Jefferies has published updated rankings of leading tobacco companies, centering on developments in the oral nicotine pouch segment as brands vie for market leadership. The firm's review examines March data across volume trends, pricing behavior, and individual brand performance, set against the broader industry shift toward smoke-free offerings.
In its assessment, Jefferies focused on recent sales figures and brand positioning within the oral nicotine category to determine which players are currently best placed. The report underscores that nicotine pouches are a focal growth area for tobacco companies moving away from combustible products.
Jefferies ranking and firm-level notes
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1. Philip Morris International - Philip Morris International retains a leading position in Jefferies ranking largely due to the performance of its ZYN pouch brand. Jefferies highlights that ZYN continued to command premium pricing even as its volume expansion slowed in March.
ZYN recorded volume growth of 2.4% in March, down from 7.1% in February. The price per unit was reported at $6.80 in March versus $6.90 in February, keeping it above the category average. Jefferies added that although ZYN may face some targeted promotional activity in the near term, the firm views aggressive downward price competition across the oral nicotine pouch category as unlikely.
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2. British American Tobacco - Jefferies cited BAT and its Velo brand as a primary driver of category volume and value growth. The brand displayed strong momentum in March, contributing significantly to overall gains.
Velo posted month-over-month volume and value growth of 197.2% and 247.2%, respectively, compared with February figures of 232.9% and 274.8%. Despite a tougher comparison base, Velo added 14.1 million units in March, a modest increase from 13.5 million units in February. The brand accounted for 88.4% of total volume growth in the category, and its price per unit rose to $5.20 from $5.10 in February.
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3. Altria - Altria s on! brand showed volume declines in March while preserving relatively strong pricing power, according to Jefferies.
on! recorded volumes and value changes of -15.5% and -5.2%, respectively, in March, versus February changes of -17.6% in volume and value growth of 1.2%. Jefferies noted that price per unit for on! recovered to $4.60, well above the 52-week average of $3.00. The firm views this as a sign that the upcoming on! Plus may be positioned at a premium, bringing its pricing closer to that of ZYN and Velo.
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4. Imperial Brands - Imperial Brands Zone brand showed sequential improvement in March, though Jefferies expressed skepticism about Zone s potential to scale meaningfully in the US market at present.
Zone recorded sequential volume and value growth of 31.3% and 39.9% in March, compared with February figures of 37.5% and 38.2%. While Zone achieved slight share gains, the brand remained a relatively limited contributor to overall category growth, and Jefferies considers its prospects to become a substantial challenger in the US as constrained.
Takeaway - Jefferies analysis frames the oral nicotine pouch category as a competitive arena where pricing and volume trends are shaping the relative fortunes of major tobacco players. ZYN retains premium pricing despite slower volume expansion, Velo continues to supply the bulk of category growth, on! is managing pricing amid falling volumes, and Zone shows modest improvement but limited upside in the US, per Jefferies.