Companies & brands · 26 October 2026 · Updated 31 October 2026 · Stefan Bensmo

ZYN vs VELO: how the two biggest nicotine pouch brands compete (2026)

Short answer: ZYN (Philip Morris International) and VELO (BAT) are the two largest nicotine pouch brands, but they compete in very different ways. ZYN holds the regulatory high ground in the US, with 31 FDA-authorized products and the only modified-risk claim for nicotine pouches. VELO grew to nearly 30% of US volume in 2026 by competing on price and strength, and BAT claims leadership across Europe. In October 2026, PMI answered with what amounts to a 25% price cut per pouch.

ZYN vs VELO at a glance

Volume figures come from the companies’ own reports and are not fully comparable: PMI reports US shipments per quarter, BAT per half-year, and the share figures use different periods and measures.

How VELO caught up in the US

ZYN dominated the US for years, and supply could not keep up with demand: in 2024, shortages hit stores across the country (read our analysis of the ZYN shortage). At the end of 2024, BAT launched VELO Plus at a much lower price per pouch. According to BAT, VELO’s share of US volume rose from about 6% in November 2024 to 24% at the end of 2025 (Tobacco Insider) and averaged 29.8% in the first half of 2026, when VELO accounted for about 90% of the category’s value growth in the US (BAT).

At the same time, ZYN’s US shipments fell 5.8% in the first nine months of 2026, even though they rose 4.2% in the third quarter (PMI). ZYN still holds the larger share of category value, because it sells at a higher price.

PMI’s answer: more pouches for the same price

From October 2026, ZYN’s main strengths – 1.5, 3 and 6 mg – are sold with 20 pouches per can instead of 15, at the same price. PMI’s CFO described it as roughly 25% less revenue per pouch, and the company expects the effect to show for about three quarters. US marketing spend has also risen sharply, and PMI guided for US operating income of around zero in the fourth quarter (PMI earnings call). The change also matters for state taxes; see our overview of nicotine pouch taxes by state.

Regulation: ZYN’s moat, VELO’s risk

The FDA has authorized 31 ZYN products: 20 in January 2025 and 11 ZYN Ultra products in August 2026. In June 2026, ZYN also became the first nicotine pouch allowed to claim that using it instead of cigarettes lowers the risk of several diseases (FDA). On 30 October 2026 the FDA authorized the first 24 VELO products: VELO Mini Pouch and Mini Pouch 2 in eight flavour names, all at 4 mg nicotine and in three package types (FDA). None of them is VELO Plus or a higher-strength product, and VELO has no modified-risk claim; BAT says it has filed further marketing and modified-risk applications (FDA list). Most of VELO’s US volume is still sold while applications are pending, which is common in the category but leaves BAT more exposed if enforcement tightens. Read more about ZYN Ultra and the FDA process.

Which is stronger, ZYN or VELO?

In the US, the strongest authorized ZYN is ZYN Ultra Smooth at 11 mg per pouch, while ZYN’s regular range runs from 1.5 to 8 mg. VELO uses a dot scale in Europe, where the strongest products reach about 17 mg per pouch. The VELO pouch most searched in Sweden, VELO Crispy Peppermint, has 10 mg. For product-by-product comparisons, ratings and flavours, see ZYN and VELO on SnusBattle.

Europe: BAT’s home ground

BAT reports 63% volume share and 68.5% value share across its top modern oral markets in Europe, including Sweden, Denmark, Norway, Switzerland, the UK and Poland (BAT). These are BAT’s own figures. PMI reports that ZYN grew about 30% outside the Nordics in 2026. We have found no audited brand shares for Sweden for 2026.

Manufacturing

ZYN for the US is made in Owensboro, Kentucky, and since July 2026 also in Aurora, Colorado, where PMI is investing about $1.2 billion between 2024 and 2028 (Pulse 2.0). VELO Plus for the US is made in Tobaccoville, North Carolina (Tobacco Insider).

What it means for other brands

Our read The two leaders show two different paths to scale. PMI builds a regulatory and premium moat: authorizations, a health claim and a single brand. BAT builds share through price, strength and a broad portfolio. For smaller brands, the price war between the two is the bigger story: when the leaders cut price per pouch, the space for mid-priced challengers narrows. Brands without FDA authorization should not plan to win on price alone in the US, and in Europe the fight is increasingly about strength, format and regulation rather than flavour. Read more about who owns ZYN and the global nicotine pouch market.