Philip Morris to Invest $10 Million in Development of Nicotine Pouch Category in Ukraine by 2026

The investment comes after the successful launch of the nicotine pouch brand 'ZYN,' into which the company had already invested $5 million last year. Maxim Barabash, the CEO of Philip Morris in Ukraine, noted that the company has observed a significant increase in interest in this category of products among adult consumers. 'The launch of the new product line is the next step in our long-term strategy,' he emphasized in the release, highlighting the importance of further development and expansion of the product portfolio.

According to information provided by the company, the investments will be directed towards expanding the product range, creating the necessary infrastructure, and raising consumer awareness about the new products. The launch of this innovative smoke-free product for adult nicotine consumers is part of the company's long-term strategy aimed at developing a multi-category portfolio of smoke-free products.

Philip Morris also clarified that the new pouches entering the market differ from traditional ones. They do not contain water, glycerin, or essential oils, making them 'dry' and providing a slower release of nicotine, as well as a smoother user experience. The new pouches are smaller in size compared to other lines available in the Ukrainian market, less saturated with flavor, and have a lower nicotine content, ranging from 1.5 mg to 6 mg per pouch. The line includes 9 SKUs and three different flavors.

Initially, the nicotine pouches will be imported from Sweden, where the primary production is concentrated. In the future, the company plans to expand the list of manufacturing countries. According to Maxim Barabash, the company estimates the growth potential of the nicotine pouch category in Ukraine at 20% per year, which encourages further investments in the development of these innovative products.

Roman Ivanov, the director of new products at Philip Morris in Ukraine, emphasized that nicotine pouches are a category that is actively developing in international markets and is gradually taking shape in Ukraine. 'We are expanding our portfolio to better meet the diverse demands of adult nicotine consumers and to develop various formats within this category,' he stated.

It is noteworthy that the ZYN brand is one of the most recognized nicotine pouch brands in the world. It is also the first nicotine pouch brand in the United States to receive marketing authorization from the FDA (Food and Drug Administration), which is a significant factor for further investments in the development of ZYN in Ukraine.

Philip Morris International (PMI) is one of the leading players in the tobacco market. The company has announced its intention to create a smoke-free future and is developing its portfolio for the long term, moving beyond traditional tobacco and nicotine products. Since 2008, the company has invested over $16 billion in the development, scientific research, and commercialization of innovative smoke-free products for adult consumers.

In 2022, PMI acquired Swedish Match, a leader in oral nicotine products, which enabled PMI to become a global leader in the smoke-free product category, particularly through its brands IQOS and ZYN. As stated in the press release, by the end of 2025, PMI's smoke-free products will be available for sale in 105 countries, utilized by 43 million adult consumers, and the smoke-free product business accounted for approximately 41.5% of the company's total net revenue.

Philip Morris Ukraine has been operating in the Ukrainian market since 1994. According to the company, it has invested over $750 million in the Ukrainian economy since then, and in 2025, it paid 58.5 billion hryvnias in taxes in Ukraine.