1. Impact of disposable vape ban
2. Taking on the illicit trade
3. The Tobacco & Vapes Bill is on its way
4. Are pouches the answer?
5. What should retailers be doing to make the most of the category?
6. Future-proofing the tobacco, vape and next category
1. Impact of disposable vape ban
The biggest news surrounding the category has been the introduction of the ban on single-use vapes. Introduced on 1 June, the regulation means that vape products have to be both rechargeable and refillable, or they are unable to be sold by retailers. The law was brought in to reduce the number of vapes being thrown away and to prevent young people accessing them. While the legislation has caused consternation amongst retailers, has it actually made a difference?
Juul Labs UK commercial director Richard Cook says the ban has changed consumer behaviour but not entirely in a positive way. “The single-use disposable ban was introduced to tackle sustainability issues and youth use. Although a welcome first step to curb litter and prevent underage sales, with most manufacturers of disposables having now introduced rechargeable and refillable versions of their previous single-use products, we are concerned that these new products, which are often identical to disposables in packaging, colour, flavour, and their low price, are still being treated as disposable by consumers.
“Saleswise, the convenience channel is currently overtrading in the vape category with volumes sold - on a millilitre of vape liquid basis - up 33 percent. However, in value terms, the category is down over a quarter (25 percent) over the past year as retailers heavily discounted single-use products to clear existing stock before June and ‘Big Puff’ devices have taken a much larger share of the market [Circana UK, Total E-Cigarettes, Symbols & Independents, 12 w/e 7th September 2025]. These devices offer a much lower price per millilitre compared to older disposables and other system types, and their increased puff count means less replenishment and therefore negatively impacts retail footfall. These two factors - lower cost per ml and reduced retail traffic - could be concerns for retail profitability in the convenience channel moving forward.”
ELFBAR associate general manager Angelo Yang believes that shoppers have embraced the move to refillable products. “It’s been five months since the single-use vapes ban, and the first major consumer poll of UK adult vapers and smokers in July showed that 85% of regular users are using reusables – a significant transition, particularly given the short timeframe.
“Equally encouraging is that these devices are being reused as intended. The Independent British Vape Trade Association reports that refill sales are outstripping sales of reusable devices, in many cases by a factor of three to nine. While our research following the ban found that 84% of UK adults who use ELFBAR or LOST MARY devices on a weekly basis are purchasing refills, only 8% are buying a new kit each time.”
Meanwhile, head of marketing at Scandinavian Tobacco Group UK, Prianka Jhingan, says that this is an opportunity for retailers to direct shoppers elsewhere in the category. “There’s no doubt that the recent ban on single use vape products has given retailers a headache by leaving gaps in their revenue as well as shelf space on the counter or on the gantry. It’s also meant that it’s not just tobacco smokers but also vapers who are now entering the nicotine pouch category in growing numbers, with sales increasing accordingly. To avoid missing out on lost sales they should be pointing their disposable vape customers in the direction of credible alternatives like nicotine pouches. Brands like our very own XQS are really hitting the spot for nicotine consumers as they are discreet, portable and come in a range of great flavours, and most importantly can help play an important part in filling that lost revenue in retailer’s tills.”
2. Taking on the illicit trade
One concern that sprung from the disposable vape ban was that it would fuel the illicit trade, with irresponsible retailers willing to break the law in order to make a quick sale.
Yang says that one in three vapes sold is illicit, a startling statistic. “Illicit trade continues to have a significant impact on legitimate category sales, eroding market share from responsible retailers. Previous CTSI data indicated that illicit vapes accounted for a third of vape sales, at a conservative estimate. In 2023–24, Trading Standards seized 1.19 million illegal vapes, a 59% year-on-year increase – underscoring the ongoing challenge the illicit market poses for retailers and the wider industry.
There were concerns the single-use vapes ban would unintentionally push more customers to seek out illegal products. Following the ban, an ELFBAR survey of 6,000 adult smokers and vapers found that one in four (26%) single-use vapers had turned to illegal vapes, started smoking more, or returned to tobacco. This diversion of demand towards the illicit market skews category sales and harms legitimate retailers.”
Yang outlines what work ELFBAR is doing to take on illicit products. “We actively work with a range of partners to tackle the illicit trade, including employing a specialist intelligence company in the UK and supporting campaigns to raise awareness and drive enforcement.
“As members of the Anti-Counterfeiting Group, a UK association focused on combating counterfeit goods, ELFBAR contributes to efforts to help tackle this pervasive issue. We also participate in campaigns focused on raising awareness of illegal vapes with strategic partnerships, including collaboration with FACT, a leader in intellectual property protection, to bolster our efforts.”
It’s not just illicit vapes causing issues, tobacco is also rife with illicit products. Nicky Small, Corporate Affairs and Communications Director, JTI UK, explains the impact of illegal products.
“Unfortunately, illegal tobacco is having serious ramifications on the incomes of honest retailers. It impacts on their legitimate tobacco sales and also means they miss out on wider basket spend with shoppers visiting other stores,” says Small. “Illegal tobacco costs the UK over £2 billion every year in lost tax revenue. That’s money which is lining the pockets of organised criminals that could be reinvested into communities, used to regenerate high streets, or to ease the pressure on already-stretched local resources.”
Small adds that this issue is a big focus for JTI. “Tackling illicit tobacco is one of our top priorities. This is why this year we launched a national campaign calling on the Government to do more to tackle the sale of illegal tobacco. The ‘It costs more than you think’ campaign provides retailers and consumers with the tools to report the illicit sale of tobacco and to raise awareness of the impact on local communities. The trade of illegal tobacco funds serious organised crime groups and takes footfall and revenue away from law-abiding stores.
“The campaign coincides with the publication of a landmark new study which found that over 90% of consumers are alarmed that the illegal tobacco trade is fuelling organised crime and over a third of respondents (38%) want stricter enforcement.
“Other findings from the study found that the majority (69%) of UK adults have heard of or are familiar with illegal tobacco but 2 in 3 (64%) are unsure how to identify it. There is a demand from the public for this trade to cease but 4 in 5 (81%) believe there is not enough enforcement to stop illegal tobacco sales. More needs to be done at a government level to tackle the illegal trade.”
JTI’s It costs more than you think website has a dedicated retailer page, which outlines the risks of selling illicit tobacco, alongside helpful tips on how to spot illegal tobacco products and report stores selling illicit goods. Retailers can also download a letter template to share with their local MP to raise awareness of illicit tobacco in their area.
“JTI continues to work tirelessly to raise awareness of illegal tobacco with the Government and call for more urgent action. We would ask all retailers to continue to report illegal sales in their area so that together we can shut down this dangerous trade.”
3. The Tobacco & Vapes Bill is on its way
It’s not just current legislation that retailers have to be mindful of, there’s more coming down the line in the Tobacco and Vapes Bill.
JTI’s Small says this is causing concern in the sector. “There is no doubt that retailers are worried about the generational ban as part of the Tobacco and Vapes Bill, fearing it will result in increased violent behaviour in their stores and will lead to more counterfeit tobacco in their communities. The proposed generational smoking ban is likely to exacerbate the issue of illicit tobacco and turn more people towards the black market as it will restrict adults’ purchasing choices for legal tobacco products.”
Small adds that the new legislation will only fuel the black market. “A recent survey of retailers by JTI also found that 87% of retailers agree that the proposed generational smoking ban would lead to more illegal tobacco activity in their local area. The survey found that 84% of retailers believe the implementation of a generational smoking ban would lead to loss of income through lost tobacco sales, whilst 66% believe it would result in a loss of income because of illicit tobacco sales.”
When it comes to the proposed generational smoking ban, a recent survey of retailers by JTI found that 71% of those surveyed agree that the Labour Party has not listened to the views of independent retailers on this topic. “Overall, 58% of retailers believe the generational smoking ban would have a negative impact on their store, up 15% from when the same question was asked in September 2024,” adds Small. “In fact, the survey also discovered that that 82% feel the Labour Government has broken its promise to support small businesses, because of rising business rates, an increase in National Insurance contributions, the proposed generational smoking ban and minimum wage increases.”
Juul Labs UK’s Cook urged some balance in the new legislation. “Ultimately, we support strong regulation and are committed to building a responsible vaping industry where all participants meet the same high standards, but a balance is needed. With rising misperceptions about harm, it is crucial that accurate information and high-quality products reach the UK’s six million adult smokers.”
4. Are pouches the answer?
Bringing some positivity to the doom and gloom is Jhingan who highlights the growth seen in pouches. “Our latest data shows total UK nicotine pouch sales to be worth just under £182m and growing by 65% YOY in volume terms. Although more sales currently take place in the grocery channel, they are actually growing fastest in the convenience channel. In fact, our latest data show pouch sales have very nearly doubled in the last twelve months in convenience stores, with our own XQS selling particularly well in this channel, where it is already the sixth biggest selling brand, with huge potential for further growth. And remember, nicotine pouches offer attractive profit margins in general, but I’m pleased to confirm that XQS in particular offers one of the highest margins of all pouch brands, which is yet another reason to ensure you are well-stocked.”
Not stopping at pouches, Jhingan is also looking at the cigarillos market as an opportunity.
“It’s certainly no longer a new trend but cigarillos are undoubtedly the current success story in the cigar category. The cigarillo segment may be the smallest in terms of the actual cigar size, but it is easily the largest of the four segments in terms of volume and not far off the other three combined in terms of value. Over the last couple of years distribution has improved and sales have really shot up for our Signature Action cigarillo brand. In fact, its sales have grown by almost 40% since last year, with adult smokers appreciating the great flavour and cheaper price point, compared to other brands in the market.
“It’s well-known cigar sales enjoy an upward trajectory over the Christmas period when many adult smokers like to enjoy one as part of their festive celebrations. Retailers certainly won’t need me to tell them that its typically larger cigars that people will gravitate towards as a bit of a Christmas treat when they are in celebratory mood and typically have more time to enjoy it.”
5. What should retailers be doing to make the most of the category?
With changes in legislation surrounding the category, what should retailers be doing to capitalise on it?
Elfar’s Yang warns that they need to scrutinise their range and ensure it’s fit for purpose. “Effective category management is critical. Retailers should offer a range of devices supported by refills in a wide variety of flavours, positioning refills near the devices so they are visible to customers – unseen is unsold.
“Pricing should be competitive, stock consistently available, and staff well-educated on devices and refills. Displays should be responsibly positioned, ideally behind the counter, so adults can browse the products without handling them.”
Yang adds that they need to be mindful of legislation surrounding recycling. “Retailers should also have a visible recycling point for used pods and depleted devices – helping them stay compliant while giving customers another reason to return, with the opportunity to drive further purchases across the store.”
6. Future-proofing the tobacco, vape and next category
While retailers can keep on top of their range and pricing, what do suppliers think will be the big trends in the category
Scandinavian Tobacco Group’s Jhingan believes that there’s no stopping pouches. “The nicotine pouch category will only keep growing in both size and significance, so retailers need to ensure they are stocking the right brands to maximise sales and profits.”
Meanwhile, Yang says high puff counts and added features will become more popular. “The brand is building on demand for high puff count devices with the LOST MARY NERA series – a high puff count, prefilled pod kit with curved display screen and visible e-liquid level indicator. The device has a rechargeable battery designed to last a full day on a single charge and the kit comes with two 2ml pod cartridges and two 10ml refill containers.
“In the open pod category, we’ve extended the ELFX series with the ELFX Ultra, featuring a built-in lock to prevent child access that reflects the brand’s commitment to responsible vaping. The device also allows users to monitor consumption habits and set limits as part of their smoking cessation journey.”
At Juul Labs, Richard Cook adds: “Juul Labs has recently announced the expansion of its flavour portfolio for the JUUL2 system in convenience stores, introducing new Mango, Apple, Watermelon and Lychee pod flavours in 2-pack pod formats with an RRP of £6.99. This expanded portfolio, designed to appeal directly to adult smokers, is a direct response to research indicating that 51% of adult smokers have a strong preference for fruit flavours to support their switching journey.
“With this new range, we hope to broaden our appeal to adult smokers and accelerate our core mission of helping adult smokers quit cigarettes.”
Cook advised retailers to be responsible with their ranges. “I urge retailers to focus on longer-term category growth in vaping. This means emphasising adult-oriented device formats with responsible branding and flavour profiles while shifting the focus to alternative adult-oriented formats such as pod-based systems and other smoking alternatives. That’s why I’d say, resist overstocking on bigger puff devices - many of which skirt the spirit of the 2 ml tank size limit, are considered attractive to underage users and are less profitable for retailers. The real unique strength of the convenience channel for JUUL is its immediate accessibility and how close it is to adult consumers. This channel is fantastic for capturing those impulse purchases and allows us to serve adult smokers who are actively seeking alternatives to cigarettes.”
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