The Rise of Illegal E-Cigarettes in the UK

Market by 2FIRSTS.ai
Feb.16.2024
The Rise of Illegal E-Cigarettes in the UK
Recent news from London's Oxford Street reveals the flourishing black market for disposable e-cigarettes, despite the UK's ban on sales.

1. This article is limited to industry research and communication among professionals in the field. 2. This article only represents the opinions and positions of the publishing media/author. 3. Readers should note that the items mentioned in the article may be subject to different regulatory policies in various countries and regions. Readers are strictly advised to comply with relevant laws and regulations in China. 4. This article is intended for adults over the age of 18 to read.

 

Walking down London's Oxford Street, besides American candy stores and high-end retailers, you're sure to come across someone trying to sell a pack of disposable e-cigarettes. These brightly colored, highly addictive plastic sticks are available almost everywhere - from local liquor stores to barber shops, nightclubs, and tanning salons, all the way to the end of the list - British streets have been inundated by these shiny, highly addictive items.

 

This is a serious issue that affects our health and environment. According to data from the environmental activist group Material Focus, around five million disposable e-cigarettes are discarded in the UK every week. Recently, UK Prime Minister Rishi Sunak announced a ban on the sale of all disposable e-cigarettes, citing the need to prevent children from accessing these addictive devices, even though it is already illegal to sell these products to individuals under the age of 18. However, this comprehensive ban has raised concerns that it may inadvertently fuel the thriving black market for these products.

 

According to a report by the British Broadcasting Corporation, a total of 484,366 illegal e-cigarettes were seized in the port of Kent in 2023, with an additional 19,349 confiscated from shops - and many more products remain undetected. Industry insiders have revealed to VICE that as many as 40 to 50% of e-cigarettes in the UK are currently illegal - meaning they are illegally imported and do not meet current British regulations. So how did we get into this predicament?

 

To understand the severity of this issue, we need to trace back to Shenzhen, China, an aptly named area known as "the e-cigarette valley." "The region has over 1,000 factories, where 90% of e-cigarettes worldwide are manufactured," said Marcus Lindblad, director of the nicotine company Haypp. With Beijing cracking down on the domestic market, many of these companies have now shifted their focus to overseas exports.

 

Simon from Yuoto, a distributor from the e-cigarette industry, told VICE that the UK is a significant market for e-cigarettes, both legal and illegal. It is a major market in Europe, accounting for approximately 30% of total exports. Simon estimates that about half of these products are obtained through illegal means.

 

Many of these e-cigarettes are sold to enter the UK through representatives stationed in the e-cigarette valley, contacting stores, distributors, and wholesalers directly - often through cold calls on WhatsApp. "I have received multiple calls - they are very persistent," said Yusuf, who works at an e-cigarette wholesale distributor in Halifax. "I don't think this ban will help much in solving the problem." There are also many WhatsApp groups specifically targeting wholesale sellers, filled with suppliers trying to sell e-cigarettes abroad, many of which exceed the legal limits for puff quantity and nicotine content.

 

For small batches of goods, illegal e-cigarettes usually do not face severe consequences. Paul from Yorkshire, who has been working in the e-cigarette industry for four years and wishes to remain anonymous, received some illegal products from China for personal use. He noted that these products were delivered like any other package, without encountering any issues or having to pay customs fees.

 

Many Chinese distributors in contact with Paul also offer services to deceive UK customs by falsely labeling their products on packaging. "I've had distributors contact me via WhatsApp offering to change the packaging of products, such as reducing the content from 50 milligrams to 20 milligrams, or decreasing the volume from 3.2 milliliters to 2 milliliters. It's like a get out of jail free card - if caught, you can claim ignorance," he told VICE.

 

Andrei Kutrov is the chief executive of the e-cigarette company Evapo. He noticed mislabeling causing products to be classified as zero-nicotine disposable products, bypassing UK tobacco product regulations. "This way, they can sell disposable e-cigarettes with larger tanks," he told VICE. "The government has known about this issue for years, but still hasn't closed this loophole for nicotine products.

 

Even if illegal e-cigarettes reach retailers, the consequences are not severe if they are found to be selling them. "Last year, a retailer was fined only 25 pounds - that's ridiculous," Lindblade added. "Even now, after the latest announcement by Rash Sunak, we are only talking about fines of 100 or 200 pounds.

 

For larger quantities of goods, more complex techniques may be used. Paul mentioned that he had heard that criminals were taking advantage of green channel shipping policies, which limit inspections to only imports and exports, making it easier to get packages through by bribing officials. Manchester seems to be a hub for illegal imports, with both Paul and Kurtloff taking note. "I know people in the city who import 10 containers of e-cigarettes at once, equating to tens of thousands of units," Paul added. Many of these units are sold to physical stores, which often do not carry out identity checks.

 

Paul also pointed out that individual retailers often purchase these packages and use social media apps like Snapchat to sell them to children. "I have witnessed individual 'dealers' using Snapchat to market e-cigarettes to students, and it is very effective. Within days, they will have many customers, and because the messages disappear, the consequences are minimal," he explained. Similar strategies are also being utilized on TikTok, with many accounts with a large following becoming popular by selling illegal e-cigarettes to the public.

 

So, will a complete ban solve this problem? It may not. "These addictive products are already very attractive to the black market," said Scott Butler, director of Material Focus. "We are shifting the disposable e-cigarette market from a legal market that does not comply with its legal responsibilities to an underground illegal market. I hope that channels within the black market will be more restricted, but we have already seen illegal e-cigarettes everywhere.

 

This is very similar to the recent ban on nitrous oxide (laughing gas) in the UK," said Katya Kovalskaya of the policy think tank Volteface. "It is largely related to populism - doing things that the audience likes to hear, but without truly considering the consequences. Yes, we all want children not to use disposable e-cigarettes. But what this policy fails to highlight is that it is already illegal for children to use e-cigarettes. So, you are prohibiting something that is already illegal, rather than trying to prevent it from happening in the first place.

 

This is the way the British government treats every drug or substance," she continued. "They just choose a blanket, unprofessional and detail-lacking approach. They don't investigate what is effective, what will reduce the widespread consumption of e-cigarettes." Kovalsky argues that the government should take a bottom-up approach, including better educating people about the risks of smoking and its impact on the environment.

 

Another solution is to implement strict licensing laws for the sale of e-cigarettes. "This is what the industry is calling for - if retailers are found to be breaking the law, fines can go up to £10,000," said Kutrov. "We have around 55,000 retailers in the UK, including convenience stores and e-cigarette shops. These businesses could provide financial support by obtaining a license to sell e-cigarettes, with the proceeds used to support the trading standards department in tackling this issue. Currently, trading standards are stretched to their limits, they do not have enough funds to enforce this policy - leading to the flourishing black market.

 

In typical Tory party fashion, this short-sighted blanket ban may not solve the issue at hand. The e-cigarette industry is constantly evolving, with many disposable e-cigarette manufacturers investing in updated "non-disposable" models, such as rechargeable pods. However, the implications of how these updated models will address the environmental impact of plastic waste generated by disposable e-cigarettes remains to be seen.

 

Although this yet-to-be-detailed new ban may affect the legal market, it also poses a risk of strengthening the competitive black market. "This policy is overly simplistic," Kowalski concluded. "Trying to eradicate disposable e-cigarettes in this way will only create potential customers for existing illegal black markets. This is the case with nitrous oxide, and it will happen here too. We need to focus on harm reduction, not just blanket bans for the sake of populism.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

PMI Expands U.S. ZYN Portfolio With New 1.5 mg and 8 mg Strengths, Moves Toward a Unified 20-Pouch-Per-Can Format
PMI Expands U.S. ZYN Portfolio With New 1.5 mg and 8 mg Strengths, Moves Toward a Unified 20-Pouch-Per-Can Format
Philip Morris International is expanding its U.S. ZYN nicotine pouch portfolio with new 1.5 mg and 8 mg strengths and plans to move its core 3 mg and 6 mg dry-pouch products from 15 to 20 pouches per can in the fourth quarter of 2026. ZYN ULTRA is also commercially available, with FDA authorization covering 10 products at 9 mg and one 11 mg Smooth product. PMI U.S. lists the new 1.5 mg and 8 mg strengths as commercially available, but as of September 10 they do not appear on the FDA’s public authorization list. Public materials do not identify which PMTA submissions cover the two new strengths or their current review status.
Sep.11
Swedish Match Faces Broader Labeling Order After ZYN Inspection, Documents Obtained by 2Firsts Show
Swedish Match Faces Broader Labeling Order After ZYN Inspection, Documents Obtained by 2Firsts Show
Documents obtained by 2Firsts show that Sweden's Public Health Agency ordered Swedish Match to revise ingredient labels beyond the five ZYN products inspected. The dispute centers on whether flavoring ingredients must be individually disclosed, with Swedish Match citing trade-secret protection and the regulator insisting on full ingredient disclosure. The company faces a conditional penalty of SEK 2 million per month for noncompliance. As of October 22, the agency had received no appeal, despite the company's stated intention to challenge the decision.
Oct.22
As JUUL2 Wins FDA Authorization, Harm Reduction Journal Highlights the Role of Real-World Evidence in Nicotine Product Regulation
As JUUL2 Wins FDA Authorization, Harm Reduction Journal Highlights the Role of Real-World Evidence in Nicotine Product Regulation
A commentary published in the international open-access, peer-reviewed Harm Reduction Journal argues that randomized controlled trials remain central to evaluating smoking cessation efficacy but cannot alone capture real-world uptake, complete switching, longer-term use and population impact of non-combustible nicotine products such as e-cigarettes, heated tobacco and nicotine pouches. The authors frame impact as “reach × efficacy” and call for real-world evidence to complement RCTs. Three days after publication, the FDA authorized three JUUL2 products and highlighted complete switching among adult smokers in explaining its decision, providing a timely regulatory backdrop to the debate.
Sep.08
FRE and ALP Push Modern Oral to 48% of Q2 Sales as Turning Point Brands Changes CEO and Lowers Profit-Guidance Ceiling
FRE and ALP Push Modern Oral to 48% of Q2 Sales as Turning Point Brands Changes CEO and Lowers Profit-Guidance Ceiling
Turning Point Brands said Executive Chairman David E. Glazek will become CEO on October 1, replacing Graham Purdy, who is stepping down for personal reasons. The company narrowed its 2026 adjusted EBITDA outlook to $70 million-$80 million from $70 million-$90 million while maintaining Modern Oral gross sales guidance of $330 million-$350 million and net sales guidance of $260 million-$270 million. In the second quarter, Modern Oral net sales rose 128% to $68.4 million and accounted for 48% of company-wide net sales. Adjusted EBITDA fell 50% year over year. TPB shares closed about 10% lower on September 21.
Market
Sep.22 by 2Firsts Perspectives
As Regulators Focus on Nicotine Pouch Child Safety, Safeguard Pursues an External Packaging Route
As Regulators Focus on Nicotine Pouch Child Safety, Safeguard Pursues an External Packaging Route
As regulators pay closer attention to child safety in nicotine pouches, manufacturers face a practical challenge: how to strengthen child-resistant packaging without unnecessarily reworking products, production lines and regulatory submissions already in place. In a written interview with 2Firsts, Chemular detailed Safeguard’s external packaging approach, its customer-specific testing requirements and possible PMTA pathways. The model remains early-stage, but it offers a new way to think about an increasingly important regulatory and manufacturing issue.
Industry Insight
Sep.19
Australian Coalition Unveils Illicit Tobacco Plan With 80% Excise Cut and Legal, Taxed Vapes and Nicotine Pouches
Australian Coalition Unveils Illicit Tobacco Plan With 80% Excise Cut and Legal, Taxed Vapes and Nicotine Pouches
Australia’s Coalition has unveiled a national illicit-tobacco policy that would cut tobacco excise by 80% and create legal, regulated and taxed adult markets for vaping products and nicotine pouches if it wins government. The plan proposes an excise of A$0.50 per millilitre of e-liquid and A$0.025 per milligram of nicotine in pouches, alongside A$200 million in additional enforcement and a A$60 million three-year public-awareness campaign. The Coalition says the package would narrow the price advantage of illicit products and undermine organised crime, while Labor and public-health groups warn that dramatically cheaper cigarettes could reverse long-term declines in smoking.
Sep.03