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.


Statement:


This article is compiled from third-party information and is for industry exchange and learning purposes only.


This article does not represent the views of 2FIRSTS, and 2FIRSTS is unable to confirm the truthfulness or accuracy of the article's content. The compilation of this article is solely for industry-related communication and research purposes.


Due to limitations in translation ability, the article may not express the original text accurately. Please refer to the original text for accurate information.


2FIRSTS aligns completely with the Chinese government on any domestic, Hong Kong, Macau, Taiwan, or foreign-related expressions or positions.


The copyright of compiled information belongs to the original media and author. If there is any infringement, please contact us for deletion.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Arizona Turns to a 50% Retail Vape Tax as Tobacco Tax Revenue Falls 47% From 2008
Arizona Turns to a 50% Retail Vape Tax as Tobacco Tax Revenue Falls 47% From 2008
Arizona's First Things First is pushing for an excise tax equal to 50% of the retail price of vaping products, estimating that the measure could generate about $100 million annually. The agency says its tobacco-tax revenue has fallen 47% from 2008 levels. Arizona has attempted to broaden its nicotine tax base in each of the past two years: a 2025 bill proposed a 50% wholesale-price tax, while a 2026 measure shifted to a 50% retail-price tax covering alternative nicotine products and vapor products. Separately, the state enacted HB 4001 this year to establish a new licensing and sales framework for alternative nicotine products.
Sep.21
German Customs Seize 115,800 Vapes in €1.4 Million Tax Case
German Customs Seize 115,800 Vapes in €1.4 Million Tax Case
Germany's Magdeburg Main Customs Office seized 115,800 untaxed e-cigarettes containing a combined 4.366 million mL of e-liquid during four truck inspections between August 10 and September 4, 2026. The seizures prevented an estimated €1.397 million in tax losses and set a record for the customs office's jurisdiction. Criminal proceedings have been initiated against four truck drivers. The case follows a separate German investigation involving more than 7.6 million illicit vapes and an estimated €33.3 million in excise-tax losses.
Enforcement
Oct.13
RLX Technology Dropped From FTSE All-World as International Business Reaches 68.5% of Q2 Revenue
RLX Technology Dropped From FTSE All-World as International Business Reaches 68.5% of Q2 Revenue
RLX Technology (NYSE: RLX) has been removed from the FTSE All-World Index, effective September 21. FTSE Russell records show RLX was already part of its global equity index universe by 2022, when its American depositary receipts were classified as China Large Cap securities. Trading volume rose to about 44.77 million shares on September 18, roughly 23 times the previous session's volume. RLX reported RMB1.0105 billion in second-quarter revenue, up 14.8% year over year, with international operations contributing 68.5%. The company also acquired a 51% stake in one of Western Europe's largest distributors of next-generation smoke-free and FMCG products in July.
Sep.22
Hawaii's Largest Independent Vape Retailer and Wholesaler Volcano to Close All 13 Stores Ahead of 2027 Sales Rules
Hawaii's Largest Independent Vape Retailer and Wholesaler Volcano to Close All 13 Stores Ahead of 2027 Sales Rules
Hawaii-based vaping company Volcano eCigs plans to close all 13 physical retail stores on December 31, 2026, affecting approximately 56 employees. Volcano operates retail, wholesale, proprietary product and online sales businesses and has previously described itself in legislative testimony as Hawaii's largest independent vape retailer and wholesaler. Its operating company, Jocor Enterprises LLC, filed a formal closure notice on November 4, citing changes in the state's regulatory environment. From January 1, 2027, Hawaii will restrict the sale, acquisition and possession of vaping devices and e-liquids not listed in a state product directory, alongside separate restrictions on certain disposable devices. The closure concerns Volcano's physical retail network; the company has not announced the termination of wholesale or online operations.
Market
Nov.09
U.S. Judge Stays Helix, NJOY Challenge to FDA PMTA Rule Pending New Rulemaking Court Stays Altria's Helix, NJOY Challenge to PMTA Rule as FDA Prepares New Rulemaking
U.S. Judge Stays Helix, NJOY Challenge to FDA PMTA Rule Pending New Rulemaking Court Stays Altria's Helix, NJOY Challenge to PMTA Rule as FDA Prepares New Rulemaking
A federal judge in Texas on Oct. 8 granted a joint request by the FDA and plaintiffs including Altria subsidiaries Helix Innovations and NJOY to stay litigation challenging the agency's 2021 PMTA rule. The court cited FDA's anticipated rulemaking concerning the regulation at issue. FDA announced on Sept. 28 that it intends to reassess the PMTA framework and could initiate new rulemaking to replace it. The parties must file a joint status report within 45 days and every 45 days thereafter. A motion by three Reynolds American companies to intervene remains pending.
Regulations
Oct.10
STIIIZY Redesign Fails to Escape PAX Labs Patent Import Ban as Section 337 Case Also Involves China ALD
STIIIZY Redesign Fails to Escape PAX Labs Patent Import Ban as Section 337 Case Also Involves China ALD
U.S. Customs and Border Protection ruled that STIIIZY had not shown that the redesigned cannabis-vape products covered by its latest request fall outside an ITC limited exclusion order tied to PAX Labs patents. CBP accepted some of STIIIZY’s claim-construction and non-infringement arguments, but the company did not address two additional claims in the same patent. Earlier STIIIZY redesigned cartridges and certain associated components imported with them had received separate CBP clearance.
Sep.16