Why Nicotine Pouches in Formula 1 Are Sparking a Legal Fight

On June 9, 2026, nineteen U.S. attorneys general wrote directly to Formula 1 and the sport's governing body, the FIA, with a formal complaint. Their concern: nicotine pouch brands Zyn and Velo appear on Ferrari and McLaren race cars — and those brands are owned by big tobacco companies Philip Morris International and British American Tobacco.

The letter raised a straightforward legal question. For decades, motorsport has banned traditional tobacco advertising. Nicotine pouches — small packets placed between the lip and gum that deliver nicotine without tobacco leaf — exist in a legal gray zone. The attorneys general argued that the spirit of those old rules should extend to these new products. The rules, after all, were written to keep tobacco marketing away from young audiences. A global TV sport watched by millions, many of them kids, seemed like exactly the kind of platform those rules were meant to block.

This wasn't an isolated complaint. In March 2026, health advocates had already called for a full ban on nicotine pouch sponsorships in F1, arguing that Philip Morris and BAT were using the sport's glamorous image to rebrand nicotine as something aspirational. By December 2025, Zyn's Ferrari deal had expanded to more races and more visible car branding. The pattern looked deliberate.

How Big the Market Really Is

Understanding why Philip Morris and BAT are willing to fight for this sponsorship requires knowing how fast nicotine pouches are growing. The global market was worth nearly $7 billion in 2025 — some analysts put it even higher, at $8.6 billion. But the real growth story is ahead: the market is projected to hit $56.7 billion by 2035. In the United States alone, the category is expected to grow from $3.95 billion in 2024 to $49.54 billion by 2033 — roughly 32.5% growth per year, according to market research from GlobeNewswire.

That's the scale of the prize. Philip Morris has been building the infrastructure to capture it. A $600 million manufacturing facility for Zyn opened in Aurora, Colorado in early 2026. The company is also expanding production at Swedish Match's plant in Owensboro, Kentucky — Swedish Match is owned by PMI. In Europe, PMI is investing more than 2 billion Czech crowns to modernize a factory in Kutná Hora, Czech Republic, with Zyn production planned for early 2026. All told, Philip Morris is creating roughly 500 new U.S. jobs and wrapping it in an "Invested in America" campaign launched in July 2025.

The financial markets have noticed. Philip Morris missed earnings expectations in July 2025 when Zyn sales disappointed, and the stock dropped 7%. But by February 2026, the company issued a bullish profit forecast for the full year, backed by Zyn volume growing 19% in the fourth quarter of 2025 — faster growth even as competitors gained shelf space.

The Health Case Against Nicotine

At the same time, the health picture is becoming clearer. The World Health Organization issued a stark warning on May 15, 2026: nicotine is highly addictive and harmful, regardless of whether it comes in smoke, liquid, or pouch form. The WHO warned that nicotine pouch brands were specifically targeting young people as sales surge.

Medical research backs this up. MD Anderson Cancer Center has documented that nicotine disrupts adolescent brain development, affects the heart and blood vessels, and can cause oral problems. Studies from Sweden — where nicotine pouches are more established — show higher rates of mouth sores among users. The American Lung Association notes that nicotine levels vary widely across different brands, making it hard for consumers to know what they're actually using, and harder still for regulators to set clear limits. The Truth Initiative adds that the long-term effects of products like Zyn simply aren't yet understood. That knowledge gap will likely fuel lawsuits and regulatory fights for years.

One warning sign has already arrived: BAT pulled Velo from France on April 1, 2026, after French authorities cracked down on nicotine pouches. That retreat shows the patchwork of regulations manufacturers now face — loose in some countries, tightening fast in others.

What Happens Next

The attorneys general's letter represents the American front of a larger regulatory squeeze. Whether Formula 1 and the FIA treat it as a formal mandate or a suggestion will depend on how much friction they're willing to accept over U.S. racing. Formula 1 has invested heavily in the American market in recent years, adding races in Las Vegas, Miami, and Austin. A sponsorship dispute that triggers state-level legal scrutiny is not the kind of reputational problem the sport has faced before.

For Philip Morris and BAT, the approach is clear. The factory investments, the Ferrari and McLaren deals, the "Invested in America" messaging — all of it points to a long-term strategy. They're betting that continued sales growth, combined with years of market presence in premium platforms like F1, will gradually normalize nicotine pouches as a legitimate consumer product. If regulators and state lawyers push back hard enough and often enough, that calculation could change. The attorneys general's letter is the first serious test of whether the companies' bet holds up.