Philip Morris International is planning to invest $232 million in expanding a Kentucky factory that manufactures nicotine pouches as part of its initiative towards a “smoke-free future.” The expansion at the Swedish Match plant in Owensboro is anticipated to create 450 additional jobs, increasing the factory’s workforce by about 40% to cater to the rising demand for smoke-free products. ZYN nicotine pouches are produced at the western Kentucky facility, representing a growing market for nicotine-based alternatives for individuals transitioning away from cigarettes and other tobacco items.
The pouches are placed between the lip and gums to gradually release small amounts of nicotine that enter the bloodstream. Once the contents dissolve, the pouch is disposed of. The CEO of PMI’s U.S. business, Stacey Kennedy, expressed, “We are speeding up our mission towards a smoke-free future, collaborating with our U.S. affiliates to steer adults away from cigarettes and traditional tobacco products by offering improved alternatives.”
ZYN oral pouches consist of nicotine powder and various flavors like mint, coffee, and citrus. This product category is the fastest-growing segment of the tobacco industry, which has been striving to replace declining cigarette sales over the years. Although ZYN is marketed to adult tobacco consumers by Philip Morris International, regulatory bodies in the U.S. continue to classify it as a tobacco product.
Despite the absence of tobacco in these pouches, users are not required to spit as they did with older products like chew and snuff, due to the generally tobacco-free content. The FDA asserts that no tobacco product is risk-free, with cigarettes being recognized as highly harmful, raising the risks of cancer, heart conditions, and respiratory issues. Chewing tobacco is associated with oral cancer, gum problems, and tooth loss.
While acknowledging varying levels of harm among tobacco products, regulators and researchers have started recognizing distinctions in the health impacts of different options. Little is known about the long-term effects of nicotine pouches, but many experts predict comparable low levels of harmful substances and carcinogens compared to traditional tobacco products.
Acknowledging the ongoing factory expansion in Kentucky, Philip Morris International’s Swedish Match affiliates are overseeing the project. The construction at the Owensboro facility has commenced and is projected to be completed by the second quarter of 2025, with an estimated creation of close to 2,800 jobs. Following the expansion, the factory will transition to a continuous operation, running seven days a week, compared to the current 24-hour operation over five days at the facility.
Kentucky Governor Andy Beshear extended appreciation to Philip Morris International for reinforcing its investment in the state. The Owensboro site is situated 106 miles southwest of Louisville, Kentucky. PMI had previously announced a $600 million investment in establishing a new nicotine pouch manufacturing plant in Aurora, Colorado, through its U.S. affiliate. This, alongside the expansion in Owensboro, aims to meet the growing demand for ZYN in the U.S. market in the near and mid-term future.
