According to Reuters, British American Tobacco (BAT) plans to launch a new version of its Velo nicotine pouch in the U.S. next year, featuring synthetic nicotine. Unlike nicotine extracted from tobacco leaves, synthetic nicotine is manufactured in labs, a process that has gained popularity among manufacturers as a way to bypass the U.S. Food and Drug Administration’s (FDA) lengthy and stringent tobacco product authorization procedures.

Initially, the FDA’s authority extended only to natural nicotine products, but in March 2022, President Biden signed a law broadening the agency’s regulatory scope to include synthetic nicotine. BAT’s upcoming launch marks the first time a major tobacco company will introduce a synthetic nicotine product in the U.S., a sector previously dominated by smaller e-cigarette and nicotine pouch manufacturers.

David Waterfield, President of BAT’s Reynolds America subsidiary, stated that the product’s former owner had submitted a premarket tobacco product application before the May 2022 deadline, allowing it to remain on the market while awaiting approval.

BAT anticipates that by 2030, the U.S. nicotine pouch market revenue will grow from the current £1.7 billion ($2.21 billion) to £7 billion.