The trade in illegal vapes in particular provides a high-profit cash market for serious organised crime in the UK, enabling drug trafficking, human trafficking, modern slavery and money laundering, alongside the exploitation of children and vulnerable adults.
Likewise, raid intelligence shows that shops selling illegal vapes often serve as distribution points for other illicit goods, including cannabis, heroin, weapons, and counterfeit technology.
The trade also deprives public services of millions in tax revenue and creates unfair competition that undermines law-abiding retailers.
A 2025 consumer study polled 2,000 vapers across the UK and found a significant proportion had bought suspected illegal products from local convenience stores (36%), local vape shops (33%), and market stalls or street traders (26%).
2025 also saw more than 14,000 cases of UK businesses possessing or selling illegal vapes, with industry estimates suggesting that as many as one in three vapes sold in the UK are illicit.
Tolga Kilic, BAT Commercial Director, UK and Ireland, tells Grocery Trader the size of the UK illegal vapes trade and what BAT is doing to combat illicit nicotine sales.
How big is the trade in illegal vapes in the UK? How much does the illicit trade cost the government in lost tax revenue?
The problem of illicit trade is indeed widespread in the UK and unfortunately, growing due to several factors. The illicit tobacco market is already extremely well-established.
The black market for tobacco is booming on our own shores, according to the latest figures from HMRC, the combined tax gap from unpaid duty and VAT on illicit tobacco cost the UK taxpayer an estimated £1.7 billion in lost revenue for the 2024/25 financial year.
In one single operation, Trading Standards seized 46 million illicit cigarettes and over 12,500 kg of hand-rolling tobacco across a three-year period. Despite these efforts, illicit tobacco and illicit nicotine trade in the UK continues to grow significantly, with official estimates failing to capture the true scale of the issue.
Is there evidence to show shops selling illegal vapes serve as distribution points for other illicit goods? What kind of illicit goods does this include?
It is our understanding that shops that do sell illicit vapes do tend to distribute other illicit goods.
According to Trading Standards and HMRC, many of those that sell illicit products often have links with organised crime.
It is therefore large, complex organisations that are also involved in broader illegal activities that tend to be behind such activities.
How many people have bought illicit vape products and where do they buy them?
It is difficult to place a number on the number of people who have bought illicit vape products. Worryingly, a lot of these products can be purchased on store shelves up and down the country.
What proportion of vapes sold in the UK are illicit?
According to a recent BBC News Investigations, more than six million illegal vaping products were seized by Trading Standards officers across England between 2022 and 2024. This highlights the massive scale of the illicit market currently flooding UK high streets.
Will the Tobacco and Vapes Bill do enough to combat illegal trade? What action is the bill taking regarding the illegal trade?
The biggest step forward in tackling illegal trade is the introduction of a retail licensing system.
A retail licence works for alcohol, and we believe it will work for nicotine products.
However, we are disappointed at the level of fines the Government appears set to implement for those caught breaking the law as it is unlikely to deter unscrupulous retailers.
Do Trading Standards need more funding and resources?
Firstly, we know law enforcement officers have done and continue to do an excellent job in the fight against illicit activity.
But we also know there are growing demands in this field, and resources are more stretched than ever. That is why we have long-called for increased resources for UK Border Force and Trading Standards funded by excise and increased fines.
In its recently published ‘Hidden in Plain Sight’ report, the Chartered Trading Standards Institute have been critical of persistent funding cuts over the past decade and have recommended to Government an additional £20m to bolster Trading Standards resources for Local Authorities with ports and borders.
Such funding would help crack down on the transfer of illegal products through UK entry points.
Do you believe there should be compulsory pre-market testing legislation for vape products?
At BAT we have long-advocated for compulsory pre-market testing.
We know where our vapes are designed, and what is in them. The same rigorous standards must apply across the industry.
Mandatory pre-market testing is a vital step forward in protecting consumers from illicit vapes and helping to restore public trust in the vapes available on the shelves.
The indications are that the Government will seek feedback on the introduction of such testing in upcoming consultations. We encourage anyone impacted by the trade of illicit nicotine products to respond to this particular angle.
Should a timeline for the implementation of the retail licensing system be published?
Yes. This system will impact businesses up and down the country so a timeline of implementation is necessary to help prepare for this change.
In addition to higher fines and stricter punishments for rule breakers, we also hope to see this system introduced as soon as possible. It is something BAT has campaigned heavily in favour of for several years and whilst we are happy that the Government has listened, everyday without the system ultimately benefits illicit activities.
And as for those businesses who will be impacted by this system, please be assured that BAT’s local field representatives will continue to support you throughout its implementation. They will provide guidance on upcoming changes, assist with staff training, and help you adapt to any new requirements, ensuring you feel confident and prepared.
What type of collaboration needs to happen between the private sector and enforcement authorities to drive tougher enforcement? What are some examples?
To law enforcement agencies and Government, we say let’s work together. Listen to retailers and listen to industry. We all want to put a stop to illicit trade and this can only be achieved through co-operation.
As an industry leader, we can spot illicit nicotine products as well as anybody. Where possible, we have tried to educate law enforcement agencies on these products and the potential dangers of them. And through our world-class R&D facility in Southampton, we can support work on testing product samples to better understand what is actually in them.
Unfortunately, what we continue to see is a degree of scepticism in some quarters about our true intentions. Some groups would rather help enable the illicit market rather than work with industry and take advantage of the expertise and knowledge on offer.
The only winners here are the gangs profiteering from these illegal activities. We know these criminals have no respect for the law and where these activities are allowed to flourish – more criminality inevitably follows.
What is BAT doing in the UK to combat the illicit sale of nicotine products?
As an industry leader, we can spot illicit nicotine products as well as anybody. Where possible, we have tried to educate law enforcement agencies on these products and the potential dangers of them. And through our world-class R&D facility in Southampton, we can support work on testing product samples to better understand what is actually in them.
Secondly, we invest in retailer education—helping store owners and their staff to identify counterfeit or non-compliant products, understand evolving regulations, and ensure they remain compliant in a changing landscape. This includes guidance on product authentication, compliance standards, and responsible retailing.
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