Recent data shows that both closed pod systems and basic open systems remain popular choices for vapers, accounting for 70% of the total UK vaping market size in 2022 (35% closed pod systems / 35% open systems, ECigIntelligence).
But although these devices account for a large majority of the share, there is also significant growth in the disposables category, which is currently worth around £132m and makes up 10% of the market share – up from 5% in 2021 (ECigIntelligence ).
“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,” comments Tom Gully, Head of Consumer Marketing UK&I at Imperial Tobacco. “With this in mind, we’d recommend stocking a range of leading closed pod systems, like myblu, and compatible liquidpods to take advantage of this growing demand for pod mod devices.”
Recent figures show that the pre-filled pods category has grown to be worth around a whopping £558m, with the e-liquids category worth £355m (ECigIntelligence). This provides a huge sales opportunity for wholesalers.
“To effectively tap into this opportunity, wholesalers should ensure they are selling a wide range of pre-filled pods and e-liquids in a variety of flavours and nicotine strengths, including nicsalts like myblu Intense, to ensure they have products on offer that allow their retail customers to attract and meet the needs of different consumers,” adds Gully. “Menthol is the most popular myblu flavour, followed by flavours in the earthy and fruity flavour categories (ITUK), so we’d highly recommend stocking a range in line with these particular flavour categories.”
The vape market is continually expanding as more consumers seek out alternative nicotine solutions. In the UK alone, the category is now worth around £1.2bn and is expected to reach £1.47bn in the next three years, with around 35% of current vaping volume sales taking place in the convenience channel (ECigIntelligence). The number of vapers in the UK has grown by 3% over the last year to 3.6m, so it’s clear that there will be continued demand from consumers for vaping products (ECigIntelligence). 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.
The myblu pod-mod device is one of Imperial Tobacco’s leading vape products. The device combines the performance demanded by experienced vapers with the ease-of-use appreciated by new entrants to the category. The device’s hassle free Liquidpods allow vapers to switch between flavours in seconds via a simple one-step ‘click and go’ system.
“There are various ways to train staff but one particularly effective way of improving staff knowledge on vaping products is through running product demonstrations using samples of the devices being sold in store,” says Gully. “Allowing staff to handle the products themselves and get to know the different components using demonstration models, or sample liquids, will really help them understand more about how they work, so they can pass this information on to customers.”
Using similar demonstration models can also be a great way to educate customers on the devices before they buy so they leave the store fully informed on how to use a product.
“Reading up on the latest category developments and news in features such as this in the trade press is also a really great way to increase their understanding of the key trends, different terminology, and new products,” Gully continues. “There’s a wealth of information at their fingertips that will go a long way to help them get to grips with the category.”
Imperial Tobacco’s Ignite app is another useful resource for retailers, allowing both them and their staff to stay on top of the latest news, information and all training opportunities to ensure their store runs to its fullest potential. The app offers users a range of helpful tools and advice, including incentive articles, downloadable POS, product information and key tips on how to maximise sales in store.
“Being able to spot a customer that needs extra help or guidance is also key,” Gully suggests. “It may be that they simply look at what vapes are currently on display or request a brand that currently isn’t stocked and are about to leave the store. To help cater for these customers, retailers should encourage all staff to proactively ask customers if they require any help or have any questions about the different types of vape products or liquids in a friendly and polite way so that the customer feels like they can approach them with ease. The retailers that are equipped to do so will not only be in a great position to maximise their sales of vaping products, but are also more likely to build a loyal customer base that will continue to return time and time again to buy products from other categories as well.”
Retailers are a hugely important route to market for Imperial Tobacco, representing a significant proportion of sales. As such, the company continuously invests in supporting retailers so that they can make the most out of Imperial’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, Imperial’s 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.
Gemma Bateson, Sales Director at JTI UK, comments: “A key trend within the nicotine pouch category is the continued demand for higher nicotine strengths. Strong and Extra-Strong now make up 76.3% of nicotine pouch sales (IRI), and Extra-Strong is the fastest growing strength (IRI), so we advise wholesalers to provide a good choice of products in this segment.”
To help wholesalers and retailers tap into this trend, Nordic Spirit recently expanded its portfolio with the launch of a new flavour, Spearmint, and a new Extra-Strong nicotine strength for Bergamot Wildberry. The new launches are both available in an Extra-Strong strength to reflect the growing demand for stronger variants in the nicotine pouch category. The latest variants will help wholesalers provide a range of options for customers seeking a stronger nicotine experience.
The demand for mint-flavoured products has soared to new heights within the category, with the market currently split 80.2% menthol and 19.5% fruit (IRI).
“To keep ahead of this growing trend, wholesalers should ensure they always stock a range of flavours within the higher strengths,” adds Bateson.
New for this year, Nordic Spirit’s Spearmint pouches gives wholesalers the first-ever Spearmint flavour in the category in an Extra Strong nicotine strength. With this product, wholesalers can offer a sweeter tasting alternative to the classic Mint variant.
Mark McGuinness, Marketing Director at JTI UK, comments: “Sales of tobacco flavoured Heated Tobacco variants account for 52% of all refill sales in traditional retail (IRI), with Menthol flavoured accounting for 44% (IRI). JTI always looks to keep on top of trends and listens to what consumers want when it comes to meeting demand for new flavours. As a result, JTI has established itself as a destination for flavoured tobaccos and flavoured capsules within the sector.”
To cater to current trends, JTI recently launched a crisp apple and menthol variant named Ruby, alongside two new alternative variants with crush capsules, Green and Purple. These new flavours allow the consumer to discover a new taste sensation with EVO flavoured capsules. Both are a well-balanced and smooth tobacco flavour, with a subtle mint infusion that releases a burst of flavour when the capsule is crushed.
“With a range that is designed to tap into consumers top flavour preferences, retailers across London can maximise this huge sales opportunity by stocking all eight EVO tobacco flavours,” holds McGuinness.
JTI has announced the launch of Ploom X, a new Heated Tobacco device featuring upgraded technology to enhance the customer experience. Available in the Greater London area, the device has been designed to deliver a superior and unique heated tobacco experience.
Ploom X is the latest device in the market and represents the cutting edge of the next generation of heated tobacco products. Offering an alternative but familiar tobacco experience by heating tobacco instead of burning it, it provides retailers with a modern product for those seeking a real tobacco experience without the smoke. The significant technological upgrades include a redesigned HeatFlow™ system and a higher heating temperature to ensure a more consistent nicotine delivery and enhanced flavour sensation from the first puff.
One simple heating mode makes the device easy for customers to use.
Adjustments to the airflow system enable a more consistent vapour delivery and increased vapour volume.
Session times are longer at up to 5 minutes and the device has the ability to use more EVO Tobacco Sticks per charge, with up to 22 sessions with just one charge.
The device is smaller and more compact. The front panel is also customisable for personalisation with a wider choice of accessories which will be available online at ploom.co.uk
Mark McGuinness, Marketing Director at JTI UK, says: “We estimate that the category will be worth £250 million by 2025, with 66% of consumers buying through traditional retail (IRI). So, there is really no better time to expand and upgrade our portfolio with Ploom X. This is just another step in the evolution of the Ploom brand, with improved technology that offers a truly unique experience for customers. We’re looking forward to providing retailers with the opportunity to capitalise on the category, which is already worth £91 million in traditional retail (IRI).”
Kate O’Dowd, Head of Commercial Planning UK & Ireland, Philip Morris Limited, comments: “This is the real upshot of increased competition in the smoke-free category; not so much pitting products against each other, but rather providing smokers with a greater choice of alternatives that enables them to switch away from cigarettes, if they can’t or won’t quit completely.”
To illustrate how competition is being overlooked to achieve this smoke-free goal, Philip Morris recently commissioned a study of more than 1,400 convenience retailers which found that over two thirds would look beyond local competition and work together to help their community go smoke-free.
“Competition can be a fantastic driver – even more so if the efforts involved lead to something meaningful, such as delivering a smoke-free future,” adds O’Dowd. “With manufacturers bringing better products to market and more retailers than ever before broadening their smoke-free offering, I truly believe we can help millions of adult smokers make a better choice.”
IQOS first launched in the UK in 2016. As a new tobacco product, IQOS quickly established heated tobacco as a category acceptable to the adult consumer with several indicators highlighting its potential in the market.
“IQOS is a viable alternative to cigarettes because it heats real tobacco for a more satisfying taste experience,” says O’Dowd. “That’s why the majority of smokers who trial it, switch away from smoking for good.” IQOS is more affordable with 20 HEETS costing less than half the average price for a pack of 20 cigarettes (ONS). Customers also have access to ten HEETS variants – ranging from menthol to traditional tobacco blends – which means there is a variant to meet every consumer need.
Philip Morris Limited has commenced the roll-out of IQOS ORIGINALS DUO, a revamped and renamed version of IQOS 3 DUO – the UK’s number one heat-not-burn product (Nielsen) – to indirect retail channels in the UK.
As part of the IQOS portfolio, IQOS ORIGINALS DUO combines revamped design features with Philip Morris Internationals’ time-tested, unique, and patented HEATCONTROL™ TECHNOLOGY which uses a flat wide ceramic blade to heat tobacco from the inside, delivering a real tobacco taste and satisfaction—backed by 6 years of scientific research and development.
Fully compatible with existing HEETS tobacco sticks, IQOS ORIGINALS DUO will begin replacing IQOS 3 DUO, with no buy-back or product swapping necessary. The new stock will filter through naturally, although retailers will be able to order the new kits via PML’s Digital Trade Engagement Platform from December. With an RRP of £39, IQOS ORIGINALS DUO will be sold as a kit, consisting of the two-piece device – with a compact and lightweight holder – and two packs of HEETS.
Data from Nielsen found that heated tobacco represented 18.6 percent of the total Reduced-Risk Product (RRP) market in the UK in 2021 (Nielsen), growing 86 percent versus 2020 (Nielsen).
The number of stores selling HEETS has increased seven-fold since January 2018. PML are now selling almost 40 times the volume of HEETS each month than it did on average in 2017.
The IQOS tobacco-heating system is the No. 1 heated tobacco product in the world (PMI).
PMI estimates that 12.7 million adult smokers having switched to IQOS and stopped smoking (PMI).
“Manufacturers, like Philip Morris International (PMI), are answering the call by using the competitive landscape as a driver to increase access to, and awareness of, products like IQOS, which offers a cigarette-like satisfaction that whilst not risk-free, is a better choice than continued smoking,” continues O’Dowd.
Scandinavian Tobacco Group UK has announced its entrance into the fast-growing nicotine pouch category with the introduction of its first ever non-tobacco product. Originating from Sweden, the home of snus and most nicotine pouches, STRÖM (which is Swedish for stream / flow) is a premium nicotine pouch which is truly inspired by its Scandinavian heritage.
Launching in three flavours (Fresh Mint, Minty Orange and Juicy Berry), STRÖM is available to retailers across Manchester for a six-month trial period to March, before being rolled out to other cities across the UK throughout 2023 and beyond. Members of the STG sales force will be calling on stores in and around the city, explaining to them why STRÖM is different to competitor brands and has such an exciting future in the UK, as well as offering them free stock to sell.
STRÖM is a top-quality nicotine pouch that offers a long-lasting flavour release and a controlled nicotine delivery. Being a plant-based product (with a unique resin-based formula in a market of salt-based products) and with a 100% plant-based plastic container (made from 100% bioplastics created with pine tree oil extracted from pine leftovers), STRÖM is a perfect choice for all those who seek a more natural alternative with a superb taste.
STG is supporting the trial in Manchester with a major marketing support campaign from October to December, which will give consumers the chance to see STRÖM advertised on buses, in the airport on video screens, in the train station, on the main roads, on the high streets, on street hubs and six sheet sites as well as phone boxes across Manchester.
STG’s UK Country Director Alastair Williams, comments, “Nicotine pouch sales are really gathering pace and that’s why we’re really excited to pilot our STRÖM brand in Manchester before rolling out the product to the rest of the UK. Retailers would be forgiven for thinking that the nicotine pouch category is already quite crowded, but we’re coming to the market with something more authentic, premium and sophisticated than what is already out there. STRÖM offers a prolonged taste delivery which enables an extended flavour sensation for your mouth and throat, as well as providing an equal nicotine release for a consistent and smooth experience. We’re also excited to be putting a huge marketing spend behind our regional ad campaign to raise consumer awareness and drive sales.”
Ahmad Hojeij, Associate Marketing Director, RELX, comments: “Within the thriving vaping segment, disposable devices have quickly become the sector’s market leader in 2022, due to a rapidly increasing trend towards convenience, as adult consumers increasingly seek easy-to-operate devices that can be purchased quickly and conveniently.”
It’s these ultra-accessible disposable devices that have delivered the most significant sales for retailers – a trend that has continued through Q4 and we expect to carry over into 2023.
Driving this growth is the availability of disposables, which offer adult consumers simplicity in usage, while simultaneously providing adult users with devices which are sleek, affordable and compact.
This growth can also be attributed to an ever-growing demand from adult consumers for a wide range of flavours. Disposable devices can be purchased in various, accessible flavours that appeal to the current tastes of adult consumers.
“Convenience has been the predominant adult consumer trend in 2022, this has carried over into Q4 and we predict it will continue to lead in 2023,” adds Hojeij. “As demand for convenience increases, so does the necessity for retailers to meet demand. Retailers should stock sufficient levels of disposable devices, which align with the adult consumer appetite for easy-to-operate devices and quick in-store transactions.
“This new category of adult consumer is also seeking devices which are sleek, affordable and compact, while also offering a premium vaping experience. Retailers should consider this style and spending trend when developing their range.”
Following increasing demand for convenience amongst adult consumers, RELX International launched the brand’s first ever disposable device, RELX Bar, this summer.
With 600 puffs per device, RELX Bar entered the market with 10 flavours including Strawberry Watermelon, Berry Ice, Raspberry Grape, Lychee Mango, and Bluecurrant, each providing a smooth inhale and high-quality vaping experience.
RELX Bar devices also feature a number of colourful designs and come with a transparent e-liquid cabinet, revealing the levels of juice remaining within the device.
When it comes to flavours, tangy fruit flavoured disposables and pods are currently the most popular amongst adult consumers.
Since launching in in May, the three most popular flavours of RELX International’s premium disposable device, RELX Bar, are Watermelon, Berry Ice and Raspberry Grape.
One of the key current issues within the next-gen category is the need for better quality testing and after-sales testing.
In response to this, RELX International this year pledged a new initiative – committing the brand to creating quality products that set the bar for the industry, as well as the safety of consumers.
As part of the commitment, the brand maintains rigorous testing and quality standards that follow all laws and standards for e-cigarette products.
Additionally, RELX has set up five labs over the past three years to create a full-scale quality testing system that also enables experts to conduct advanced research into e-cigarettes and vapor products.
“In order to maximise sales of next-gen products and encourage repeat custom, retailers must successfully merchandise their range. Visibility of products is key,” says Hojeij.
“Similar to the merchandising of any retail product, retailers should maintain tidy and well-stocked POS cabinets, as failure to do so can be off-putting and may result in adult consumers taking their purchase elsewhere.”
POS display cabinets are a great way to showcase the variety of devices and flavoured pods on offer within the store.
Elsewhere, to grow sales, retailers should also stock a sufficient variety of different devices, brands and flavours. Adult consumers are regularly looking for ‘the next best thing’ in next-gen, and many are open to trying new products, particularly in the disposables market.
Variety ensures that adult consumers have choice over their vape device and are encouraged to return in the future.
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