Philip Morris International (PMI) Friday reported full-year 2025 net revenue topped $40 billion and that its smoke-free products accounted for more than 41% of the tobacco company’s total net revenues.
“Our business is increasingly smoke-free,” CEO Jacek Olczak told investors, according to a transcript from financial services site AlphaSense.
Modern oral nicotine pouch Zyn shipments in the United States grew 37%, “despite supply constraints in the first half, a significant price premium and the competitive portfolio gaps,” Olczak said.
In the United States, nicotine pouches accounted for a high single-digit percentage of total industry volumes and remained the fastest growing nicotine category, PMI said in a statement.
Zyn shipment volume in fourth-quarter 2025 reached 196 million cans, an increase of over 19%, PMI reported. Full-year Zyn shipment volumes reached 794 million cans.
“Nicotine pouches remain the fastest-growing US segment, representing a high-single-digit percentage of total nicotine industry volume,” Emmanuel Babeau, PMI’s CFO, said on the earnings call.
During the question-and-answer period, analysts asked about a proposed excise tax the state of New York is considering on nicotine pouches.
Olczak said PMI is aware of the proposal and that it would be “counterproductive to the health benefit for nicotine or smokers this product provides.”
New York Gov. Kathy Hochul has proposed taxing nicotine pouches as part of her fiscal year 2027 executive budget proposal.
The proposal would impose a tobacco excise tax on alternative nicotine products—noncombustible items that contain nicotine but not tobacco—which are currently untaxed under the state.
State officials estimate the change would generate $18 million in revenue for fiscal 2027, rising to $57 million annually by fiscal 2030, according to the state’s budget memo. The tax would take effect on or after Sept. 1.
In January, PMI presented evidence to the Food and Drug Administration recommending authorizing Zyn nicotine pouch products as a modified risk tobacco product.
PMI scientists presented data to the FDA’s Tobacco Products Scientific Advisory Committee (TPSAC) as part of the FDA’s process for a Modified Risk Tobacco Product (MRTP) designation for the company’s Zyn nicotine pouch products.
The Zyn nicotine pouch products submitted for the MRTP designation are the same products that received premarket tobacco product application (PMTA) authorization in January 2025.
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