Why Is Zyn Out of Stock?
2024-07-18
Why Is Zyn Out of Stock?
Over recent months, many consumers have noticed that Zyn nicotine pouches are frequently sold out both offline and online stores due to rising consumer interest in this popular nicotine product. There may be multiple factors at work here which contribute to these supply shortages such as an increasing popularity for Zyn.
Over recent months, many consumers have noticed that Zyn nicotine pouches are frequently sold out both offline and online stores due to rising consumer interest in this popular nicotine product. There may be multiple factors at work here which contribute to these supply shortages such as an increasing popularity for Zyn.
1. Surging Demand
A major contributor to Zyn nicotine pouch shortage is their explosive rise in demand, particularly over the first quarter this year when sales increased by 88%! As more consumers search out smokeless alternatives like Zyn, its supply has become inadequate to meet consumer needs - leaving many without access. This shortage has forced Philip Morris International (PMI), its manufacturer, to work harder at meeting customer demands for tobacco-free nicotine alternatives like Zyn.
2. Retail Shortages and Purchase Limits
Stores have struggled to maintain an adequate stock level of Zyn products due to rising customer demand, leading to frequent shortages that force some retailers to limit how many cans customers can buy each month in order to provide equal access for customers who still wish to access these essential medicines. Unfortunately, even this precautionary measure has failed to fully satisfy widespread consumer interest for this product.
3. Legal Challenge and Halt of Online SalesHalt
PMI has recently experienced legal obstacles which has only compounded its supply issue further. In June, The District of Columbia issued a subpoena demanding information about sales of certain flavored nicotine pouch products deemed illegal in certain areas, prompting PMI to temporarily stop online sales of Zyn nationwide in June due to legal pressure; this further limited availability, contributing to shortages.
PMI has recently experienced legal obstacles which has only compounded its supply issue further. In June, The District of Columbia issued a subpoena demanding information about sales of certain flavored nicotine pouch products deemed illegal in certain areas, prompting PMI to temporarily stop online sales of Zyn nationwide in June due to legal pressure; this further limited availability, contributing to shortages.
4. Expansion and Production Initiatives
To meet growing supply shortages and meet rising demand, PMI is investing significantly in expanding its production capabilities. Recently, they announced a $600 million investment for building a new factory in Aurora, Colorado which should open near the end of 2019; full production should occur by 2026. Furthermore, production at their existing Owensboro, Kentucky factory will increase with efforts geared at both increasing supply as well as creating export capacity to support international sales demand.
5. Market Share and Brand Loyalty
Zyn currently dominates the nicotine pouch market with over 70% market share of $8.6 billion market value by 2023. Although they hold such dominance, brand loyalty may yet develop among their consumer base; analysts speculate that supply shortages might force some customers away from Zyn and create opportunities elsewhere in the market.
Conclusion
Zyn nicotine pouch supply issues stemming from surging demand, retail shortages, legal challenges and ongoing production efforts has resulted in current supply issues for PMI products like Zyn nicotine pouches. As PMI expands manufacturing capacities to address these obstacles to availability gradually improve - until then however patience and flexibility may be necessary when seeking non-tobacco nicotine alternatives.