On June 9, 2026, nineteen U.S. state attorneys general sent a formal letter to Formula 1 and its governing body, the FIA. They raised concerns about two nicotine brands — Zyn and Velo — appearing on Ferrari and McLaren race cars. Both brands are owned by big tobacco companies: Philip Morris owns Zyn, and British American Tobacco owns Velo.

Here's the core issue: these products are not traditional cigarettes. They are small pouches of nicotine that sit between your lip and gum. Because they don't contain tobacco leaf, they exist in a gray area. Formula 1 has banned tobacco advertising for decades, but the rules were written before nicotine pouches existed. So it's unclear whether the current ban applies to these products.

The letter was not a surprise. Earlier in 2026, health groups had already called for a ban, warning that tobacco companies were using F1's massive youth audience — the sport airs to millions of young viewers worldwide — to make their nicotine brands look cool and aspirational. In December 2025, Ferrari had already expanded Zyn's presence on its cars, which sharpened the controversy.

Why the Tobacco Companies Care So Much

The market for nicotine pouches is growing fast and worth billions of dollars.

In 2025, the global market was worth $7 to $8.6 billion, according to the WHO and market analysts. Projections show it could hit $56.7 billion by 2035. In the United States, the market is even larger — it was valued at $3.95 billion in 2024 and is expected to reach nearly $50 billion by 2033. That represents a growth rate of roughly 32.5% per year. For a tobacco company, that trajectory matters. A product category growing that fast is where they expect to make their future money.

Philip Morris is betting big on this growth. The company opened a major manufacturing facility in Aurora, Colorado in early 2026 to produce Zyn. It also plans to expand production in Kentucky and the Czech Republic. The company has created a marketing campaign called "Invested in America" to highlight its new factories and jobs — part of a strategy to position nicotine pouches as a legitimate, modern consumer product.

Even so, Philip Morris has had some stumbles. In July 2025, the company missed its earnings targets because Zyn sales disappointed investors, and the stock fell 7%. But by early 2026, the company had recovered and was projecting stronger profits for the year, based partly on growing Zyn volumes.

What We Know About Health Effects

Nicotine itself is addictive and harmful, according to the World Health Organization. Medical experts have found that nicotine harms adolescent brain development, affects the heart and blood vessels, and may damage oral tissue. Some studies of Swedish pouch users have found more mouth sores than expected. The American Lung Association notes that different brands contain different amounts of nicotine, making it hard for users to compare products or for regulators to set consistent standards.

One important caveat: the long-term health effects of nicotine pouches like Zyn are not yet fully understood, simply because these products have not been on the market for very long. As years pass, scientists will gather more data.

British American Tobacco has already felt regulatory pressure. It withdrew Velo from France on April 1, 2026, after French authorities moved against nicotine pouches. This shows that different countries are making different choices about whether to allow these products.

Why This Moment Matters

The letter from the nineteen state attorneys general is a direct challenge to Formula 1 and the FIA. But how they respond depends on whether they think the U.S. market is too important to risk.

Formula 1 has invested heavily in the United States over the past decade, adding races in Las Vegas, Miami, and Austin, and timing broadcasts for American television. That expansion has made the sport dependent on U.S. revenue. A formal letter from state officials is not the same as a reputational controversy F1 has managed before — it is a regulatory risk. If states start investigating or threatening fines, that becomes costly.

Meanwhile, Philip Morris and British American Tobacco are not backing down. Their factory investments, their expanded deals with Ferrari and McLaren, and their "Invested in America" messaging all suggest they intend to stay in this market for the long haul. Their strategy appears to be straightforward: build manufacturing capacity, make nicotine pouches visible through high-profile sponsorships, normalize the products in the public eye, and let market growth make regulators tolerate them. The state attorneys general's letter is the first major formal test of whether that strategy will work.