The latest study from the Centre for Economic and Business Research (CEBR) confirms the financial growth of the e-cigarette industry.
According to a study conducted by the Centre for Economics and Business Research (CEBR) on behalf of the UK Vaping Industry Association (UKVIA), the e-cigarette industry has grown by 23.4% from 2017 to 2021, adding £251 million in revenue. In 2021 alone, the industry reached £1.325 billion (approximately ¥11.4 billion).
The report also found that when indirect economic benefits such as supply chain support and consumption by workers in the e-cigarette industry are taken into consideration, the economic impact will double to reach £2.8 billion (approximately ¥24.1 billion).
In 2021, the number of people directly and indirectly employed in the electronic cigarette industry (including those employed in other parts of the supply chain) was 17,700, while the electronic cigarette industry contributed £310 million to the UK economy through taxes in the same year.
The report also examined broader socio-economic benefits, such as its potential impact on public health costs. According to the Cebr report, the total savings in healthcare costs associated with smokers switching to electronic cigarette products in 2019 amounted to £322 million. The research institute continued to state that "if 50% of smokers switched to e-cigarettes, the potential healthcare cost savings" could be £698 million by 2020.
Owen Good, director of economic consulting at Cebr, stated that the results of the first economic impact report on the e-cigarette industry show that it has achieved great success as a rapidly growing disruptive industry.
Despite many high street retailers suffering losses in recent years, the electronic cigarette industry has been bucking the trend with significant growth both in physical stores and online. Even the pandemic has not significantly hindered the industry's growth.
The growth of this industry is highly beneficial to the UK economy, both for the companies and their employees directly involved, as well as for those operating within the wider supply chain. As more and more smokers switch to e-cigarettes to quit the habit, the NHS has also seen significant cost savings.
John Dunne, General Secretary of UKVIA, explained the scale of this category. "In just over a decade, the e-cigarette industry in the UK has grown from a very small cottage industry to being one of the fastest-growing industries, not only in retail but in the entire economy.
The use of e-cigarettes has increased dramatically and has been hailed as a true British success story, creating jobs, generating wealth, and providing valuable tax revenue for the government. Additionally, the shift from traditional cigarettes to e-cigarettes has saved the NHS over £300 million annually. This marks a significant transition in smoking habits, moving from traditional tobacco smoking to the use of e-cigarettes.
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