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

China Tobacco Zhejiang files patent for pressure-triggered, on-demand oral nicotine release
China Tobacco Zhejiang files patent for pressure-triggered, on-demand oral nicotine release
China Tobacco Zhejiang Industrial Co., Ltd. has filed a patent application for an oral nicotine delivery product designed to let users actively adjust nicotine release. The product embeds two types of nicotine reservoirs with different wall thicknesses and positions inside a deformable matrix. Pressure applied with the tongue or lips can rupture the reservoirs and accelerate nicotine release. In simulated oral tests, several patent examples showed sharply higher peak nicotine release rates as applied force increased from 0 N to 1 N and 3 N. The filing explores a shift from preset release profiles toward user-triggered nicotine delivery.
Sep.01
U.S. Ninth Circuit Upholds FDA Denial of MH Global’s Flavored Vape PMTA Applications
U.S. Ninth Circuit Upholds FDA Denial of MH Global’s Flavored Vape PMTA Applications
The U.S. Court of Appeals for the Ninth Circuit upheld the FDA’s denial of MH Global LLC’s applications to market flavored electronic nicotine delivery systems (ENDS). The court ruled that FDA’s comparative-efficacy framework, which requires applicants to show that flavored products provide greater cessation or switching benefits than tobacco-flavored alternatives, is consistent with the Tobacco Control Act’s “appropriate for the protection of the public health” standard. The court also found that FDA was not required to establish the framework through notice-and-comment rulemaking.
Aug.26
Earnings Analysis | CTIHK H1 2026 Revenue Falls 26.9% as Core Businesses Diverge and New Growth Drivers Remain to Be Proven
Earnings Analysis | CTIHK H1 2026 Revenue Falls 26.9% as Core Businesses Diverge and New Growth Drivers Remain to Be Proven
China Tobacco International (HK) reported a 26.9% revenue decline in H1 2026, while gross profit fell only 9.5%, revealing sharp divergence across its businesses. Tobacco leaf imports contracted, while leaf exports and Brazil operations expanded strongly. Cigarette exports faced China duty-free market transition, and new tobacco products remained small. Meanwhile, CTIHK continues to strengthen its role as an investment and financing platform, though major external deals have yet to emerge. 2Firsts examines what these shifts mean for its next growth drivers.
Capital Markets
Aug.24
UK Directors Banned After 352,688 Vapes Imported From China Were Misdeclared as Medical Nebulizers in £15 Million Tax Case
UK Directors Banned After 352,688 Vapes Imported From China Were Misdeclared as Medical Nebulizers in £15 Million Tax Case
The UK Insolvency Service said YSK Enterprises imported large quantities of vapes from China in 2023, with a shipment addressed to the company declared as medical nebulizers before Border Force found 352,688 vaping products. HMRC calculated nearly £15 million ($20.3 million) in unpaid VAT and customs duty, alongside about £437,000 in corporation tax. Two directors were disqualified for nine years. The case predates the UK's Vaping Products Duty, which will introduce vape-specific excise and duty-stamp requirements from October 2026.
Regulations
Sep.11
U.S. Customs Plan to Require Foreign Export Declarations Could Deal ‘Devastating’ Blow to China’s Vape Exports, Logistics gl Expert Says
U.S. Customs Plan to Require Foreign Export Declarations Could Deal ‘Devastating’ Blow to China’s Vape Exports, Logistics gl Expert Says
A U.S. Customs and Border Protection proposal to collect foreign export declarations and other overseas customs documents could expose discrepancies in the value, classification and description of China-made vape shipments entering the United States. A veteran Chinese logistics professional told 2Firsts that the measure, if implemented, could undermine the all-inclusive shipping model used by some unauthorized vape exporters and push parts of the trade toward costlier underground channels. The risk extends beyond higher duties: accurately declared products may also be more readily identified as unauthorized e-cigarettes subject to FDA enforcement.
Special Report
Sep.07
Yinghe-Controlled Vape Maker SKE Ordered to Post £569,039 Security as It Pursues Crystal Bar Design Infringement Case in UK
Yinghe-Controlled Vape Maker SKE Ordered to Post £569,039 Security as It Pursues Crystal Bar Design Infringement Case in UK
The UK High Court has ordered Chinese vape manufacturer Shenzhen SKE Technology to provide £569,039 ($776,000) in security for costs in its design infringement proceedings against Vapepen London and other defendants over its Crystal Bar vape product. The court did not accept the defendants’ main argument that recovering costs from a China-based company would face significant enforcement obstacles, but found that SKE had not sufficiently disclosed its own financial position. The order is procedural and does not determine the underlying infringement claims.
News
Aug.21