The vaping category has seen huge growth within the convenience channel but navigating regulatory interventions will be crucial in the next period.
By Elena Dimama
Vaping is still a key category for independent retailers with innovation still coming through, despite negative publicity and the perils of fresh regulation.
In Scotland, vape products account for more than 14.8% of value sales of Tobacco products and are seeing a huge +84.6% year-on-year growth in September 2023 compared to -11.33% for Cigarettes and -11.35% for Hand Rolling Tobacco, according to TWC.
The category in the UK overall is worth around £1.2bn and is expected to reach £1.4bn in the next three years, according to ECIntelligence.
Single-use switch
The disposables category is worth 83% of all vape sales, according to ITUK, having seen a whopping increase from £141m in 2021 to £973m in 2022.
Closed pod systems and basic open systems still remain popular choices, but stocking a range of disposable products in trendy flavours could help retailers capitalise on the trend.
“Retailers can do simple things to drive sales such as promoting vaping products or offers in and around their stores, for example using PoS to drive visibility,” Tom Gully, Head of Consumer Marketing UK & Ireland at Imperial Tobacco, notes. “This can also help retailers to engage shoppers in discussion about their nicotine needs.”
Flavour diversity is the cornerstone of the vaping trend’s popularity, with Mint remaining the second-most-popular flavour in pod systems, according to Gully, along with growth in fruity profiles, such as Strawberry and Blueberry. In fact, Blueberry is the top-selling disposable vape flavour, according to ITUK.
Richard Cook, Director of National Accounts, Juul Labs UK, explains: “Within flavours, disposables over index in the fruit and sweet flavour segments, with over 95% of sales coming from these profiles while 56% of closed system refills comprise more traditional flavours of Tobacco, Menthol and Mint.”
Regulatory woes
In the beginning of October, the UK’s Prime Minister unveiled plans to introduce a new law to stop children who turn 14 in 2023 or younger from ever legally being sold cigarettes, in a bid to create what he called the first ‘smokefree generation’.
The rise in vaping among children has also been a concerning matter for the PM, who at the same time announced a public consultation seeking views on plans to crack down on youth vaping by reducing the appeal, affordability and availability of vapes to children.
In response to the consultation, the UK Vaping Industry Association (UKVIA) said it welcomed the move, noting that some of its own ideas were raised in the consultation, including higher on-the-spot fines for retailers who sell vapes to children.
UKVIA Director General John Dunn said: “While we agree with the Government that we need to protect our children from vaping, we need to also avoid discouraging smokers from quitting.
“More restrictive legislation, such as banning vape products would be likely to lead to a dangerous growth in an unregulated black market, as seen in other countries like Australia.”
The Association of Convenience Stores Chief Executive James Lowman noted: “The government must consider all of the possible long-term challenges for colleagues and retailers at the front line of implementing a generational ban on the sale of tobacco.
“It’s clear that something needs to be done to reduce the impact that these products have on the environment, and these products should never be sold to or used by children.”
