Key Takeaways | BfTG Remarks at InterTabac
- Rising taxes: Germany’s e-liquid tax will climb to €0.32/ml in 2024, above the EU average.
- Flavor ban risks: In the Netherlands, bans shrank the legal market, boosted black sales, and increased youth access.
- Illicit & cross-border trade: Illicit products already make up 40% of the German market; many consumers cross into France to buy cheaper products, hitting border businesses.
- EU policy impacts: 2027 battery rules will end disposables; nicotine-based excise rates are seen as excessive; TPD revision unlikely before 2030.
- Industry stance: Vaping must remain cheaper than smoking; over-regulation and flavor bans will only push consumers back to cigarettes or illicit markets.
2Firsts On-Site, Dortmund — At the 2025 Dortmund NGP press conference, where 2Firsts was present for live coverage, Philip Drögemüller, Managing Director of the German Alliance for Tobacco-Free Enjoyment (Bündnis für Tabakfreien Genuss e.V.，BfTG), warned that excessive taxation and flavor restrictions could undermine the legal vaping market in Germany and across Europe, pushing consumers back to smoking or the illicit market.
Drögemüller noted that Germany has regulated e-cigarettes since 2016 and introduced an e-liquid tax in 2022. The current rate stands at €0.26 per milliliter and will rise to €0.32 in 2024 — significantly above the EU average of €0.20. “Regulation is important, but over-regulation risks destroying market potential,” he stressed.
Flavor bans under scrutiny
A key concern is the growing debate over flavor bans. Drögemüller cited the Netherlands, where a flavor ban took effect in January 2024. Within three months, the regulated market collapsed, while black-market products surged, easily accessible even to young people. “It’s a failed experiment. Germany must not repeat this mistake,” he said.
Illicit trade on the rise
According to BfTG’s survey, illicit products already account for roughly 40% of the German vaping market, with industry members estimating a 30% loss in potential turnover. Drögemüller urged policymakers to strengthen enforcement capacity to curb the expanding black market.
Policy shifts and looming impacts
Drögemüller outlined several EU-level regulatory moves that could reshape the industry:
- Battery Regulation: Effective 2027, requiring removable batteries, effectively phasing out disposables in the EU.
- Excise Directive proposal: A tax model based on nicotine concentration — €0.12/ml below 15mg/ml, and €0.36/ml above. “This punishes smokers who rely on higher nicotine strengths to quit,” he warned.
- TPD revision: A new Tobacco Products Directive may not be implemented before 2030.
Border effects also add pressure: France has not introduced e-liquid taxation, encouraging cross-border purchases and causing losses for German companies near the frontier.
Clear stance
“Vaping products must remain cheaper than cigarettes to preserve harm-reduction benefits,” Drögemüller concluded. “Flavor bans and excessive taxes are not solutions — they only drive consumers back to smoking or unsafe illicit markets.”
2Firsts was on-site to capture key discussions and will continue to provide in-depth coverage of regulatory developments shaping Europe’s NGP industry.
For more on-the-ground coverage, visit the 2Firsts InterTabac Special Section。
