A recent study in the UK has highlighted the financial growth of the country's electronic cigarette industry.
According to a study conducted by the Centre for Economics and Business Research (CEBR) on behalf of the UK Vaping Industry Association (UKVIA), the electronic cigarette industry grew by 23.4% from 2017 to 2021, adding £251 million in revenue, and reaching £1.325 billion in 2021 alone.
The report also found that when taking into consideration the indirect economic benefits such as supply chain support and the spending power of workers in the e-cigarette industry, the economic impact would double to over 2.8 billion pounds.
In 2021, the number of people in the UK directly and indirectly employed by the e-cigarette industry (including those employed in other areas of the supply chain) was 17,700, while the e-cigarette industry contributed £310 million to the UK's finances through taxation.
The report also examined the broader socio-economic benefits, such as the potential impact of the e-cigarette industry on healthcare. According to Cebr's report, the total healthcare cost savings associated with smokers switching to e-cigarette products in 2019 amounted to £322 million. The research group further stated that "if 50% of smokers switch to e-cigarettes, the potential healthcare cost savings" in 2020 could be £698 million.
Owen Good, the director of economic consulting firm Cebr, stated that the results of the first economic impact report on the vaping industry demonstrate its enormous success as a rapidly growing disruptive industry.
Despite many retail businesses on commercial streets suffering losses in recent years, the electronic cigarette industry has been on an upward trend with significant growth both in-store and online. Even the impact of the pandemic has not significantly hindered the industry's growth.
The growth of this industry is beneficial to the UK economy, companies and their employees engaged directly in the industry, as well as businesses and their employees operating in a wider supply chain. As more and more smokers switch to e-cigarettes to quit smoking, the NHS has also been able to significantly save on costs.
John Dunne, the Secretary-General of UKVIA, explained just how sizable this category is. "In just over a decade, e-cigarettes in the UK have grown from a 'cottage industry' into not only a retail sector, but one of the fastest-growing industries in the entire economy.
More people than ever are using electronic cigarettes, and it is seen as a true success story in the UK. It has created jobs and wealth, generated valuable income for the government through taxation, and by encouraging people to switch from traditional smoking to e-cigarettes, it has saved the NHS over £300 million per year.
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