Big Tobacco is pushing into higher-strength nicotine pouches in the US as part of an intensifying battle for dominance in a fast-growing $5bn market. Most pouches in the US have historically had between 3mg and 6mg of nicotine, but sales of more potent versions are growing much faster and now account for 17 per cent of volumes, according to Stifel’s analyst Matt Smith. The trend got a boost when the FDA cleared an 11mg variant of Philip Morris International’s Zyn Ultra, the highest-strength product authorised by the US regulator.

Three months earlier, the FDA changed its enforcement strategy to allow some new pouches to stay on the market while awaiting review, enabling faster rollouts. Philip Morris started rolling out its 9mg and 11mg Zyn Ultra pouches in June. British American Tobacco plans to launch its Velo Max in 8mg and 12mg by end of September, while Altria plans national expansion for its 12mg On! Plus pouches.

Almost 21bn nicotine pouches, valued at $5.2bn, were sold in the US last year, more than half of global sales. Sales of smokeless nicotine products grew over 8 per cent in the first half of this year, while cigarette sales dropped 2.4 per cent. Cigarettes made up almost 70 per cent of nicotine products sold, but Big Tobacco sees pouches as a growth engine, with BAT, Philip Morris and Altria accelerating US investments.