa.

In recent years, smokeless tobacco and nicotine products have become more popular as they are viewed as less risky than cigarettes. The Centers for Disease Control and Prevention estimates that 2.1% of adults in the US use smokeless tobacco, but it does not separate the data for nicotine pouches. It’s no surprise that these products are a major growth area for tobacco companies, with smoke-free products accounting for 39% of Philip Morris’ revenues in Q1 2024.

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In Q1 2024, Zyn shipments grew 80% to 132 million units. The company said that it expects to ship 560 million Zyn cans in the US in 2024 which, for context, is significantly higher than the nearly 385 million cans that the company sold in 2023. Zyn’s sales have risen sharply over the last few years and the appetite for the product looks far from over.

Philip Morris Announces a New Factory to Increase Zyn Production

The company has doubled down on smoke-free products in its portfolio and said that its 2023 capex of $1.3 billion was primarily towards increasing their production capacity. The company guided for a 2024 capex of $1.2 billion which it said would be towards expanding capacity for smokeless products – including in the US.

Now, the company has formally announced a $600 million investment to set up a factory in Colorado which would help address the shortage of Zyn. Currently, the company produces Zyn only at its plant in Owensboro, Kentucky, which apparently can’t make these fast enough to satiate the soaring demand.

In his statement, PMI (Philip Morris International) Americas President and US CEO Stacey Kennedy said, “PMI and its U.S. affiliates are accelerating their mission to move adults who smoke away from cigarettes in the U.S. by investing in new U.S. manufacturing capacity to meet the increasing demand for nicotine options that are scientifically substantiated as better alternatives.”

Zyn shortage also featured during Philip Morris’ Q1 2024 earnings call, and in response to an analyst question on the issue CFO Emmanuel Babeau pointed to the strong shipment growth and added “that is indeed creating some tensions on the supply chain without any doubt.”

While Babeau said that out of stock is not “the proper word” he would use for the supply situation, he added, “I think that maybe some time a preference is not going to be available. Not everything is going to be fully available in the range at a certain point in time.”

The Colorado factory will likely end the shortage but it will only become operational in 2025, and in the meantime, Zyn buyers might face some difficulty finding the product. Once the factory is running, the Zyn will flow again and Philip Morris will probably see its revenues soar (if it can keep demand high).

While sales of nicotine pouches have been strong across different brands, Zyn is especially popular and it’s the only brand suffering a major shortage due to demand. For instance, competitors like Velo, made by British American Tobacco, On!, made by Altria Group, and Rogue from Swisher International Group are in ample supply.

Zyn’s road to becoming a smash-hit product was quite unusual. Instead of being propelled by various advertisements, it blew up all because of a grassroots meme campaign by its users.

Zyn demand has soared, thanks to an unofficial army of so-called “Zynfluencers” that promote the brand on various social media platforms with memes of all kinds. Right-wing influencer Tucker Carlson has also backed the product. saying, “Zyn is not a sin.”

Online influencers are helping aid the demand for Zyn and so are the many social media videos posted by first-time Zyn users sharing their experience using the pouches.

According to Ollie Ganz, a Rutgers University tobacco and nicotine researcher, “There’s this online subculture around Zyn that’s been spearheaded by younger males, but a lot of that’s not coming from the brand itself.”

Kathy Crosby, CEO of anti-tobacco advocacy group Truth Initiative also expressed concerns about Zyn getting popular through online memes. and said, “It’s concerning to see the countless Zyn-related memes and hashtags that are being amplified and normalized across social media.”

Nicotine Products Are Not Risk-Free

Observers are comparing the growing sales of these nicotine products to that of Juul vapes which were famously popular with children, roping them into nicotine addictions for years. The Biden administration banned Juul in 2022, but the US Food and Drug Administration subsequently rescinded its marketing ban.

It’s important to remember that Zyn, like all nicotine products, is not risk-free. Nicotine is extremely addictive, no matter what form it comes in. Many reports show that children below the legally mandated age of 21 are also using the addictive product regularly. Also, many Zyn consumers were not smoking before they started using it and some were pushed into the product through social media accounts promoting the product. This defeats the (supposed) intended purpose of these pouches which is to help people quit smoking.

Even Online Sales Halt Hasn’t Put Brakes on Zyn Sales

The shortage worsened last month after Philip Morris banned online Zyn sales in the US. Its subsidiary, Swedish Match North America (SMNA), received a subpoena from the Attorney General of the District of Columbia, forcing the company to halt online purchases.

Senate Majority Leader Chuck Schumer, who previously fought for tobacco regulations and e-cigarette bans in schools, now sees Zyn as his next battleground and has called for federal action against the popular product.

Lawmakers have quite a nuanced opinion when it comes to nicotine products and cannabis and the Biden administration has cracked down on Zyn while supporting a federal cannabis legalization. Countering the Democrat crackdown on Zyn are two conservative groups – Americans for Consumer Protection and Building America’s Future – that have launched a campaign calling on lawmakers to “Save Our Pouches.”

While the crackdown on Zyn might be well-intentioned, so far it seems it is only helping fuel the sales of imitating products – predominantly imported from China – prompting many to draw parallels with e-cigarettes where the crackdown on Juul only led to a flurry of competing brands.

As for Zyn, even the online sales crackdown hasn’t hurt sales much as buyers have been grabbing the popular nicotine pouches in stores. As the proposed Colorado factory comes online, it would help Philip Morris further cement its leading market position in the industry by addressing the shortage situation.