Q3 2025 Nicotine Pouch Market Snapshot: Earnings, Funding, and What’s Next

The July to September quarter of 2025 was busy for the nicotine pouch category. The well known ZYN shortage eased early in the quarter, which helped supply catch up with demand. At the same time, competitors leaned into new ranges and wider retail reach. Fresh funding arrived for a challenger brand, and a few product hints showed where the category could be heading in 2026. This post sums up the quarter in plain language. No hype, no health claims, and no advice to buy or sell anything.

Key takeaways

• PMI reported strong smoke-free results. ZYN shipments in the United States continued to grow.
  

• Sesh+ announced new funding, which shows investors still see room for growth in modern oral products.
  

• British American Tobacco drew new interest from funds, which supports its steady push with VELO.
  

• Two product signals stood out. FRE highlighted a fruit flavor at higher strengths. Reports suggested a moist ZYN line is in the works.
  
  

Earnings at a glance

Philip Morris International had the clearest momentum. The company pointed to record gross profit from smoke-free products and kept focus on scaling modern oral. In the United States, ZYN shipments rose about 37 percent in Q3 to roughly 205 million cans. Across PMI as a whole, smoke-free products made up around 41 percent of net revenue. Distribution also widened, with ZYN now available in about 46 countries. Those numbers underline how central pouches have become PMI's strategy.

Altria, which owns on!, told a different story. Group revenue was a little lower year over year, although the last three years looked fairly stable. Management highlighted the on! Plus range and noted participation in an FDA pilot program that aims to speed up reviews for nicotine pouches. If that pilot gains traction, it could help shorten the time from concept to market for some products.

Funding news

In early September, Sesh+ announced about 40 million dollars in new funding. The round was led by 8VC and included several well known co-investors. Company leaders also talked about strong growth versus last year. Sesh+ continues to lean on formulation as a point of difference. The brand uses MCT oil and a gum-based matrix rather than the usual nicotine salts. The goal is a smoother feel and stronger perceived intensity. The funding gives Sesh+ more runway to test the idea at scale through distribution and retail programs.

Institutional interest

British American Tobacco, the owner of VELO, picked up new or larger positions from a handful of funds in the quarter. One public filing showed a buy of about 1.46 million dollars by Verdence Capital Advisors. In Europe, VELO remains ZYN’s closest rival. In the United States, VELO Plus continues to sharpen the lineup so it can compete more directly on strength, flavors, and overall feel.

What the pipeline hints at

Two product notes deserve attention from retailers and category managers.

1. FRE Watermelon up to 15 mg. Turning Point Brands signaled a fruit flavor that spans the full strength ladder from 3 mg to 15 mg. Most higher strength products today lean on mint or wintergreen. A fruit flavor at 15 mg suggests the category is testing new territory in taste and potency.
   
   
2. Reports of a “ZYN Ultra” line that is moist. ZYN is best known for its dry pouches. A moist line would change the mouthfeel and onset and could close perceived gaps with moist competitors. Final specs and timing are not known. Any U.S. launch would depend on regulatory steps and how PMI chooses to position the line.
   
   

Stock snapshots

Price moves over the quarter did not match operating trends in a simple way. Here are the quarter-start to quarter-end snapshots as referenced in the source article. Treat them as context only.

• PMI moved from about 177.53 dollars to about 162.20 dollars.
  

• Turning Point Brands (TPB) moved from about 72.80 dollars to about 98.86 dollars.
  

• British American Tobacco (BTI) moved from about 46.69 dollars to about 53.08 dollars.
  

• Altria (MO) moved from about 58.14 dollars to about 66.06 dollars.
  

• Scandinavian Tobacco Group moved from about 84.10 dollars to about 87.70 dollars.
  
  

Always check official market data if you make financial decisions. This post is not investment advice.

What to watch in Q4 and into 2026

Format convergence. If a moist ZYN variant reaches the U.S. market with authorization, the fight at the premium end may pivot toward flavor systems, fit, and feel, along with brand perks such as rewards programs and reliable supply.

Higher strength fruit flavors. FRE’s Watermelon line at up to 15 mg hints at broader experimentation above the 10 to 12 mg tier. Watch how brands communicate with adult consumers and how they handle compliance on flavor names and descriptors.

Regulatory pace. Companies participating in the FDA pilot will look for signs that reviews are moving faster. The real test will be how many applications are accepted and what conditions appear on labels or formulas.

Capital allocation. Brands with fresh funding, like Sesh+, will likely spend on distribution, retail marketing, and formulation R&D. That could nudge shelf space toward faster movers and clearer stories.

Final note

Q3 2025 showed a category that is still growing up. Supply caught its breath, leaders stayed aggressive, and challengers raised money to push their ideas forward. The next few months will tell us whether moist formats, higher strength fruit flavors, and the FDA pilot turn into visible changes on the shelf. For now, the signal is clear. Modern oral is still evolving, and the most interesting moves may come from how brands fine tune feel, flavor, and availability for adult consumers.