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 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 the rest of 2023 and beyond,” comments Tom Gully, Head of Consumer Marketing UK & Ireland at Imperial Tobacco. “To tap into this rising trend, wholesalers need to ensure they are dedicating sufficient space for vaping products and stocking the right range for their customer base.”
There is currently significant growth in the disposables category. Now worth 83% of all vape sales (ITUK), the disposables market saw a remarkable increase from £141m in 2021 to £973m in 2022 (ITUK). In order to cater for this growing demand, ITUK announced its entrance into the expanding disposables market with the blu bar disposable vape range.
Recent data also shows that both closed pod systems and basic open systems remain popular choices for vapers, accounting for 17% of the UK vaping market (ITUK). To tap into this trend, ITUK recommends that wholesalers stock a range of leading pod systems, including the blu 2.0 device.
“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,” adds Gully. “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.”
When it comes to flavours, mint remains the second most popular flavour profile in pod systems, however there has been some growth in popularity of fruity flavours profiles such as Strawberry and Blueberry. The latter flavours are mirrored in the disposable sector, where fruity flavours dominate the sales. In fact, recent data shows that Blueberry is now the top-selling disposable vape flavour (ITUK). However, we’re also seeing Berry increasing in popularity, with the flavour growing rapidly by 60% month-on-month (ITUK).
To help wholesalers take advantage of the sales opportunities in the growing disposables category, ITUK has launched three new flavours to its popular blu bar range.
Available to buy now at the same RRP of £5.99, the new additions joining the blu bar line up include Tropical Mix, Apple Ice and Mint Ice, taking the total flavour range up to 13 variants. Collectively, these flavour characteristics, including apple, pineapple, mint and mango, accounted for 10.75% of all vaping sales over the last six months, with their share contribution almost doubling against the same period a year ago.
The blu bar range offers a compact design for the ultimate on-the-go vaping convenience, with each device providing up to 600 puffs. The fully compliant range has been extensively tested and comes from a recognisable brand, making it a must-stock range to cater for the rising demand for disposables.
“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. 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 vape sales as a result,” says Gully.
“There is a huge variety of different 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.”
Mark McGuinness, Marketing Director at JTI UK, comments: “The Heated Tobacco category was worth £105 million in the last year in Traditional Retail (Circana), with a growth of 25.9% YoY. The Heated Tobacco category continues to grow at a rapid rate and offers huge potential, which is why we are continuing to invest and improve our offer.”
With demand for lower-priced tobacco alternatives showing no signs of slowing, the competitively priced Ploom X Advanced bundle offers value for money within the Heated Tobacco category. As well as being more cost effective for consumers, Heated Tobacco sticks also offer higher margins to retailers when sold at RRP.
The nicotine pouch category in the UK is growing and is now worth £4.8 million a month (Circana). This would equate to an annual figure of approx. £58 million a year (Circana).
The continued growth of the nicotine pouch category represents a huge opportunity for retailers, with mint by far the most popular flavour when it comes to nicotine pouches (Circana) and demand for stronger variants on the rise.
Sales of tobacco-flavoured Heated Tobacco varieties account for 50% of all refill sales in Traditional Retail (Market Place), with Menthol-flavoured accounting for 38% (Market Place).
With a range that is designed to tap into consumers’ top flavour preferences, JTI offers eight EVO tobacco flavours including: Bronze, Amber, Green, Magenta, Purple, Ruby, Green Option and Purple Option. “Mint-flavoured products have also soared to new heights within the category, with the market currently split 80.1% mint and 19.4% fruit (Circana),” adds McGuinness. “To keep ahead of this growing trend, retailers should ensure they always stock bestsellers within the higher strengths.”
The Heated Tobacco market continues to grow as existing adult smokers search for alternatives that can be used instead of, or alongside, their traditional tobacco products.
The Heated Tobacco category was worth £105 million in the past year in Traditional Retail (Circana), presenting a huge opportunity for retailers.
In light of this, JTI recently launched Ploom X Advanced, an updated version of the Ploom X device released in October 2022. The device includes two key improved features, an optimised HeatFlow™ system, with higher vapour volume during initial puffs offering an enhanced user experience, and faster charging, it now takes less than 90 minutes to achieve a full charge.
Ploom X Advanced is available in a strong-value pre-packed bundle that includes the Ploom X Advanced device, charger, USB cable, cleaning sticks – plus two packs of EVO Tobacco Sticks (Bronze & Green flavours). This bundle is available in the Greater London area in selected supermarkets and accredited independent and convenience retailers.
Existing adult smokers could also save up to £3,600 a year with Ploom. This is based on comparing the average cost of 20 cigarettes (RRP £14.54) with 20 EVO Tobacco Sticks (RRP £4.50) per day (ONS). “A key trend within the nicotine pouch category is the continued demand for higher nicotine strengths,” says McGuinness. “A total of 75.1% of nicotine pouch sales in traditional retail in the UK are from the Extra Strong or Strong strengths, so we advise retailers to provide a good choice of products in this segment.”
Nicotine pouches continue to grow rapidly, with the category currently accounting for a monthly value of £4.8 million (Circana), equating to an annual figure of approximately £58 million a year (Circana).
Over recent years, we have noticed an increasing demand for higher strength nicotine pouches, with existing adult smokers in the UK market favouring extra strong strengths, which hold a 40.7% share (Circana) in comparison to regular strength which holds a 16.6% share (Circana).
To cater to the growing demand for higher strengths and menthol products in the nicotine pouch category, JTI launched a new strength to its Nordic Spirit portfolio with Spearmint Strong in March 2023.
Following key trends in the nicotine pouch market, the new launch taps into the demand for extra-strong and strong strengths, while spearmint also offers retailers another menthol offering. With the category in clear growth and now worth £58 million a year (Circana), there is a big opportunity for retailers to build on the success in the market and grow with Nordic Spirit.
Richard Cook, Director of National Accounts, Juul Labs UK, comments: “Smoking alternatives now make up 12.4 percent of the total nicotine category (including factory made cigarettes and RYO tobacco) with e-cigarettes, heated tobacco and oral nicotine the only nicotine categories to show growth in the past year. E-cigarettes have added £71.7m to its category value in tracked channels while heated tobacco and nicotine pouches have risen by £1.8m and £2.4m respectively (IRi Total Market Value Sales 4 Weeks to 30th July 2023 vs YA).”
Within flavours, disposables over index in the fruit and sweet flavour segments with over 95 percent of sales coming from these profiles while 56 percent of closed system refills comprise more traditional flavours of Tobacco, Menthol and Mint. JUUL2 is the main growth driver in this area with 55 percent of category sales. (IRI Total Market Value Sales Latest Week to 2nd July 2023 vs YA).
“By their nature, illicit sales are difficult to monitor and while we welcome the government’s £3m investment in enforcement squads, we believe more should be done to tackle illicit products and the retailers who sell them,” adds Cook.
Over the last two years, the Office for National Statistics reports that the average price of a pack of cigarettes in the UK has increased by 26.6% – £14.45 in Q2 2023 v £11.41 in Q2 2021 (ONS). Smoking is a very expensive habit and recent Juul Labs research shows that the average smoker (based on 9 cigarettes per day) could save over £1400 annually by switching to JUUL.
“The priority must be to ensure the vaping industry is acting responsibly in order to help adult smokers transition away from cigarettes and reduce the harms from tobacco while combating underage use,” says Cook.
“We want to build a responsible vaping industry with tougher rules on packaging, flavours and promotions, to prevent these products getting into the hands of those who are underage. We look forward to seeing the Government set out further measures to tackle underage vaping following their recent call for evidence.”
Last month, Material Focus found that the number of disposable vapes thrown away has quadrupled from 1.3 million to five million per week in the past year, equivalent to eight per second.
JUUL devices are not single-use devices and can be reused and recharged, unlike disposable vapes, and are designed to be long lasting with each device coming with a 2-year warranty. If needed, the battery part of the device can be recycled with other electronic waste.
“We are committed to improving the sustainability of our products and, over the last 18 months have been operating a take-back scheme where users can return their used JUUL pods to us at no additional cost,” Cook continues. “We will continue to develop this initial pilot, which we hope to expand over time.”
The UK Government has recently completed a call for evidence into youth vaping. Disposables have been under political scrutiny and media interest intensifies, but views vary widely on the depth and scale of regulatory intervention required across the category.
“Quality products, focusing on sustainability/environmental impact, with responsible marketing and advertising practices, will be best placed in any future regulatory configuration,” adds Cook. “We await the Government’s response to the call for evidence with interest.”
Paul Wilkinson, Commercial Director, Eco-Vape, comments: “The trend is moving away from fanciful flavour names like “unicorn flavours” towards more straightforward and transparent labels, such as simple fruit names. Additionally, packaging designs are expected to become more subdued, with limitations on the use of vibrant colours, fonts, and imagery. For instance, colour usage on packaging might be restricted to only 40% of the design, mirroring regulatory trends in other markets.”
In the realm of NGPs, open pod systems are gaining prominence over closed systems, primarily due to market uncertainties around single-use products. Industry experts see open pods as a more sustainable option, offering adaptability in the face of ongoing regulatory changes. Notably, companies like Eco-Vape are launching new open pod systems that strike a balance between market demands and consumer preferences for flavours and experiences akin to disposable vapes.
“Tracking flavour trends in vaping is complex, with a constant demand for both traditional and innovative options,” adds Wilkinson. “Fruit flavours continue to be popular, but there’s also a significant demand for classic tobacco and menthol flavours.”
There’s a growing consumer preference for larger vaping devices as they offer better value for money. Addressing this trend, products like the Aspire R1 with a 10,000 puff capacity are being introduced as compliant alternatives to larger, often unregulated devices found on the black market.
Eco-Vape’s Bear Pro-Max flavours, featuring Zinwi concentrates from a renowned Chinese flavour house, are gaining popularity. These products are designed to replicate the flavour experience of disposable vapes, aligning with consumer expectations.
Eco-Vape is focusing on the Bear Pro-Max Range, offering disposable-like flavours in a compliant format. Manufactured in the UK, this range currently includes 25 flavours, with plans to expand further.
Eco-Vape’s recent UK launch of the Bear Pro-Max Range has been promising, with record-breaking uptake compared to previous product launches.
“Brands are advised to focus on products with designs that are future-proof, especially those that avoid appealing to younger audiences, due to the evolving regulatory environment,” says Wilkinson.
Eco-Vape is introducing in-store testing stations for the Bear Pro-Max Range, allowing customers to sample products before buying.
“Wholesalers are encouraged to allocate resources to promote new products effectively. This includes leveraging support from distribution channels, employing tailored marketing strategies, and utilising in-store promotions and pre-event marketing,” continues Wilkinson.
“Successful collaboration with retailers involves strong account management, understanding retailer needs, and their customer base, and providing customised support to maximise sales through this channel.”
Adrian Everett CEO, NEAFS, comments: “Disposable e-cigarettes have been under regulatory scrutiny in some regions, leading to concerns about potential bans. However, NEAFS stands ready to adapt. If disposables face stricter regulations, it will motivate the NGP industry to innovate further, focusing on developing eco-friendly and long-lasting alternatives to meet consumer demand.”
The vaping/NGP category is a massive market, valued at over $20 billion globally in 2021. The driving force behind this exponential growth is the increasing number of smokers seeking safer alternatives to traditional cigarettes and continuous innovation within the industry. NEAFS is a prominent player, offering a healthier and more enjoyable way to consume nicotine.
“NGPs offer a wide array of choices, catering to diverse preferences,” adds Everett. “Closed pod systems are known for their simplicity, while open systems provide greater customisation options. NEAFS takes pride in leading the heat-not-burn sub-category, offering a smoke-free and tobacco-free alternative.”
Flavour preferences in the NGP category are ever-evolving. Presently, consumers are gravitating towards natural and fruity flavours, seeking options that mimic the taste of tobacco without the harmful components. Classic flavours like tobacco and menthol still have a devoted following, and NEAFS is continually innovating to introduce new and exciting flavours.
“Consumers are increasingly prioritising transparency, sustainability, and product quality,” says Everett. “They want to know what’s in the products they use and are environmentally conscious. Additionally, online shopping and subscription models are gaining momentum, highlighting the importance of a robust online presence for retailers.”
NEAFS’ best-selling product is the heat-not-burn device, which has garnered significant popularity among those looking to transition away from traditional cigarettes. It offers a smoke-free and tobacco-free nicotine experience.
“For retailers and wholesalers, staying informed about changing regulations and consumer preferences is essential,” Everett continues. “Flexibility and adaptability in product offerings are key, along with responsible marketing and sales practices that align with evolving industry standards.”
In the coming year, NEAFS is rolling out new initiatives, including referral programs and loyalty programs designed to enhance the NEAFS experience for both consumers and retailers. These programmes aim to strengthen the brand’s relationships with its valued partners.
“Wholesalers should maintain diverse product portfolios, ensure efficient distribution, and stay attuned to market demands,” suggests Everett. “Flexibility and responsiveness are vital to achieving optimal sales performance.”
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