Philip Morris to invest $10 mln in development of nicotine pouch category in Ukraine in 2026
Philip Morris, which invested $5 million last year in promoting its ZYN nicotine pouch brand in Ukraine, plans to invest another $10 million this year in developing the nicotine pouch category and launching a new line of the brand, according to a press release posted on Tuesday.
"Over this time, we've seen significant growth in this category and significant interest in the product among adult consumers. The launch of this new line is the next step in our long-term strategy," said Maksym Barabash, CEO of Philip Morris Ukraine, in a press release.
According to him, investments will be directed, in particular, towards portfolio expansion, infrastructure creation, and raising the level of awareness among adult consumers.
It is noted that the launch of a new innovative smoke-free product for adult nicotine consumers is part of the company's long-term strategy to develop a multi-category portfolio of such smoke-free products.
The company clarified that the pouches in the new line, unlike traditional pouches, do not contain water, glycerin, or essential oils, making the pouches "dry," providing a slower nicotine release and a smoother user experience. Furthermore, they are smaller in size compared to other pouch lines in Ukraine, less flavorful, and have a lower nicotine content—from 1.5 mg to 6 mg per pouch. The line includes nine SKUs and three flavors.
Philip Morris clarified that nicotine pouches will initially be imported from Sweden, where the main production is located, and that the list of production countries will expand in the future.
According to Barabash, the company estimates the potential for growth in the nicotine pouch category in Ukraine at 20% per year in the future, and therefore continues to invest in the development of these innovative products.
"Nicotine pouches are a category that is actively growing in international markets and is gradually taking shape in Ukraine. We are expanding our portfolio to better meet the diverse needs of adult nicotine consumers and develop various formats within this category," added Roman Ivanov, Director of New Products at Philip Morris Ukraine.
He noted that the ZYN brand is one of the most famous nicotine pouch brands in the world and also the first nicotine pouch brand in the USA to receive marketing authorization from the FDA (US Food and Drug Administration), which is an important factor for further investment in the development of ZYN in Ukraine.
Philip Morris International (PMI) is a leading player in the tobacco market. The company has declared its goal to create a smoke-free future and is expanding its portfolio beyond tobacco and nicotine products for the long term. Since 2008, it has invested over $16 billion in the development, research, and commercialization of innovative smoke-free products for adult smokers.
In 2022, PMI acquired Swedish Match, a leader in oral nicotine products, establishing PMI as the global leader in the smoke-free category, led by the IQOS and ZYN brands. As stated in the release, as of the end of 2025, PMI's smoke-free products were available for sale in 105 countries worldwide, were used by 43 million adult consumers, and the smoke-free 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 its data, the company has invested over $750 million in the Ukrainian economy since then, and in 2025, it paid UAH 58.5 billion in taxes in Ukraine.
