The Growing E-Cigarette Market in the UK

Nov.24.2022
The Growing E-Cigarette Market in the UK
The UK e-cigarette market is worth £1.2 billion, set to rise to £1.47 billion within three years. Retailers should stock suitable products.

In the UK alone, the electronic cigarette market is now worth approximately £1.2 billion, with an expected increase to £1.47 billion within the next three years. Currently, around 35% of electronic cigarette sales are attributed to convenience channels (according to ECig Intelligence).


The number of electronic cigarette users in the UK has increased by 3% from last year, reaching 3.6 million, indicating a continued growth in consumer demand for electronic cigarette products, according to ECig Intelligence.


To capitalize on this upward trend, retailers need to ensure they have enough space in-store for electronic cigarette products and stock appropriate product lines for their customer base," commented Tom Gully, Director of Consumer Marketing for Imperial Tobacco UK and Ireland.


Recent data shows that closed pod systems and basic open systems remain popular choices among e-cigarette users, comprising 70% of the total UK e-cigarette market by 2022 (35% closed pod systems/35% open systems, according to ECig Intelligence).


However, despite these devices taking up a majority of the market share, we are also seeing significant growth in the disposable category, currently valued at approximately £132 million and holding a 10% market share - higher than the 5% seen in 2021 (ECig Intelligence).


Gully added, "Retailers should ensure that they regularly review their product lines and prioritize stocking brands that cater to these fast-changing trends in order to stay current and maximize sales. In light of this, we recommend stocking a range of leading closed pod systems, such as myblu and compatible liquidpods, to capitalize on the growing demand for pod mod devices.


Recent data shows that the value of pre-filled pod categories has grown to around £558 million, while the value of e-liquid categories has reached £355 million (according to ECig Intelligence). This presents a huge sales opportunity for retailers.


In order to effectively capitalize on this opportunity, retailers need to ensure that they sell a variety of pre-filled pods and e-liquids in different flavors and nicotine strengths, including nicotine salt options like myblu Intense, to ensure that their offerings can attract and satisfy the needs of different customers, said Gully. "Peppermint is the most popular myblu flavor, followed by earthy and fruity categories, so we strongly recommend stocking up on a series that caters to these specific flavor categories.


The myblu pod-mod is one of the leading electronic cigarette products from Imperial Tobacco. It combines the performance that experienced e-cigarette users need with ease of use appreciated by new entrants to the category. The device's user-friendly Liquidpods allow vapers to switch flavors in a matter of seconds with a simple "click and go" system.


The category of electronic cigarettes is constantly evolving. As a result, retailers need to ensure they keep up with the current trends of the next generation of nicotine products, so they can modify their product range and offer any products that are popular among customers," suggests Gully. "Making space for a small number of new vaping products will also allow retailers to try them out before investing in them as a permanent part of their product line.


Retailers should also regularly review their main product lines to ensure they are meeting customers' needs," continued Gully. "For example, are there any specific vape flavors or devices that customers frequently buy that are worth investing more inventory in or making them more visible in the store? Having this type of insight, combined with customer feedback, will enable retailers to regularly modify the available range to ensure it remains fit for purpose.


Not every customer who walks into a store is an experienced e-cigarette user, so it's important for retailers and their staff to provide a wide range of information and tailored advice for each customer. This will help them make informed purchasing decisions.


Retailers are a crucial channel for Imperial to enter the market, representing a significant portion of its sales. As such, the company continuously invests in supporting retailers to enable them to fully leverage Imperial's products through sales and trend recommendations, promotions, store visits, and in-store furniture.


In addition to providing support to retailers through its sales representative team, the Ignite application is another important resource that enables retailers to stay up-to-date with the latest news, information, and training opportunities to help them operate more efficiently. It includes a wide range of tools and advice, such as incentive articles, downloadable POS, product information, and crucial tips on how to increase store sales.


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