August 2026: ASF Launches LOOP Nicotine Pouches in South Africa as Altria and KT&G Target Global Expansion
Swedish manufacturer ASF (Another Snus Factory) has officially launched its flagship nicotine pouch brand, LOOP, in South Africa. The rollout marks a key milestone in expanding the brand’s footprint across the African continent, backed by global tobacco powerhouses Altria Group and KT&G Corporation, who jointly acquired ASF to scale its modern oral nicotine portfolio worldwide.
The initial commercial rollout is being managed in partnership with local importer and distributor Venture South (Pty) Ltd. Retail placement will focus on key metropolitan hubs, including Johannesburg and Cape Town, before expanding across South Africa’s broader distribution network.As Africa’s largest economy and its biggest market for nicotine pouches, South Africa serves as a strategic regional launchpad for ASF. The company aims to establish a retail foothold in the country before leveraging that presence to enter additional high-growth markets across Sub-Saharan Africa.
The initial launch includes three signature products featuring LOOP’s distinct spicy-and-fruity flavor pairings and strong nicotine formulations:LOOP Jalapeño Lime Hyper Strong, LOOP Red Chili Melon Hyper Strong and LOOP Habanero Mint Hyper Strong.
The expansion follows the strategic acquisition of ASF by U.S.-based Altria Group and South Korea’s leading tobacco producer, KT&G Corporation. Having built a solid base in Nordic markets – including Sweden, Norway, and Iceland – ASF was acquired to accelerate the international reach of its flagship LOOP brand. Under the partnership, Altria and KT&G are integrating LOOP into their broader global distribution channels, targeting key expansion zones across Western Europe, the Middle East, Asia, North America, and Africa.The move comes as major tobacco and nicotine manufacturers continue to shift resources toward smoke-free alternative categories to meet growing international adult consumer demand.
April 2026: Philip Morris Deepens Ukraine Bet with New ZYN Line and 20% Growth Outlook
Philip Morris International (PMI) is stepping up its investment in Ukraine’s nicotine pouch segment, committing an additional $10 million in 2026 to expand the category and introduce a new line under its flagship ZYN brand. This follows a $5 million investment in 2025, signaling growing confidence in local demand and the long-term role of smoke-free products in the market.
The new product line is positioned as a differentiated offering within PMI’s portfolio. It consists of nine SKUs across three flavors, with nicotine strengths ranging from 1.5 mg to 6 mg per pouch. Notably, the pouches are “dry” (free from water, glycerin, and essential oils), smaller in size, less flavored, and designed to deliver nicotine more gradually, targeting a smoother user experience and potentially appealing to new adult users. Investment will focus on portfolio expansion, infrastructure development, and consumer awareness, reflecting PMI’s broader strategy of building a multi-category smoke-free ecosystem. Initial supply will be imported from Sweden with scope to diversify production sources over time.
PMI sees substantial upside in Ukraine’s nicotine pouch segment, projecting annual growth of around 20%. While still an emerging category locally, pouches are already experiencing strong momentum globally, driven by their positioning as smoke-free alternatives and their increasing adoption among adult consumers. This growth trajectory underpins PMI’s continued capital allocation and product innovation in the market.
April 2026: France Nicotine Pouch Ban Forces BAT to Withdraw VELO from Market
British American Tobacco (BAT) has confirmed it has stopped selling VELO nicotine pouch products in France as of April 1, 2026, in compliance with a French government decree issued in September 2025 that has now entered into force. The French regulation effectively bans the manufacture, sale, import, purchase, possession, and use of nicotine pouches and other oral nicotine products that are not classified as medical nicotine replacement therapies. The measure represents a major regulatory setback for the nicotine pouch category in Europe.
BAT has criticized the decision, arguing that the ban was introduced through regulation rather than parliamentary legislation and that it runs counter to harm reduction strategies aimed at encouraging smokers to switch to non-combustible products. The company also noted that the decision comes at a time when tobacco and nicotine regulation is being reviewed at the European level, including potential revisions to EU tobacco legislation.
France is now one of the strictest markets in Europe regarding nicotine pouches, and the decision highlights increasing regulatory pressure on the category across the region. The withdrawal of VELO from France demonstrates how national regulation can quickly remove entire product categories from major markets and may influence regulatory discussions in other European countries considering how to regulate emerging nicotine products such as nicotine pouches, heated tobacco, and e-cigarettes.
March 2026: Spain’s Nicotine Pouch Market Shows Early-Stage Expansion with Strong Growth Outlook
The Spanish nicotine pouch market appears to be transitioning from a niche segment into a more structured growth phase, with clear signs of rapid volume expansion and increasing consumer uptake. Sales reached 5 million cans in the most recent year and are expected to rise by 60%, reaching c.8 million cans by 2026. Despite this growth trajectory, the category remains relatively underdeveloped. The market currently includes between 20 and 30 brands, indicating fragmentation and an early-stage competitive landscape. Nevertheless, consumption patterns suggest that adoption is shifting from an initially tourism-driven demand base toward broader domestic uptake, with notable acceleration observed between 2024 and 2025.
Pricing and taxation data indicate a relatively high fiscal burden despite the absence of a fully defined regulatory framework. A typical can is priced at around €5, with 28% of the price attributable to excise duty alone, rising to 49% when value-added tax is included. Additionally, the tax structure includes a levy of approximately €0.10 per gram.
Overall, the Spanish market can be characterized as small but expanding rapidly, with strong projected growth, increasing product availability, and evolving consumer adoption. At the same time, regulatory uncertainty – particularly around potential nicotine limits as low as 1mg per pouch – could materially alter the category’s trajectory and potentially constrain its development.
March 2026: Philip Morris to Launch ZYN Nicotine Pouches in Portugal After Tax Clarification
Philip Morris International (PMI), through its Portuguese subsidiary Tabaqueira, plans to begin selling ZYN nicotine pouches in Portugal later this year after the government introduced a specific excise tax category for nicotine pouches in the 2026 state budget. The measure formally places tobacco-free oral nicotine products within the country’s special consumption tax framework, providing the regulatory clarity needed for companies to launch the category. Ahead of a broader national rollout, Tabaqueira is currently conducting a soft launch in two stores to test the product before expanding distribution nationwide.
Under the new rules, nicotine pouches will be taxed at about €0.065 per gram and are defined as tobacco-free products containing natural nicotine intended for oral use. The government expects the revised framework to increase tobacco-tax revenues by €71 million, bringing total collections to €1.67 billion, partly “as a result of the expected growth in private consumption.” For PMI, the launch represents another step in expanding its smoke-free portfolio internationally as it continues to roll out the ZYN brand across new markets.
January 2026: PMI and BAT Launch ZYN and VELO in Argentina as Buenos Aires Issues Health Alert
Philip Morris International (PMI) and British American Tobacco (BAT) have introduced their respective oral nicotine pouch brands, ZYN and VELO, into Argentina. The launches make nicotine pouches the first – and currently only – next-generation nicotine category legally available in the country, where both electronic cigarettes and heated tobacco products remain strictly banned. PMI has reportedly sought to overturn Argentina’s heated tobacco prohibition, though those legal efforts have so far been unsuccessful.
The market expansion has drawn an immediate regulatory response from local health authorities. The Ministry of Health of the Province of Buenos Aires issued an official health alert concerning the accelerating circulation, promotion, and consumption of nicotine pouches across the region.
Citing Provincial Law No. 13,894, which aims to protect public health by restricting the marketing and consumption of tobacco and nicotine products, particularly among youth, provincial officials warned that nicotine pouches currently lack sanitary authorization. Health authorities cautioned that the pouches can deliver nicotine concentrations comparable to or higher than conventional cigarettes, posing cardiovascular and neurological risks to children, adolescents, and other vulnerable groups. The alert further emphasized that nicotine pouches are not approved as smoking-cessation aids and that no nicotine product is risk-free.
November 2025: Nicotine pouch sales soar in Ireland
British American Tobacco (BAT)’s Irish affiliate, PJ Carroll, stated that its VELO nicotine pouches sales increased almost five fold from 6 million pouches in 2023 to 29 million pouches in 2024 in Ireland. Nicotine pouch revenue soared by 442%. PJ Carroll launched VELO nicotine pouches in June 2023, and VELO contributed 3% of the overall net revenue in 2023 and c.15% in 2024. VELO is the category leader in Ireland with 45.9% share in 2024.
PJ Carroll reported gross revenue of €179.43 million in 2024 which includes €145.67 million in excise duties and other taxes. Weight of combustibles in total revenue decreased from 75% in 2023 to 71% in 2024, while the revenue from the sale of vapes increased by 2%. PJ Carroll’s overall net revenues increased by 11% from €30.53 million to €33.75 million, driven by strong growth in VELO and continued momentum in the vape segment offsetting 11% decline in combustible volume (to 200 million sticks). Pretax profits at PJ Carroll & Company Ltd last year declined by 8% to €5.69 million with cost of PJ Carroll’s 22-person staff totalled €1.3 million. Illicit and duty-free sales, combined, represented 37% of the Irish market in 2024.
July 2024: BAT Halts Kenyan Nicotine Pouch Sales and Sells Factory Equipment Amid Regulatory Stalemate
British American Tobacco (BAT) Kenya has suspended sales of modern oral nicotine pouches and agreed to sell off its local manufacturing machinery, marking a sharp reversal for the company’s regional emerging market strategy. The decision, disclosed during BAT Kenya’s H1 2024 earnings release, stems from prolonged regulatory uncertainty that disrupted product supply and continuously blocked the inauguration of the company’s dedicated nicotine pouch plant in Nairobi.
The operational exit marks a dramatic turn for BAT in East Africa. In its full-year 2023 financial report, the parent company highlighted Kenya as a key blueprint for modern oral nicotine adoption, noting that an accelerated nationwide rollout in January 2023 drove a nearly fourfold increase in adult consumers.
However, ongoing regulatory impasses regarding category classification and commercial oversight ultimately paralyzed operations. Unable to secure a viable regulatory framework for domestic sales or regional export channels, BAT Kenya confirmed it has accepted offers to sell the Nairobi facility’s equipment, effectively shuttering its local production ambitions.
June 2024: Health Canada Orders Retail Recall of Unauthorized ZYN Nicotine Pouches
The Government of Canada has issued a retail-level recall for ZYN nicotine pouches, citing that the popular brand is currently being sold across the country without the required regulatory approval. The federal recall affects eight ZYN product variants across a range of flavors, including Apple Mint, Black Cherry, Citrus, Cool Mint, Original, Espresso, Spearmint, and Bellini. Except for the 1.5mg Spearmint variant, all recalled products contain 3mg of nicotine. Health Canada specified that the depth of the recall extends to the retail level, requiring merchants to remove the unauthorized inventory from store shelves.
In Canada, nicotine pouches containing less than 4mg of nicotine are regulated as “Natural and Non-prescription Health Products.” As such, manufacturers are required to obtain explicit market authorization from Health Canada before distributing products commercially. The regulatory crackdown on ZYN comes amid intensified national scrutiny over oral nicotine products. The category has faced severe social and political backlash since late 2023, following the launch of ZONNIC by Imperial Tobacco Canada (a subsidiary of British American Tobacco), which remains the first and only nicotine pouch line to receive market authorization from Health Canada.
May 2024: BAT’s Pakistan Unit Targets $100 Million Export Revenue with VELO Shipments to Japan
Pakistan Tobacco Company Limited (PTC), a subsidiary of British American Tobacco (BAT), has announced plans to generate $100 million in annual export revenue by shipping VELO modern oral nicotine pouches to Japan. The ambition was unveiled during the launch of the company’s “Made in Pakistan 3.0” initiative, marking a significant strategic milestone for PTC.
First launched in April 2019 to support the Pakistani government’s broader export agenda, the “Made in Pakistan” framework initially focused on exporting traditional cigarettes and processed tobacco, generating over $157 million since its inception. The latest phase shifts focus toward higher-value, smoke-free nicotine products for major international markets.
The export push comes as BAT seeks to capitalize on Japan’s distinct nicotine market structure. Nicotine-containing vapes are virtually non-existent in Japan due to strict pharmaceutical regulations, leaving heated tobacco products to capture 42% of the total combined cigarette and heated tobacco market in the absence of other non-combustible alternatives. With modern oral nicotine pouches still in an embryonic stage of consumer adoption, BAT aims to establish VELO as a primary alternative category for Japanese consumers seeking smoke-free options.
May 2024: Philip Morris International Accelerates Global ZYN Expansion Across Nine Markets
Philip Morris International (PMI) is expanding the global footprint of its flagship nicotine pouch brand, ZYN, launching or re-launching the product across nine markets outside the United States and Scandinavia, alongside select international travel retail channels. Speaking at the Jefferies Virtual Reduced Risk Seminar, PMI management confirmed that the market rollouts span key territories across Europe, Asia, and Africa:
– Europe: United Kingdom, Switzerland, Hungary, Iceland, Finland, and Latvia
– Asia: Pakistan and Philippines
– Africa: South Africa
In addition to national market entries, PMI is introducing ZYN to select Duty Free retail locations globally. The international push marks a strategic move by PMI to extend the reach of its fast-growing modern oral nicotine portfolio beyond its core U.S. and Nordic strongholds, advancing the company’s broader transition toward smoke-free nicotine alternatives.
February 2024: BAT Highlights Emerging Market Growth for Oral Nicotine Amid Regulatory Friction in Kenya
British American Tobacco (BAT) is framing modern oral nicotine as a cornerstone for its emerging markets strategy, even as localized regulatory hurdles disrupt regional production in East Africa. In its full-year 2023 earnings report, the parent company pointed to rapid consumer adoption in developing regions as proof of concept for its smokeless nicotine category. In Pakistan, strong consumer acquisition enabled BAT to achieve its highest active user base globally in the modern oral category as a percentage of total population. Meanwhile, an accelerated national rollout in Kenya in January 2023 resulted in a nearly fourfold surge in adult consumers. BAT executives noted that results from both markets provide the operational framework needed to unlock the category’s potential across emerging economies globally.
However, the company’s global momentum faces immediate headwinds on the ground in East Africa. In a financial update released a week later, subsidiary BAT Kenya struck a more cautious tone, reporting that ongoing regulatory uncertainty regarding modern oral nicotine has severely disrupted domestic pouch supply. BAT Kenya disclosed that the regulatory impasse has hindered its ability to utilize its dedicated nicotine pouch manufacturing facility in Nairobi for both local market distribution and planned export channels. The operational bottleneck highlights the ongoing friction between corporate growth ambitions for next-generation products and volatile regulatory landscapes in key regional hubs.
September 2023: PMI Discloses ZYN Expansion Plans
Philip Morris International (PMI) targets 800 million to 1 billion nicotine pouch cans volume by 2026, mostly from the US, and expects international growth (outside the US) only in the mid-/long-term. Regulatory uncertainty (i.e. legal status of the product) and consumer readiness are the two impediments to ZYN’s progress in the international markets. In the foreseeable future, geographical presence of nicotine pouches seems to remain restricted to the US, Nordics and a select few markets with regulatory clarity.
55% of PMI’s oral nicotine revenue is already associated to ZYN sales in the US. This figure is set to increase as ZYN US is growing much faster (3-year volume CAGR: 51%) than the rest of the oral nicotine category. Thereby, it is all about the continuity of “stellar performance” of ZYN in the US in the 2024-2026 planning period. On 12-month rolling basis (ending June 30, 2023), PMI shipped 292Mn ZYN cans to the US market and reported more than 40% sequential growth. PMI needs ~30% annual volume growth in ZYN US shipments in order to achieve its “800Mn-1Bn cans by 2026” target. This seems to be – more or less – achievable considering the ongoing sales momentum in the US (i.e. ongoing velocity growth in the Western region and eventual extrapolation of the Western region’s performance to the Rest of the US) and the competitive restrictions brought in by the US FDA’s PMTA process.
PMI expects the US nicotine pouch category to be 3 times of its current size in 2030. This is not implausible. PMI also mentions $3.5Bn net revenue form US ZYN in 2030 assuming the same category share (i.e. 76.8% by value). This is implausible. Why? (1) The competition will heat up as BAT and Altria become able to introduce new/better products to the market (i.e. once the PMTA bottleneck is cleared out). Recall that PMI has 58% share in snus and only 15% share in nicotine pouches in Nordics (Swedish Match’s own turf); (2) US States and even the Federal Government will eventually start introducing/increasing excise on nicotine pouches.
As a summary, PMI’s 2026 nicotine pouch target seems reasonable. However, it will be more problematic to keep the growth momentum going beyond 2026 – especially if an unfavorable regulatory environment builds up in the international markets.
