As more consumers seek out alternative nicotine solutions, the vape market is continually expanding with the number of vapers in the UK increasing from 3.7m in 2021 to 4.3m in 2022 (ECigIntelligence).
In the UK alone, the category is now worth around £1.2bn and is expected to reach £1.4bn in the next three years (ECigIntelligence).
With 35% of current vaping 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 in 2023.
Tom Gully, Head of Consumer Marketing UK&I at Imperial Tobacco, comments: “We’re currently seeing significant growth in the disposables category. Now worth 83% of all vape sales (ITUK), the market saw a remarkable increase from £141m in 2021 to £973m in 2022 (ITUK). In order to cater for this growing demand, we have recently announced our entrance into the expanding disposables market with our new blu bar vape range.”
Recent data also shows that both closed pod systems and basic open pod systems remain popular choices for vapers, accounting for 17% of the UK vaping market (ITUK).
“In order to tap into this trend, we’d recommend that wholesalers stock a range of leading pod systems, including our newly launched blu 2.0 device,” adds Gully.
“Wholesalers 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, and pod-mods such as blu 2.0 to take advantage of the growing demand.”
The recently announced blu bar range comprises a quality collection of disposables and ready-to-use vape products with a compact pocket size design that allows for the ultimate on-the-go convenience. Each blu bar device contains 20mg/ml of nicotine in 2ml of e-liquid providing up to 600 puffs, and features a LED indicator that lights up when in use.
Available to buy at a MRRP of £5.99 per device, the new blu bar range includes six flavours, carefully chosen due to their consumer appeal, including Kiwi Passionfruit, Mango Ice, Banana Ice, Peach Ice, Watermelon Ice and Strawberry Ice. Each blu bar features bright and vibrant bursts of colour, both on the device and on the pack to create great standout on the shelf and help with range navigation in store.
“No two depots are the same so it’s important for wholesalers to take time to consider what customers are buying most frequently, or not buying at all, and then adapting the range accordingly,” says Gully.
“Ultimately, we’d recommend stocking as broad a range as space allows and then fine tuning this in the weeks and months that follow according to customer feedback and sales. The wholesalers who can remain agile, will be in the best position to cater for their customers and grow their nicotine sales as a result.”
There is a huge variety of different next gen nicotine products available on the market today, so deciding what to stock can be a daunting task. Wholesalers are therefore in an excellent position to provide advice to retailers on what products they should be stocking, as well as insights into the latest trends shaping the category, such as the rising demand for value.
By being informed about the market and familiarising themselves and their staff with the different products, terminologies and market trends, wholesalers can provide much needed guidance to retailers about what consumers are buying.
Retail Vape Sales Data for the last 12 weeks (23 April) has revealed some impressive results for AF Blakemore, highlighting the company’s position as a leader in this growing sector. Out of the 16,392 UK vape outlets, the company owned store division Blakemore Retail accounts for an impressive 22% of the top 500 stores and represents 25% of the top 20 vape outlets in the UK.
The figures speak for themselves, with Blakemore Retail averaging 241% higher sales than their competitors. This outstanding performance is a testament to the company’s unwavering commitment to delivering a best-in-class offering to customers.
Blakemore Head of Trading, Jo Wrate, expressed her pride in the company’s achievements, stating: “We are incredibly proud of our Vape offering at AF Blakemore. We have invested heavily in a proposition that combines responsible sourcing, stock management, investment in new ranges and high-impact gantries to create a truly exceptional experience for our customers.”
This level of success is a clear indication of the company’s dedication to excellence and their willingness to invest in creating the very best retail experience for vape enthusiasts.
The business is also finalising plans for a 12 week trial for a pilot recycling scheme in partnership with Mitie Waste. The pilot is expected to run in 31 stores starting on 22 May.
Wrate continues: “As a responsible retailer it is essential we take action to ensure the right measures are in places to enable safe vape recycling. Our pilot scheme will seek to understand customer behaviour and take up rates with recycling data being provided by stores every 4 weeks.”
There is no doubting AF Blakemore’s commitment to being at the forefront of the vape industry and their dedication to provide customers with the very best products, prices, and service.
Ebrahim Kathrada, Managing Director, Aquavape, comments: “Disposables will remain a crucial part of the retail landscape. However, as budgets become tighter due to the current economic environment, adult vapers will likely ditch disposables for more budget-friendly and easy-to-use vaping systems. The apparent product trade will be to pre-filled pod devices.”
Pre-filled pods are perfect for vapers who want a simple vape kit, offering the disposable vape experience in a more environmentally friendly and cost-effective format. In most cases, consumers will get two 2ml pre-filled pods for the price of one 2ml disposable.
“Make sure you allocate the right space to the right brands that are selling. With new flavours coming in all the time, it will give you the flexibility to keep your range on trend and always available. Recent data we are analysing suggests that specific flavours can drive sales and that adult vapers are willing to switch brands flippantly to stay loyal to their favourite flavour. At Aquavape, we provide a comprehensive category management solution that includes visual planograms. We conduct regular reviews of the planograms for all our units to ensure they are up-to-date with the latest trends,” adds Kathrada.
“Retailers must take proactive steps to prevent the sale of vapes to minors. Retailers must take this responsibility seriously and implement robust measures to prevent underage vaping. Adopting the Challenge 25 policy is an effective way for retailers to tackle this issue.”
An Easy Bar spokesperson comments: “One significant trend in the vaping industry is the growing popularity of disposable vape devices. These devices have gained traction primarily due to their convenience and low-cost setup. Disposable vapes offer a hassle-free experience as they come pre-filled with e-liquid and require no maintenance or refilling. They are designed for single use and can be discarded once the e-liquid or battery is depleted.”
Fruit-inspired flavours have been consistently popular as they appeal to a wide range of consumers, and flavours like Strawberry, Melon, and Pineapple are popular. Still, recently, we have seen a selective uptake in Berry-flavoured liquids. Mixed berries, Raspberry and Blueberry, seem to be very popular currently alongside mixed combinations, taking the popular fruit flavours and combining for that unique new flavour such as Orange Pineapple found in the latest easy Bar.
Easy Bar recently launched to market its new product, the easy Bar 600, which in its launch weekend, was awarded ‘Best Overall Disposable’ at Vaper Expo UK 2023.
“Right now, our industry is under scrutiny more than ever for manufacturers to bring responsible products to market to omit the appeal to underage use,” adds the spokesperson. “We thought about this a lot when bringing Easy Bar to market. We opted for a minimal aesthetic with our packaging with the sole aim of the product being used to transition the adult smoker from traditional combustible cigarettes. We also need to think about the environmental impact of the rise in disposable products, and retailers must try and get involved with the many recycling initiatives that have been launched.”
Peter Styles, Strategic Marketing manager, EDGE Vaping, comments: “While disposable vapes remain a lucrative segment of the total vaping market, we have begun to see a shift in consumer interest. People are beginning to seek out alternatives to single-use vapes, and have shown a willingness to move onto the ‘right’ pod system.”
Features defining the ‘right’ pod device include a balance of simplicity and convenience comparable to disposables, with the ability to support fruit-flavoured nic salt e-liquids, without the associated stigma of being untested/unsafe, uneconomical, or environmentally damaging – concerns fostered through regular media campaigns highlighting said issues.
For many, flavours and brand recognition are playing a big role in the decision-making process, with many switching over to the ELFA closed pod system, which is also produced by the UK’s number one disposable vaping brand, Elf.
“In light of concerns over illegal disposable variants reaching UK shelves and a spike in underage vaping and illegal sale to minors reportedly driven by the single-use devices, a ban of some form could be imminent. UK parliament are set to discuss this matter further in the coming days, after which the future of this sub-category could become clearer,” adds Styles.
Kate O’Dowd, Head of Commercial Planning at Philip Morris Limited (PML) in the UK and Ireland, comments: “The current economic climate has greatly impacted consumer spending, with shoppers looking to offset rising costs incurred over the Christmas period, while battling against the inflationary costs of everyday goods. This tightening of purses means that existing adult smokers and adult nicotine users may look for cost-effective nicotine-containing alternatives and forgo their usual brand selection for a more affordable option.”
This change in consumer spending was reflected in a recent PML-commissioned survey. When asked what adult smokers will look for when choosing a smoke-free alternative, convenience retailers prioritised price – with over half (57%) agreeing that adult customers would select the cheapest products available, followed by those products offering the best overall value for money (18%, KAM).
The survey also found that 60 per cent of convenience retailers are likely to recommend smoke-free products, such as e-cigarettes and heat-not-burn products, to adult smokers as more affordable choices in 2023 (KAM).
With HEETS tobacco sticks costing less than half the price of an average pack of cigarettes, IQOS – the UK’s number one heat-not-burn product (Nielsen) – provides adult smokers with a better choice, at a fraction of the price of smoking.
PML recently entered the disposable e-vapour segment in the UK, with the launch of VEEBA – a premium and recyclable e-vapour product that strives for excellence in design, quality, and compliance.
VEEBA is PMI’s custom-developed disposable e-vapour device, which is available in nine flavours – ranging from classic tobacco to menthol and aromatic flavours.
Chris Aikens, External Affairs Manager, RELX, comments: “Disposables are popular amongst adult consumers within the UK, as these devices offer convenience and simplicity. Retailers should consider offering disposable vaping devices as an option for on-the-go adult vapers, who prefer a hassle-free vaping experience. Closed-pod systems remain popular in the UK market, particularly amongst existing adult smokers who have made the switch. Offering a range of starter kits and pod systems with pre-filled flavoured pods can cater to the needs of different adult vapers in the UK.”
RELX International has expanded its selection of premium vapes with two new disposable devices, WAKA soPro and WAKA soFit.
Each device, offering 600 puffs, is built with a cutting-edge MESH 2.0 coil to maximise the richness of flavour in every puff.
WAKA soPro is small and pebble shaped, designed to fit discreetly into small pockets whilst offering intense cloud bursts.
WAKA soFit is bar-shaped and boasts a glossy finish and crystal-effect mouthpiece for an unparalleled taste profile.
The devices are available in 10 unique flavours, both offering, Blueberry Raspberry, Triple Mango, Pink Lemonade, Blueberry Splash, Strawberry Burst, Watermelon Chill, Red Buzz, Kiwi Passion Guava, and Pink Twist, with the addition of WAKA SoPro Lemon Lime and WAKA soFit Dark Sparkle.
The past year has seen factory-made cigarettes fall 9.0% in value and 14.0% in volumes, while the vaping category has seen a growth of 108% in value with annual sales of £1.5bn through tracked channels. The majority of growth in the category has been driven by disposable e-cigarette products, especially within the convenience channel. Sales of closed-pod systems and open systems remain flat overall. JUUL2 is however the number one growth driver within the closed systems category with 73.4% share of Menthol and 24.7% share of tobacco (IRi Value Sales Total Market to 12th March 2023).
To date, the UK has taken an evidence-based approach that recognises the significant harm reduction potential in encouraging adult smokers to switch to alternatives like e-cigarettes, and in so doing, reduce the death and disease associated with tobacco use. This approach is, however, undermined by the risk of underage use and illicit or non-compliant products, impacting the opportunity for vapour products to contribute to the Government’s 2030 smoke-free goals.
“The policy landscape needs to evolve towards a more responsible framework. This is why we welcomed the new measures recently announced by the Government to combat underage use of e-cigarettes, alongside enhanced measures and funding to support enforcement of existing vaping regulations,” Richard Cook, Director of National Accounts, Juul Labs comments.
“It is important that the vapour industry stays focused on these new emerging issues i.e. limiting the access and appeal of its products to non-nicotine users – especially those underage.”
A retailer education platform at www.juullabsretailer.co.uk provides training and support for all partners, ensuring that they adhere to mandatory policies to curb underage access to JUUL products. A continued focus on responsible marketing practices also ensures limited exposure and appeal to unintended audiences, while a commitment to sustainability has resulted in a successful trial of a take-back scheme, which JUUL hopes to roll out alongside a recycling programme for used pods and devices later this year.
E-cigarettes remain the largest and fastest growing category in reduced-risk alternatives and now accounts for over 9% of tobacco category sales, having added over £60 million to category growth over the past year. However, FMC cigarettes and RYO still account for over 65% and 22% respectively of category sales (Source IRi Total Market Value Sales to 26 Feb 2023). This indicates that there is significant headroom to provide adult smokers with credible smoking alternatives like vapour products to replace combustible cigarette use.
Juul Labs has focussed resources on the development of technologies aimed at transitioning adult smokers away from cigarettes and combating unauthorised and underage use of its products. The new JUUL2 system was updated from previous versions with new technologies and features to provide a more enhanced vapour experience, alongside the capability to combat potentially harmful and compatible pods. The company has been encouraged by the number of adult smokers and vapour users who have transitioned to the JUUL2 system since launch and has recently introduced new Blackcurrant Tobacco pods which will provide even more smokers with greater choice to help them move away from cigarettes.
JUUL2 has a portfolio of menthol and tobacco based flavoured JUULpods, targeted at traditional adult smokers looking to transition off combustible cigarettes. The latest flavour to join the range is Blackcurrant Tobacco, which was launched nationally into stores in February, adding to the wider JUUL2pods portfolio of Virginia Tobacco, Autumn Tobacco, Crisp Menthol, Polar Menthol, Ruby Menthol and Summer Menthol.
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