The Current State of the UK e-Cigarette Market

The current state of the UK e-cigarette market.

As a country with highly favorable policies towards e-cigarettes, the e-cigarette market in the UK is set to expand further in 2022. According to data from Action on Smoking and Health (ASH), the number of e-cigarette users in the UK has reached an all-time high of 4.3 million. However, the sale of non-compliant e-cigarette products has caught the attention of authorities, potentially leading to increased scrutiny on related businesses.

During a video conference held by the China Electronics Chamber of Commerce Electronic Cigarette Professional Committee and the UK Vaping Industry Association (UKVIA) on August 19th, John Dunne, the Secretary General of UKVIA, explained the current status of the electronic cigarette market and regulation in the UK. He stated that the black and grey markets for electronic cigarettes are rampant in the UK, and due to the government being in a transitional phase, regulation of the black market is currently low. The stance of the new minister towards electronic cigarettes is unclear, and it is expected that a clearer approach will be established when the new cabinet is formed in mid-September.

The information comes from John Dunne, the General Secretary of UKVIA.

Single-use e-cigarettes have a significant market share in the UK, with over 6,500 registered products under the supervision of the Medicines and Healthcare products Regulatory Agency (MHRA). However, the presence of illegal oversized smoking products has presented a major challenge for regulators. In response, the MHRA has taken a stricter stance against companies that submit falsified materials or fail to meet requirements, leading to longer wait times for approval or even rejection. Companies suspected of fraud may have their products' Electronic Cigarette Identification Number (ECID) revoked or be prohibited from registering their products altogether.

While facing immense regulatory pressure, there have also been instances of opportunistic behavior and scamming. Recently, certain independent testing laboratories in the UK have been procuring electronic cigarettes from black markets in order to conduct tests. If any violations are found, they use this as leverage against companies or report to the UK Department of Health, all for the purpose of illegal profit.

John Dunne has stated that according to a survey conducted by UKVIA, many disposable e-cigarettes on the current UK market do not comply with regulations. Common issues found include pod sizes exceeding 2mL, nicotine concentrations exceeding the maximum of 20mg/mL, packaging classification problems with CLP, or products not registered with MHRA. UKVIA is taking action by working with MHRA and trade standards and enforcement departments to identify illegal sellers, and is continuing to collaborate with Chinese partners to shut down counterfeit factories.

Britain cracks down on black market e-cigarettes.

Trade standard departments throughout the UK are taking action, conducting surprise inspections of stores and wholesalers, confiscating illegal products, and imposing fines on businesses. Illegal shop owners have received a fixed penalty notice of £200, and three stores have been banned from selling electronic cigarettes.

Scotland actively organized an operation to crack down on illegal single-use e-cigarettes. 21 local authorities carried out raids on 721 locations in 10 weeks, removing over 88,000 non-compliant single-use e-cigarettes.

David MacKenzie, Trade Standards Manager of the Scottish Highlands E-Cigarette Committee, has reported that over the past 12 months, they have seized more than 3,000 illegal e-cigarettes in their stores. Some of these e-cigarettes contained nicotine levels far above the legal limit (under UK law, e-cigarette pods must meet a maximum capacity standard of 2ml). Some of the vendors selling disposable e-cigarettes were not properly registered, while some e-cigarettes lacked essential labels, instructions, and warnings.

Our concern has always been that retailers may purchase disposable e-cigarettes designed for the US market from non-UK sellers on the internet. The nicotine levels in these e-cigarettes may be up to 12 times higher than the legal levels here.

The latest trend in electronic cigarette products is disposable e-cigarettes. These e-cigarettes are often marketed with a variety of flavors and bright colors, making them particularly attractive to young people and children. Additionally, they are inexpensive, making them affordable for children. For example, last October, a shop in Aberdeen was caught selling illegal e-cigarettes for only £5 each by the committee.

On September 9th, the UK Vaping Industry Association (UKVIA) held a forum and exhibition on the electronic cigarette industry at the QEII Center in Westminster, London. The theme of the event was "Combating Illegal E-Cigarette Traders, Preventing Minors from Accessing E-Cigarettes, and Creating a Sustainable E-Cigarette Industry.

The UKVIA states that the real root of the rampant black market lies in the unethical traders selling disposable products illegally. They call for a series of severe measures against these illegal traders, including fines of £10,000, revocation of retail licenses, and more. They are also working with relevant authorities to identify, prosecute, and confiscate potentially hazardous non-compliant e-cigarette products.

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