Zyn remains the undisputed leader of the U.S. nicotine pouch market, but 2026 is shaping up as the year its grip starts to loosen. Rival Velo Plus has been steadily winning over users with a moister pouch and competitive pricing — and Philip Morris International just rolled out Zyn Ultra in direct response.
What happened
Zyn, owned by Philip Morris International, commands roughly 75% of the U.S. nicotine pouch market — a category Bloomberg pegs at around $7 billion. But Velo, made by BAT, has been gaining ground: BAT reported in mid-2025 that Velo had pushed past 17% market share, helped by the launch of Velo Plus and by periods when Zyn faced supply shortages. Bloomberg reported in May that a persistent "dry mouth" complaint with Zyn's drier pouch format was giving moister alternatives like Velo Plus an opening.
PMI's answer arrived this month. The company confirmed the U.S. launch of Zyn Ultra in June 2026 — a slim, moist pouch sold in 9mg and 11mg strengths in a 20-pouch can, a departure from Zyn's flagship mini, dry format and standard 15-pouch can. PMI also said Zyn Ultra would carry a lower price-per-pouch than the core range, an explicit move to defend share against cheaper, moister competitors.
Why it matters
For years, nicotine pouches were effectively a one-brand story. A genuine challenger forcing the category leader to change its product format and pricing is a sign the market is maturing fast. The core battleground is texture and value: Zyn's drier pouches are known for cleaner, longer-lasting flavor, while moist pouches like Velo Plus deliver a faster, bolder hit — and increasingly, more pouches per can at a lower price.
The timing also intersects with regulation. The FDA has been signaling more openness to authorizing nicotine pouches, which could expand the legal field and intensify competition even further.
What this means for pouch users
More competition is good news for anyone who uses nicotine pouches. Expect more formats (dry vs. moist), more strength options and — thanks to Zyn Ultra's pricing move — pressure on price-per-pouch across the board. If you've stuck with Zyn out of habit but found the dry format drying, the moist alternatives are now worth a side-by-side try. If you prefer Zyn's longer-lasting flavor, the new Ultra line gives you a moist option without leaving the brand. Either way, it's a buyer's market: compare can counts and price-per-pouch, not just the sticker price.
"Zyn Dry Mouth Problem Threatens Grip on Nicotine Pouch Market as Velo Plus Gains." — Bloomberg, May 2026
The bottom line
Zyn isn't losing its crown anytime soon, but the era of zero serious competition is over. Velo Plus has proven a moister, value-priced pouch can take real share, and Zyn Ultra is PMI's signal that it won't cede the moist segment without a fight. For pouch users, the result is exactly what a competitive market should deliver: more choice, better value and faster innovation.
