Vape market 'driven by illicit trade,' says report

The global volume of illicit electronic vape sales rose 7 per cent to around 605 billion sticks last year, accounting for a startling three-quarters (75 per cent) of the total market, according to Euromonitor.

The black market – which the market analysis company predicts will grow by another 10 per cent this year – is also being driven by the rise of single-use products, a category in which 89 per cent of the volume is illicit equivalent to around 235 billion sticks.

Various countries are implementing bans on single-use vapes, including the UK, France, India, Australia, Singapore, and Thailand, although the actions are being taken mainly for environmental and health considerations, rather than concern about illicit trade.

That said, there are major concerns about the use of illicit e-cigarette products, given that studies have found that some products contain higher-than-labelled levels of nicotine, toxic contaminants like lead, nickel and chromium, and carcinogenic carbonyl substances.

Euromonitor's World Market for Nicotine 2025 report estimates that the illicit e-vapour market is now valued at $47bn, with 71 per cent of illicit volumes sold in regulated markets. The total illicit market accounts for 13 per cent of the nicotine industry, with the volume impact of illicit e-vapes now comparable to the size of illicit cigarettes.

“The main driver behind the growth of the illicit market is a combination of overly restrictive legal frameworks that create a marked disparity between compliant and non-compliant products, insufficient enforcement and a value gap that leads consumers to opt for illicit goods that are more convenient and affordable," commented Erwin Henriquez, head of nicotine at Euromonitor.

The penetration of illicit e-vapour products is high across the board, according to the report, with North America, Latin America, the Middle East and Africa and Asia Pacific all exceeding 80%. Western Europe is particularly noteworthy due to its relatively low penetration rates and increasing legislative pressures.

"There remains limited awareness among consumers and retailers about illicit e-vapour products," said Euromonitor.

"Many are unable to distinguish between legal and illegal or non-compliant product offerings, particularly in terms of product safety, regulatory compliance and market legitimacy," it added. "Governments and industry stakeholders must work to increase awareness of the illicit trade, as has been done with illicit cigarettes."

E-commerce and social media have introduced new challenges for regulatory enforcement, enabling consumers to access non-compliant products easily, which may be shipped across borders. As social commerce emerges as a distribution channel for e-vapour products, effective regulation becomes increasingly crucial to prevent existing rules from becoming ineffective.

"Many consumers are drawn to the illicit market seeking affordability and control over their vaping experience," said Henriquez.

"It is essential to strike a balance in regulations to encourage the appropriate use of legal reduced-risk products."

Photo by Rubén Bagüés on Unsplash