ZYN vs VELO: How the Nicotine Pouch Giants Compete in 2026

30 October 2026

Short answer

ZYN and VELO are two leading nicotine pouch brands, but their owners compete in different ways. Philip Morris International (PMI), which owns ZYN through Swedish Match, has a distinctive regulatory position in the United States. British American Tobacco (BAT), which owns VELO, has expanded rapidly through products including VELO Plus. Their 2026 reports point to intensifying price competition—but do not provide a simple like-for-like comparison of the two brands’ sales.

The FDA’s reviewed list includes 31 ZYN-branded products with marketing authorization. A separate decision permits a specific modified-risk claim for the original 20 products, not all ZYN products or all nicotine pouches. Nicotine is highly addictive; authorization does not mean a product is safe.

ZYN vs VELO at a glance

Owner: ZYN belongs to PMI through Swedish Match; VELO belongs to BAT.
Latest PMI US figure: ZYN shipments reached 3.2 billion pouches in Q3 2026, up 4.2% year on year.
Latest BAT US figure: Modern Oral volume reached 3.2 billion pouches in H1 2026, up 188%. This includes VELO Plus and Grizzly Modern Oral, not VELO alone.
BAT US share: the H1 report gives a 29.8% Modern Oral volume share. This is a category figure; report volume-share measures generally cover the year to May 2026.
ZYN international reach: PMI reports 62 international markets—not a worldwide total including the US.
FDA status: 31 ZYN-branded products have marketing authorization; 20 of those also have permission for the specified modified-risk claim. VELO is absent from the reviewed authorized-product list.

These measures cover different periods and businesses. Equal reported pouch volumes do not establish equal brand sales or market share.

How BAT gained ground in the US

BAT’s full-year 2025 announcement reported US Modern Oral volume of 3.5 billion pouches, up 249%, and an 18.0% volume share. In H1 2026, US Modern Oral volume reached 3.2 billion pouches, up 188% against the comparable half-year. BAT attributed growth to VELO Plus and Grizzly Modern Oral.

In its H1 presentation, BAT said VELO was driving around 90% of US Modern Oral category value growth. This does not mean VELO’s own sales grew by 90%, or that VELO held a 90% market share.

PMI, meanwhile, reported that US Oral SFP shipments—its oral smoke-free product category—fell 5.8% in the first nine months of 2026. That category figure should not be presented as a verified ZYN-only decline. US ZYN shipments rose 4.2% in the third quarter.

PMI’s response: more pouches at the same can price

According to the earnings-call transcript, PMI began transitioning its US 1.5, 3 and 6 mg flagship ZYN variants from 15 to 20 pouches per can in October 2026. The transition was expected to be largely complete in Q4. The transcript describes the can price as unchanged.

At an unchanged can price, moving from 15 to 20 pouches implies approximately 25% less revenue per pouch, all else equal. It is not a forecast that total ZYN or PMI revenue will fall 25%. Management also described a lagging revenue effect lasting around three quarters, alongside growing volume.

The expectation of US Q4 operating income around break-even or slightly negative was guidance, not an already reported result. These earnings-call statements are attributed to The Motley Fool’s transcript.

FDA authorization: two different decisions

On January 16, 2025, the FDA authorized marketing of 20 ZYN products. On June 30, 2026, those same products received separate permission to carry a specific modified-risk claim. On August 21, 2026, the FDA authorized marketing of 11 additional ZYN ULTRA products. That brings the ZYN-branded marketing-authorized total to 31—not 31 products with modified-risk authorization.

The June decision concerns a narrowly specified claim about reduced risk of certain diseases when the covered ZYN products are used instead of cigarettes. It must not be extended to ZYN ULTRA, VELO, the whole pouch category or a health comparison between ZYN and VELO. The FDA cautions that marketing authorization does not mean a tobacco product is safe or “FDA approved”.

VELO and VELO Plus do not appear on the reviewed FDA list of marketing-authorized nicotine pouches. That observation alone does not establish the legal position of every product or retailer during pending application processes. US decisions also do not automatically apply in Sweden or other countries.

Price and strength: compare the actual product

Tobacco Insider’s 2025 coverage reported a $5.59 manufacturer’s suggested retail price for a 20-pouch can of VELO Plus. This is a historical MSRP, not a verified current price at every retailer. Taxes, promotions and location affect what customers pay.

Compare price per pouch and nicotine in mg per pouch for the specific product. Names, ranges and strength labels differ by country; a strength in a US report may not describe a similarly named Swedish product. A nicotine figure describes content, not whether a product is safe or suitable for a particular person.

BAT’s position beyond the US

In its half-year presentation, BAT reported 63% volume share and 68.5% value share across its top AME Modern Oral markets. These are BAT’s selected markets and company-reported measures—not a share of all Europe or an independently verified Swedish brand share.

PMI separately reports ZYN availability in 62 international markets. Reach and share are different measures; operating in more markets does not automatically mean higher sales.

Manufacturing capacity behind the competition

PMI announced that its Aurora, Colorado facility began commercial ZYN production in July 2026. The company described total capital expenditures of $1.2 billion over 2024–2028. This is a multiyear investment programme, not an amount already spent by July.

What it means for retailers and other brands

Our interpretation is that competition increasingly centres on price per pouch, capacity and regulatory position. PMI combines ZYN’s established position with a higher pouch count per can. BAT’s reports show rapid category growth in which VELO Plus plays an important role, although not every reported figure is brand-specific.

For retailers, checking the exact product, destination country, nicotine content, pouch count and regulatory status is more useful than ranking brands by a single percentage. This is editorial analysis, not investment advice or a recommendation to start using nicotine.

Method and sources

Reviewed on October 30, 2026. Financial and share figures come from company reporting and use different periods and definitions; they are not independently verified here. The price reference is historical. Earnings-call statements are attributed to the transcript and are not presented as completed quarterly results.

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