A Look into the Growing Vaping Industry

The vaping business transformed from an intriguing technology in 2010 to a global sensation by 2017. From humble beginnings, vaping is today recognised as a potentially significant technique for assisting adult smokers to make the switch.

Smoking cessation is a major reason people opt to use a vaping device, and many people are seeking a nicotine alternative to cigarettes. Public Health England has declared that vaping is 95% less dangerous than smoking, making it a suitable option.

Consumers have switched to vaping in droves throughout the years. Depending on the insight, 7-8% (or around 3.2 million people) of the UK population currently vape.

While the industry’s expansion has been rapid and profitable, it has not been without obstacles. Like with any new technology, the general population has numerous worries regarding health and safety, as well as the usefulness of vaping as a method of switching.

Some of these concerns are being addressed; the evidence is increasing in favour of vaping as a way of reducing the damage caused by smoking cigarettes, as indicated by the most recent government reviews on the matter. There are, however, numerous unsolved problems that just cannot be addressed adequately until long-term data is available.

Despite this, the retail power of vaping goods is growing and should be monitored. Possible legislative changes in response to the proliferation of disposable vapes among young people, as well as altered consumer behaviour in the aftermath of the cost of living crisis, have the potential to reshape the picture once again in 2023/2024.

Looking ahead to 2022

The year 2022 was a watershed moment for vaping. Disposable vapes have been available in UK shops since 2021. Its lightning-fast climb to market supremacy caused some interesting ripple effects throughout the industry, both positive and negative.

As a result, traditional vaping product sales decreased while pre-filled disposable unit sales increased – a trend that was reversed in December 2022. This trend only intensified when many customers found themselves financially on the back foot as a result of the cost-of-living crisis, which was exacerbated by a perfect storm of Brexit blunders, political infighting, the COVID-19 epidemic, and the war in Ukraine.

The growth and collapse of disposable e-cigarettes

Disposable vapes arrived in the UK, providing customers with the most convenient way to vape that we have ever seen. The devices were colourful and appealing to the eye, harsh on cravings yet easy on the throat thanks to powerful yet smooth nicotine salt e-liquid, and an incredible choice of flavours ranging from standard offerings to sweet and fruity combinations.

Because they are single-use and pre-filled, there is no coil to fiddle with and no potentially messy refilling procedure; users simply puff and discard. This resonated strongly with customers, allowing disposable vapes to gain a 90% market share in terms of unit sales by November 2022.

Initially, sales of bottled e-liquids and rechargeable devices such as those supplied by EDGE Vaping remained flat. According to data, this significant increase in vaping retail was limited to disposable vapes; these customers had never used other vaping goods previously, implying that the unit sales might be attributable to non-smokers or vapers. This is a moral concern in and of itself (if you have never smoked or vaped, you should not start), but it also signals a troubling surge in the number of young people taking up the habit.

The convenience sector drove disposable vape sales, with smaller businesses responding to demand by launching as many throwaway devices as they could as rapidly as possible. This caused issues since importers began flooding the market with illegal, untested variations that did not fulfil the regulatory safety criteria that all UK vaping products must meet.

While the incredible demand for disposable vapes created a hugely profitable opportunity for retailers, their ascent was halted in December 2022. While there is still some space for expansion in terms of distribution, most retail outlets now carry at least one type of disposable vaping device, which means they will struggle to achieve further reach. There has also been a shift in customer perception to consider, which is contributing to their recent decrease.

Confidence in these devices has been shaken for a variety of reasons, including:

• Illegal importation and selling of unregulated disposable vapes that fail to meet UK safety regulations. These devices routinely violate the regulatory safe limits for nicotine concentration and e-liquid volume (as seen in recent headlines).
• Trading Standards has conducted massive stock seizures and investigations across the UK in an effort to safeguard customers and educate shop owners on compliance.
• The gadgets are entirely constructed of non-recyclable components, such as lithium. They are often littered, and those that are properly disposed of are transported to a landfill. This implies that enough lithium is wasted each year to create 1,200 electric automobiles.
• A big youth access problem is still developing. Social media platforms such as TikTok and its counterparts are encouraging underage youngsters to obtain trendy vaping equipment. According to reports, one in every five 15-year-olds currently uses disposable vapes.
• Youngsters can acquire gadgets from a variety of sources. Large supermarkets, in addition to smaller businesses and marketplaces, have been highlighted as a source of underage sales.

These controversies have begun to have a greater influence on customer behaviour, paving the way for a stronger year for traditional vaping goods in 2023.

• This includes issues such as grocery inflation due to resource constraints in Ukraine as the war with Russia escalates
• Rising gasoline prices
• National shortages of imported commodities due to a weaker post-Brexit infrastructure

As a result, people browsed significantly more and 33% of buyers could only afford the essentials, meaning many were forced to abandon vaping entirely. Discounters selling low-cost disposable vapes did the best in the second half of 2022, although even these saw consumers’ average expenditure fall.

About 54% of those polled on the Vyper consumer app said they bought less e-liquid in November and December in order to prioritise other expenses.

What can we expect in 2023?

This year, we’re witnessing some encouraging signs of development in the vaping business. While disposable vapes appear to be seeing their first decline in 18 months, bottled e-liquids and classic vaping devices and pods are on the up, indicating that consumer spending may be stabilising following the biggest Christmas slump in at least three years.

Discount retailers are proving to have a significant impact in the vaping sector, with remarkable fluctuations in sales as customers fly between them in search of the cheapest method to vape. This is not changing anytime soon; with the energy price ceiling being lifted in the coming weeks, customers are still seeking ways to save.

Customers’ gazes are drifting

The disposable vaping scandals that have accumulated since 2021 are now taking root and impacting customer behaviour; as we can observe, more consumers are now likely to switch to a reusable pod system if it provides comparative ease.

New brands, including non-disposable items from formerly disposable-only names, have increased the rise of pod systems. They have generated a sense of familiarity, making it easier for customers to abandon the hyper-convenience of disposables in favour of something more durable and, eventually, more cost-effective.

Yet, brand loyalty is at an all-time low, with price point and product type playing the most important roles in driving sales. While all vaping categories are growing this year, e-liquid pods stand out because they offer a mix of affordability and convenience that seems to appeal to the majority of customers. Retailers should remember that disposables are falling while pods are rising, so selling them (along with a large assortment of 10ml nic salt fruit flavours) is a sure bet for profit in 2023.