A smokeless tobacco product includes a powdered or granular smokeless tobacco formulation that is contained within a moisture-permeable packet or pouch. The smokeless tobacco formulation may include finely ground particles of tobacco in powder-like form and other ingredients such as sweeteners, binders, colorants, pH adjusters, fillers, flavoring ingredients, disintegration aids, antioxidants and preservatives. The tobacco formulation may have a dry or moist form. The container has the form of a pouch or bag, such as is the type commonly used for the manufacture of snus products. The container preferably contains at least one capsule, such as a spherical breakable capsule. The container is intended to be placed in the mouth of the tobacco user, such that the tobacco formulation within the container may be enjoyed by the user. After the tobacco user is finished using the smokeless tobacco product, the container is removed from the user's mouth for disposal. Alternatively, the container is dissolvable or dispersible in the mouth of the user.