Elastin is an important protein in tissues that need to be elastic to function well, such as alveoli. For example, the breakdown of elastin is a major mechanism for the breathing difficulties suffered by people with emphysema.

Which isn't to say that lozenges are likely to cause it - it's still primarily caused by inhaling irritants - just using it to illustrate how something that interferes with elastin production might affect your breathing, even if you aren't inhaling it.

In short: Your alveoli all have blood supplies.

It's the same mechanism that smoking damages your skin. Nicotine in your blood gets everywhere. It affects elastin production throughout your body.

Smoking is a multi-stage attack on alveoli. You're both physically damaging them with the smoke and inhibiting their ability to regenerate. But they're a high-use tissue. Even without the additional damage, you're harming their ability to regrow.