During the Birmingham e-cigarette exhibition held on October 25-27, 2Firsts representatives had a discussion with Benedict, the UK market manager of the well-known e-cigarette brand INNOKIN, and his booth staff. They gained an in-depth understanding of the brand's performance in the UK market and the current situation of the e-cigarette market in the UK.
INNOKIN: Ban on disposables will drive growth in open devices and e-liquids
Benedict first introduced INNOKIN's performance in the UK market. According to the introduction, the INNOKIN brand entered the UK market in 2013-2014, and has become a well-known brand in the UK e-cigarette market due to its early market access advantage and brand precipitation.
Currently, INNOKIN's open products are among the top five in the UK market, with products available in almost every store. Although not all categories are sold throughout the UK, some of the top-selling products have a high shelving rate in stores, and the brand's repurchase rate has increased as a result.
In response to the UK government’s announced ban on disposable e-cigarettes set for June 2025, INNOKIN staff expressed cautious optimism. Although enforcement in the UK may not be as strict as in Germany and a black market is likely to exist, INNOKIN believes the ban will ultimately be beneficial. Benedict stated that the ban will drive the market towards a healthier and more sustainable direction, while also creating new opportunities for open-system brands.
At the exhibition, INNOKIN also introduced its own e-liquid product line. When asked about their outlook on the e-liquid market, they predicted that demand for e-liquids could significantly increase if disposable e-cigarettes are banned.
In addition, the high repurchase rate of e-liquids is a key focus in the market. Typically, when consumers purchase an e-cigarette device, they also purchase at least two to three bottles of e-liquid. The profit margin for e-liquids is significant; the cost of production can be less than a dollar, while the retail price can reach three dollars, making retailers more inclined to promote e-liquid products.
The UK is one of the most competitive markets, going it alone is tough
When discussing the challenges of the UK market, INNOKIN staff pointed out that the market's saturation and the strong position of leading brands make it difficult for new entrants. They described the current landscape as following the "80/20 rule," where a small number of brands dominate the majority of market share, posing significant challenges for companies with limited funding. They believe that as the market naturally adjusts, brands that can secure continuous financial support and stay the course will ultimately prevail.
The staff member also highlighted several unique characteristics of the UK e-cigarette market. Firstly, they noted the high acceptance of e-cigarettes among UK consumers, with a market penetration rate even higher than the United States. In terms of product design, products in the UK market tend to follow a more standardized design style while innovating within compliance regulations.
Regarding pricing, they observed the prevalence of low prices in the UK e-cigarette market, calling it one of the most fiercely competitive. Due to the market’s immense potential, many brands choose the UK as the launch site for new products, leading to intense competition and promotions such as "buy one, get one free" or "buy two, get one free" offers.
In terms of promotional strategy, the UK allows e-cigarette advertising, resulting in diverse promotion methods, including billboard ads and bus wraps. They mentioned that promotional activities are very common in the UK, especially during holidays and peak sales seasons.
On the channel strategy, they emphasized the importance of partnerships. The staff noted that it is challenging for a single company to succeed independently in the UK market. As a result, more suppliers are forming close partnerships with distributors and even app platforms, using multi-channel strategies to expand market reach. This trend of intensive, bundled cooperation is helping brands enter and capture market share more effectively.
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