NBC News: ZYN Shortage in US Sparks Frustration Among Nicotine Pouch Consumers

PMI by 2FIRSTS
Jun.24.2024
NBC News: ZYN Shortage in US Sparks Frustration Among Nicotine Pouch Consumers
ZYN shortage in the US sparks frustration among nicotine pouch consumers, impacting availability and prompting concerns over alternatives.

According to a report by NBC News on June 23, the shortage of ZYN in the United States has caused dissatisfaction among many users of nicotine pouches.

 

Since its launch in 2014, ZYN has experienced a significant increase in sales, especially driven by a wave of online creators (known as "ZYNfluencers") and endorsements from prominent podcast hosts such as Joe Rogan and the Nelk Boys, leading to explosive growth in sales.

 

In April of this year, Philip Morris reported that since acquiring ZYN manufacturer Swedish Match for $16 billion in 2022, ZYN's shipments have surged by 80% year-on-year to reach 131.6 million cans. According to tobacco journalists, ZYN now accounts for approximately three quarters of the purchase volume of smokeless oral products.

 

A spokesperson for PMI acknowledged in a statement that ZYN is facing "short-term inventory constraints" driven by demand.

 

An increasing number of adult smokers are choosing ZYN as a better alternative to continue their habit, without any regulatory or production issues affecting distribution.

 

Many ZYN users have expressed dissatisfaction with the difficulty of obtaining the product.

 

The CEO of the software startup company, James Perkins, stated:

 

I can only temporarily switch to other brands to solve the shortage issue, which is not ideal, but given the current situation, it is the only option.

 

On TikTok, content creator Hayden Iverson has dubbed this shortage the "ZYNdemic," and stated that he will be conserving his usage. He mentioned that at the end of May this year, he visited four different stores near Boca Raton, Florida, in search of ZYN, but was unable to find it.

 

They used to be easy to find, but now they are a bit hard to come by.

 

Allen Iverson's video received thousands of likes and hundreds of comments, with many people also expressing that they have encountered the same issue.

 

Some ZYN fans speculate that a factory fire at a Swedish Match Company in March may have affected the supply. At the time, a representative of the company told the Swedish media outlet Aftonbladet that there would be no risk of shortages.

 

A spokesperson for PMI announced that Swedish Match, the manufacturer of ZYN, is investing in expanding and diversifying production in the United States, including increasing capacity at the Owensboro, Kentucky factory. The factory is also undergoing process adjustments to increase output, ensure stable supply, and the spokesperson stated that this situation will continue to improve within the next year.

 

In addition, PMI plans to build a new ZYN production facility by the year 2025.

 

However, users may still have to wait for some time before they can feel the improvement in supply. Earlier this month, Emmanuel Babeau, the Chief Financial Officer of Philip Morris International, stated that supply will only "return to normal" by the end of this year.

 

Although the company stated that the majority of sales occur in physical stores, they recently announced a suspension of shipments from the ZYN.com website in response to subpoenas from Washington D.C., further fueling concerns about potential supply disruptions.

 

Even while waiting for restocks, Perkins stated that he remains loyal to this brand.

 

Other brands are simply trying to imitate ZYN in hopes of achieving similar results, but many of them are not doing a good job. Either the taste is too strong and unpleasant, or the quality of the nicotine pouches themselves is poor.

 

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Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


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