Salute to UKVIA John Dunne Sharing UK Vape Market | Vape Manufacturer

Today we obtained a sharing note of UKVIA John Dunne‘s UK vape from the internet.
Our Dank Smoke marketing department has organized it and shared it with everyone here.
With the rapid development of vapes. Many countries are constantly establishing and modifying regulations and laws for vape.
This poses great challenges for China vape factory and vape manufacturer, as well as a business opportunity also.
So how should today’s vape brand respond to this constantly changing market? Let’s first understand the current situation of vape in the UK, and then welcome everyone to send messages for discussion.

First: Overview of the UK Vape Market

1. Market size data.
Overall market size: £ 896m in 2019 → expected 1709m in 2025, expected 1425m in 2026.
The scale of disposable vapes: £ 82m in 2019 → £ 177m in 2022, with a trend of change following policy adjustments.
2. Product structure transformation.
Core trend: shifting from disposable vapes to pre filled oil and bullet changing equipment.
3. User scale and structure (2024/2025 ONS data).
Traditional cigarettes: 10.6% (5.3 million people) of the population aged 18 and above smoke, the lowest since 2011.
Vapes: 10% of users aged 16 and above (5.4 million people), surpassing cigarette users for the first time.
Vape usage frequency: 6.7% daily (5.9% in 2023), 3.3% occasional use.
Smoking cessation rate: The proportion of people aged 16 and above who quit smoking has increased to 74.2% (70.9% in 2023).

Second: Core policy regulations in the UK (Tobacco and Vape Act)

1. Core objectives of the bill.
Positioning: The most important health legislation in this parliament, focusing on 7 key issues.
2. Specific policy terms.
Generational smoking ban: Prohibition of selling tobacco to individuals born after January 1, 2009.
Age restriction: It is prohibited to sell any electronic cigarette products to minors under the age of 18.
Advertising Control: Prohibition of vape advertising/sponsorship. Exemption proposal for professional vape retailers pending review.
Packaging and Products: Restricting flavors/ingredients/emissions. Uniform/solid color packaging, sales point display control.
No Smoking Area: Vapes are included in the management of no smoking areas.
Penalty escalation: Increase relevant fines for violations, confiscate products of violating enterprises, and impose imprisonment on serious offenders.
3. Public attitude.
75% support the ‘smoke-free 2030’ goal, and 42% of smokers support this goal.
50% support raising the purchase age, 75% support prohibiting the use of candy/cartoon packaging names.
74% support banning point of sale advertising promotions.

Third: Vaping Products Duty for vapes in the UK

1. Core Taxation Rules.
Effective date: October 1, 2026.
Tax rate standard: £ 2.20 per 10ml e-liquid+value-added tax (including nicotine free products).
Expected revenue: Expected to raise £ 525 million for public services.
2. Corporate compliance requirements.
Local manufacturers: need to apply for VPD and VDS Scheme approval.
Overseas manufacturers: need to designate a UK representative to handle VDS application on their behalf.
Importer: New taxes need to be paid, and if representing overseas, VPD and VDS registration is required.
3. Enforcement measures.
Add 300+industry tax inspectors.
Retailers fined up to £ 10000 for selling counterfeit goods, with the option to confiscate all categories of products from the company.

Fouth: UK Industry Policy Threats and Association Actions

1. Policy threats.
Core logic: Policies will be adjusted according to the circulation of illegal products, and if supervision is insufficient, it will be further intensified.
Industry response principle: Compliance first, unified implementation of new regulations.
2. UKVIA (UK Vape Industry Association) Action.
Policy communication: Update briefings to legislators and maintain ongoing communication with the Ministry of Health/HMRC.
Parliamentary interaction: Collaborate with cross party vape groups, hold parliamentary industry briefings.
Public opinion promotion: Promoting the harm reduction value of vapes in parliamentary debates.

Fifth: Relevant situation of the EU electronic cigarette industry

1. Market size
23 out of 27 countries impose taxes on e-liquid, with an average tax rate of € 0.25/ml
2. Progress on core policies
2024-2028 policy timeline: TPD3 pending review, TED discussion ongoing, battery regulations to be implemented in 2027
Key achievement: Parliament rejects proposals such as “equal regulation of vapes and cigarettes” and “ban of vapes in outdoor work areas”
3. Impact of Consumption Tax
Tax rate<€ 0.20/ml: Annual growth rate of 20%
Tax rate>€ 0.35/ml: The market will shrink sharply, resulting in extreme negative impacts