The third quarter runs between July 1st and September 30th, and you could say that it’s been a long, hot summer for the nicotine pouch industry. The ZYN shortage finally came to an end in July (much to the delight of Prilla customers), but at the same time, competitor brands have continued to go from strength to strength.
It can be hard to keep up with so many brands and developments, but we’ve summarized the must-know stories in this report.
Key Takeaways:
- ZYN maker Philip Morris International has enjoyed a prosperous quarter, with 37% growth in its shipments of nicotine pouches.
- Sesh+ pouches received $40 million in investment and could be one to watch going forward.
- British American Tobacco has benefited from venture capital investments.
- Landmark products like FRE Watermelon 15mg and ZYN Ultra could be joining the market soon.
Q3 Earnings Results
With the third quarter of 2025 now behind us, many companies are publishing their earnings reports, including Philip Morris International and Altria.
Philip Morris International
One of the biggest stories is that Philip Morris International (PMI), the company behind the market-leading ZYN pouches, released its Q3 earnings reports. It has exceeded many of its own targets and the predictions of third parties, a trend largely driven by the success of the smokefree segment.
CEO Jacek Olczak said: "In the third quarter, we continued to invest in the growth of our increasingly profitable smoke-free business, while achieving record quarterly smoke-free gross profit.”
PMI’s smokefree sector is responsible for 41% of the company’s total net revenues. It continues to soar ahead of other brands, despite the hurdles it has faced since the ZYN shortage began.
Shipments of nicotine pouches within the US grew by 37% over the quarter, equating to 205 million cans. The company is also continuing to expand worldwide, with ZYN now available in 46 countries.
Altria
The maker of on! pouches, Altria, also announced its third-quarter results. However, the firm didn’t fare as well as PMI, experiencing a 1.7% decline in sales compared to one year ago.
Across the whole business — which also includes Marlboro cigarettes — the firm has experienced roughly the same revenue over the last three years, reflecting struggles to increase demand.
Still, the company remains hopeful about its future, especially its smokefree segment. It has recently launched the on! Plus range, which is also going to participate in a pilot program to fast-track the nicotine pouch review process.
CEO Billy Gifford said: “Our core tobacco businesses remained resilient; we advanced our smoke-free portfolio; and we opened new pathways for long-term adjacent growth in international modern oral and U.S. non-nicotine innovation.”
Sesh+ Enjoys Fundraising Success
In September 2025, Fortune reported that nicotine pouch brand Sesh+ raised $40 million in venture funding. Most of the money came from venture capital company 8VC, and other investors include musicians Diplo and Post Malone and the comedian Andrew Schulz. Will this gang of celebrities help drive it to success?
CEO Max Cunningham also revealed that the company is set to grow 500% between 2024 and 2025.
Since its launch in 2020, Sesh+ pouches have been positioned as a premium brand with unique innovations. One of its standout features is its unique formula — while other companies use nicotine salts, Sesh opts for MCT oil and a gum-based formula, which reduces irritation and creates more intensity. This has helped the brand to set itself apart in such a crowded market.
British American Tobacco Enjoys $1.46 Million Investment
Sesh+ isn’t the only market player to enjoy investment wins this past quarter. British American Tobacco (BAT) — the parent company behind VELO pouches — has also had some big news.
Verdence Capital Advisors LLC invested $1.46 million in the firm. It’s not the only company to have its eyes on BAT, as other hedge funds have invested, including Orbis Allan Gray Ltd (which increased its shares by 20.4%) and GQG Partners LLC (which increased its shares by 59.8%). Additional companies increased their holdings by more modest amounts, such as Newport Trust Company LLC and Envestnet Asset Management.
This increasing interest may be in part due to the perception of VELO as one of ZYN’s fiercest rivals. The brand is already the market-leading brand in Europe, and has positioned itself as more of a direct ZYN competitor in the US market since the launch of VELO Plus.
Upcoming Product Launches
Fans of fruity flavors and intensities, listen up, because an exciting new addition to the FRE pouches collection is coming soon. Manufacturer Turning Point Brands announced plans to launch FRE Watermelon, with strength levels up to 15mg. This is set to make it the first brand to offer fruity nicotine pouches in a full set of strengths (between 3mg to 15mg). Currently, most higher-strength pouches have minty flavor profiles instead.
Senior Brand Manager Alex Foster said: “Adult consumers were craving bold, authentic fruit flavors but were forced to settle for limited strength varieties. FRE Watermelon closes that gap.”
Word is also on the grapevine that ZYN could be about to unleash the next big thing, as Reuters reported that PMI is trying to obtain FDA marketing authorization for a new collection called ZYN Ultra. These pouches will be moist (unlike the flagship ZYN pouches, which have dry contents), possibly in a move to ensure the brand isn’t outshone by its moist competitors.
Some of the Prilla new arrivals for this quarter include:
- VITO Mango Fusion 6mg
- VELO Plus Tropical Heat 6mg
- VELO Plus Cappuccino (3mg, 6mg, 9mg)
- Grizzly Hunter Orange 12mg, Copperhead 12mg, Backcountry 12mg, Buckshot 12mg
- Sesh+ Cappuccino (4mg, 6mg, 8mg)
- Denssi Zeronic pouches
- ALP Sweet Nectar (6mg and 9mg)
Nicotine Market Stock Performance
Finally, let’s round things off by summarizing how the stocks of some of the industry giants performed over Q3.
Despite its solid performance elsewhere in the business, PMI’s stock fell over the period, from $177.53 at the start of July to $162.20 by the end of September. However, it’s still up 20% compared to last year. This may be due to the continued supply constraints and lack of promotional activity, both of which have put off investors. Will its fate change next quarter?
Meanwhile, Turning Point Brands (TPB) has enjoyed price appreciation of its stock, which started with a value of $72.8 and ended the quarter worth $98.86. The company has had a lot of success in recent months thanks to the success of ALP and FRE, and the former is enjoying significant publicity thanks to founder Tucker Carlson’s popularity.
British American Tobacco (BTI) has seen its price increase too, from $46.69 to $53.08. Overall, the company has been growing steadily, with a CAGR of 17% over the last five years, and investors are clearly taking notice.
The Altria Group, Inc. (MO), saw its stock rise from $58.14 to $66.06 over the third quarter. Investors are gaining interest in the company thanks to its recent moves to increase dividends.
Scandinavian Tobacco Group, the company behind XQS pouches, has had more modest success. It began the period with a stock price of $84.10, and grew slightly to $87.7. The stock is struggling to return to the heights of previous years (it was worth $122.4 at the start of 2024 and has only declined since then).
