The health harms of smoking combustible cigarettes are well known and yet, sadly, smoking still kills 220 people in the UK every single day.
There is no doubt that for many smokers who want to quit, reduced risk products play a very important part in helping them do so and vaping has proved to be the most successful of those reduced risk products.
Smokers want nicotine but they are increasingly not prepared to accept the enormous health harms associated with inhaling tobacco smoke.
Government statistics show that smoking is at its lowest level since records began while vaping is at an all-time high. Literally millions of former smokers have quit cigarettes because of vaping and the fact that vaping can give smokers the nicotine they want without the harmful cancer-causing chemicals is driving this trend.
The availability of single use devices has proved particularly important by providing an intuitive alternative to cigarettes with no learning curve for smokers making the switch to vaping.
“We know that the government plans to ban single-use devices in the UK from April 2025 and already companies are bringing out new ranges of reusable vapes which offer more functionality than single use devices, cost less and are just as easy to use,” comments John Dunne, Director General, UK Vaping Industry Association (UKVIA).
“Vapers are also very passionate advocates, and their word-of-mouth recommendations go a long way to convincing friends and family who smoke to use reduced risk products to quit cigarettes too.”
The UKVIA has just held another successful VApril awareness campaign which gives smokers the facts about the relative risks of smoking and countering misinformation also serves to drive growth in the sector.
Since the government announced its intention to ban disposables there has been much uncertainty in the industry and removing access to the very products which have proved the most popular in helping adult smokers switch will drive vaping numbers down.
“We have warned the government that prohibition does not work, and this ban will both fuel a black market in illicit products and encourage former smokers to return to cigarettes,” adds Dunne.
“Neither of these things are good for the economy, the health of the nation, the environment or the protection of young people from what is an age-gated activity. We are already seeing vape manufacturers moving from disposable devices to rechargeable systems which are just as easy to use as disposables, but with much more functionality.”
Many vapers are switching to the new generation of multi-use products which have four tanks in one device and are legal as long as each tank contains no more than 2ml of e-liquid.
“The inevitable rise in black market products is very worrying because they are not subject to the same safety testing as regulated products and therefore represent an unknown risk factor for those who use them,” says Dunne.
The UKVIA is also very worried about the government’s Tobacco and Vapes Bill which is currently making its way through parliament, and which seeks to give ministers unprecedented new powers to restrict or ban flavours, impose new rules for point of sale displays and regulate packaging of vape products.
“In jurisdictions where vape flavours have been banned, vapers often return to smoking or switch to more risky illegal products instead and yet the government has not carried out a risk assessment into the potential health harms of driving vapers back to cigarettes,” comments Dunne.
“The UKVIA wants to see a thriving reduced-risk products sector to allow smokers full access to the very products designed to help them quit cigarettes and robust enforcement of existing laws which make sales to under 18s illegal. We also want a vape retail licensing scheme to fund a national enforcement strategy, backed by £10,000 fines for those who sell to children or who sell illegal products.”
The UKVIA is working harder than ever to represent the vape sector and point out to government the danger of over-regulation and the unintended consequences it can bring, especially in fuelling a black market in illegal products and driving adult smokers back to deadly cigarettes.
“Many smaller retailers rely on sales of reduced risk products to keep them trading and we would encourage retailers to write to their MPs to explain that ill-considered legislation could force legitimate businesses to close while allowing an illegal underground market to grow and thrive,” continues Dunne.
The Tobacco and Vapes Bill, which passed in the House of Commons in April, will provide powers to restrict the flavours, point of display and packaging of vaping and other nicotine products.
A statement by the All-Party Parliamentary Group (APPG) for Responsible Vaping said it is vital the Government takes a comprehensive evidence-based approach to vaping regulation. This is of particular importance as the Government is already moving forward with regulations to ban single-use vapes. To be proposing further regulation prior to this significant action is of concern and risks potential unintended consequences, the statement continued.
The Responsible Vaping APPG intends on working collaboratively with the Government to ensure that vaping policy, law and regulation is developed in a way which ultimately achieves the shared objective to reducing youth vaping, whilst not weakening the benefits of vaping in supporting adult smoking cessation.
There are evidence-based (Gibson) concerns, particularly around the potential restriction of flavours that could undermine vaping as an effective cessation tool and inadvertently lead to an increase in smoking.
The Regulatory Policy Committee (RPC) highlights that the Government’s Impact Assessment should consider that restricting vape flavours may make vaping less enjoyable for many people, which could in turn increase cigarette cravings and make specific groups of people more vulnerable to relapse to smoking.
Further to this, the RPC note that the rationale for intervention for the range of vaping policies is weak and needs to be strengthened, particularly in light of the mixed-to-negative feedback in the “Smokefree Generation and Tackling Youth Vaping” consultation.
The APPG for Responsible Vaping expect the Department for Health and Social Care to produce further assessments of the impacts of the vaping policies, and a comprehensive statutory consultation period, ahead of the introduction of any related secondary legislation.
Chair of the Responsible Vaping APPG, Gareth Johnson MP said: “The APPG for Responsible Vaping has serious concerns about the vaping portions of the Bill, questions about the evidence it is based upon and also the unintended consequences that it may inadvertently drive more people towards smoking.
“The potential adoption of stricter options on flavours, risks undermining public health goals, endangering progress towards a smoke-free future. We look forward to working with Government to ensure that vaping policies, specifically around flavours, packaging, point of sale, do not risk the positive role that vaping has and must continue to play for adult smokers.”
As more consumers seek out alternative nicotine solutions, the vaping sector is expected to grow from 36% in 2019 to over 45% by the end of 2024 for adult nicotine users (ECigIntelligence).
In the UK alone, the category value is forecast to almost triple from £930 million in 2019 to be worth almost £3 billion in 2025 (ITUK estimates).
“With around 35% of current vape volume sales already taking place in the traditional retail channel (ECigIntelligence), it’s clear that there will be continued demand from consumers for vaping products throughout 2024,” comments Yawer Rasool, Consumer Marketing Director UK & Ireland at Imperial Brands. “To tap into this rising trend, retailers need to ensure they are dedicating sufficient space in store for vaping products and stocking the right range for their customer base.”
There is currently significant growth in the disposables category. Now accounting for an impressive 88% of all vape sales (ITUK estimates), the disposables market saw a remarkable increase from £141m in 2021 to £973m in 2022 (ITUK).
Data also shows that both closed pod systems and open systems remain popular choices for vapers, accounting for 17% of the UK vaping market (ITUK).
“To tap into this trend, we’d recommend that retailers stock a range of leading pod systems, including our blu 2.0 device,” adds Rasool.
“Retailers should ensure they review their range regularly and prioritise stocking the brands that cater to these fast-moving trends in order to remain current and maximise sales. With this in mind, we’d recommend stocking a range of leading disposable products like blu bar 1000, and pod-mods such as blu 2.0, to take advantage of the growing demand.”
With continued consumer demand for disposable vapes, Imperial Brands has recently launched a new and improved blu bar 1000 device to help retailers tap into the continued consumer demand. blu bar 1000 benefits from an array of product upgrades and new features, providing the perfect solution to help retailers grow their vape sales even further in 2024.
Available with an RRP of £5.99, the fully compliant blu bar 1000 range offers up to 1,000 puffs per device and features blu Flavour Tech mesh coil technology to deliver strong bursts of flavour that really lasts. The redesigned casing on blu bar 1000 also means that the liquid level is visible through the translucent mouthpiece, making it much easier to see when the liquid is running low.
With a new removable battery, users can now twist, pop and release it, making it easy to safely dispose of the used battery at a local battery collection point. A new security lock feature allows users to lock their blu bar 1000 device when not in use. blu bar 1000 has initially launched in eight flavours, including Blueberry Ice, Strawberry Ice, Watermelon Ice, Banana Ice, Mint, Grape, Tropical Mix and Blueberry Cherry, with more due to launch.
“While the disposable vapes ban announcement may have brought concern for many retailers, it’s important to note that if the draft regulations pass through parliament, the ban is not set to come into force until 1st April 2025, which means that it’s business as usual for now,” says Rasool.
“Despite the announcement, it’s unlikely that the demand for disposable vapes will slow down any time soon, so we recommend that retailers continue to stock a wide range of leading disposables, like our new blu bar 1000, in order to cater to this trend and in turn, maximise sales.”
When it comes to flavours, fruity flavour profiles are the most popular among adult vapers, with recent data showing that Watermelon, Strawberry, Berry Lemonade and Blueberry Sour Razz are now the top-selling vape flavours (ITUK). The new blu bar 1000 features three of these top four flavours in the market, so ITUK highly recommends stocking it in order to successfully tap into this trend.
“The vape category is continually evolving. Retailers therefore need to ensure they are staying on top of the current trends in the category so that they can revise their range to offer any products proving popular with customers. Making room for a small selection of new products will also allow retailers to trial them first before they invest in adding these as a permanent part of their range,” suggests Rasool.
“Retailers should also regularly review their main range to ensure it caters for their customers’ needs. For example, are there any particular vape flavours or devices that customers are buying frequently that would be worth investing in more stock or making them more visible in store? Having access to these types of insights, combined with customer feedback, will enable retailers to amend the range available on a frequent basis to ensure their range is still fit for purpose.”
Retailers are a hugely important route to market for ITUK, representing a significant proportion of the company’s sales. As such, the company continuously invests in supporting retailers so that they can make the most out of ITUK’s products with sales and trends advice, promotions, store visits and in-store furniture.
As well as supporting retailers through a team of sales representatives, the Ignite app is another great resource and allows retailers to keep up to date with the latest news, information and training opportunities to help them perform at maximum efficiency. It includes a wide range of tools and advice, including incentive articles, downloadable POS, product information and top tips on how to increase sales in store.
Gleb Pugacev, UK Managing Director at Scandinavian Tobacco Group UK (STG UK), comments: “Nicotine pouch sales are really gathering pace in the UK and flavours are driving that growth. In fact, in 2023, UK pouch sales accounted for a 10% share of global pouch revenue. We recognise these pouches represent a great opportunity to support tobacco harm reduction in adult smokers.”
STG has recently announced its entry into the next gen nicotine category with the launch of XQS pouches. This new range has been created in Sweden, the home of nicotine pouches, and has been available to retailers from May onwards, competitively priced at just £5.50. STG launched XQS in a range of four great flavours with a variety of strengths: Tropical, Blueberry Mint, Cool Ice and Arctic Freeze. While the Tropical and Blueberry Mint variants give users a fruity burst of flavour, the Cool Ice and Arctic Freeze variants offer minty flavour and an icy, cooling sensation. All four variants come in fully recyclable packaging and contain uniquely smaller sized pouches to ensure a perfect fit under the lip.
The UK launch of XQS will be supported with a large consumer and trade marketing plan, as well as dedicated stands at a range of trade shows. STG will also be supporting retailers with a range of XQS point of sale material including large or small stockable units, trial encouraging clip strips or visibility units.
“Our Consumer focus for XQS will be via social media where we will be across all major channels, and there will also be a host of consumer-based activities throughout the Summer, where we will be present in major cities and festivals,” adds Pugacev.
With regards to the impending ban on disposables, John Rennie, Director of Commercial Operations at Philip Morris Limited (PML) in the UK and Ireland, comments: “Retailers must grasp the significance of this pivotal moment and adjust their strategies accordingly. By incorporating innovative products like IQOS ILUMA and TEREA tobacco sticks into their offerings, they not only navigate these shifts, but also thrive in the emerging smoke-free era.
“In the UK, 73% of adult smokers have tried vaping, but only 23% have stuck with it (Ash). Recognising that no single smoke-free product can cater to every smoker’s preference, embracing a multi-category approach becomes indispensable for those investing in their smoke-free portfolio.”
The UK is at a pivotal moment in its journey towards a smoke-free future; a downward trend in demand for combustible tobacco indicates a steady, but continuing decline in smoking itself.
“Over several years, cigarette sales have fallen in the convenience trade and in the grocery multiples, demonstrating that more smokers are abandoning cigarettes, which is always the best choice, or switching to smoke-free alternatives,” adds Rennie.
At Philip Morris International (PMI), the parent company of brands such as Marlboro and IQOS – the world’s number one heated tobacco product (PMI estimate) – this shift has been reflected by a significant milestone.
During PMI’s end-of-year 2023 financial results, the company’s CEO revealed that IQOS had surpassed Marlboro in global net revenues, becoming the Company’s number one international nicotine brand (PMI).
“This may sound like self-interest; a moment for us on our own journey to becoming smoke-free, but this announcement marks a turning point that anyone listing tobacco and nicotine products should acknowledge and respond to,” says Rennie.
PMI estimates that approximately 20.8 million adults around the world had already switched to IQOS and stopped smoking. Smoke-free products accounted for approximately 37% of PMI’s total full-year 2023 net revenues.
Philip Morris’ current product portfolio primarily consists of cigarettes and smoke-free products. Since 2008, PMI has invested $12.5 billion to develop, scientifically substantiate and commercialise innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes.
IQOS ILUMA’s innovative bladeless technology offers adult smokers and adult nicotine users an affordable, all-in-one tobacco experience without any smoke or ash, and less smell than cigarettes for a seamless and cleaner experience. The range of TEREA tobacco sticks include nine tastes, from classic or menthol tobacco to aromatic blends.
IQOS ILUMA complements gantries because it offers a real tobacco taste and satisfaction, with 95% less harmful chemicals compared to cigarettes and enables savings of up to £3,000 a year. It’s these attributes, coupled with evolving preferences among adult smokers and nicotine users, which have elevated IQOS beyond Marlboro.
Marlboro was first registered as a trademark in 1908 and by 1972, had become the world’s best-selling cigarette. Marlboro has since maintained its position, owing to impressive sales performance, global availability, and strong brand recognition.
While it took Marlboro 115 years to establish its dominance, IQOS has surpassed the world’s most valuable cigarette brand in less than a decade since its launch. In the UK, as with many other markets, the growth of heated tobacco has been a sharp contrast to the decline in cigarette sales.
Nationally, the percentage of convenience retailers now selling TEREA and HEETS tobacco sticks has risen by 42% in two years (Nielsen), while cigarette sales declined by 34% during the same period (Nielsen).
This trend is also reflected in grocery multiples, where sales of IQOS kits grew by 269% between September 2021 and December 2023 (Nielsen), while cigarette sales declined by 27% (Nielsen).
“The demand for heated tobacco products will continue to grow as more adult smokers seek better alternatives, but the impact will not be limited to combustible tobacco products alone,” continues Rennie.
Globally, total IQOS users at year-end (2023) estimated at approximately 28.6 million (up by 3.7 million versus December 2022), 73% of which (approximately 20.8 million) had switched to IQOS and stopped smoking.
Anis Safri, Sales Director, IVG Bar, comments: “There is a growing trend for alternative nicotine delivery systems, such as pod systems and nicotine salts, catering to consumers seeking smoother vaping experiences and higher nicotine concentrations to facilitate the switch from smoking.
There is a notable shift towards customisation and personalisation within the vaping community, with an increased emphasis on customisable devices, flavours, and vaping styles to suit individual consumer preferences. The industry is witnessing a surge in interest in legal BIG PUFF devices such as IVG 2400 4in1 which is the first to market. Such devices give consumers a longer vaping experience and flavour variations within one device, without the hefty price tag.
“The immediate effect of the ban on disposable vapes will be a shift in range and choice for the consumer,” adds Safri. “Retailers may also have concerns about overstocking and not having long enough to transition, however, IVG are ahead of the curve with creating new products, giving retailers enough time to stock products incrementally for early adopters to start picking up the new devices. Another concern may be whether former vaping consumers will easily make the switch to compliant products, we plan to combat this by designing products to be as convenient as possible for the end user.”
Once the ban timeline is clarified and any other changes in regulations defined, shelf facings will be taken over by new product lines that are optimised to the new regulations, which is currently predicted to be rechargeable and reusable pod devices. Outlets will be relying on the manufacturing and key brand’s supply chains, to have exciting and compliant products to replace disposables. Retailers will also need supporting educational POS to communicate with former disposable consumers on the benefits of pod device vaping, so that there is not a drop off in revenue.
“If the Government allows for a phased and sensible transitioning timeline, the switch can be well managed. Failure to manage the transition efficiently could result in overstocks and huge discounting of disposables which will potentially exacerbate the underage disposable vaping issue,” says Safri.
“At IVG, we’re always keeping an eye on the latest trends in vaping flavours,” Safri continues. “Right now, some of the flavours gaining popularity in the Next Generation category include refreshing fruit blends like mango pineapple, tangy citrus mixes such as lemon and lime, raspberry and indulgent dessert-inspired options like creamy vanilla custard and coffee. Additionally, exotic combinations like lychee ice and tropical fruit medleys are capturing the interest of vapers. We pride ourselves on offering a diverse range of high-quality flavours to cater to the evolving preferences of our customers.”
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