The UK Government confirmed in the King’s Speech that they are still planning to implement a ban on disposable vapes, raising concerns about the unintentional impact this could have not only on current vapers and on smoking rates, but also on the UK economy.
Vaping industry generates £2.8 billion annually
A report published by the Centre for Economics and Business Research (Cebr) highlights that over the past ten years the vaping sector has grown into a multi-million-pound industry, making a significant impact on the economy and providing employment opportunities across various sectors.
The report reveals that in 2021 alone, the vaping industry contributed nearly £1.4 billion in direct turnover, and when you consider additional economical impacts this doubles to £2.8 billion. When you factor in that the industry also generated around £310 million in tax revenue in 2021, it is clear to see that it contributes meaningfully to the UK economy.
Additionally, the vaping industry currently offers approximately 18,000 full-time equivalent jobs, in manufacturing, distribution, retail, and other related sectors. In a climate where job stability and the cost of living is a struggle for many, can we really afford for our economy and job market to take such a hit?
Andrej Kuttruf, CEO of Evapo, voiced his concerns, saying:
"In light of the proposed disposable vape ban set for April 2025, we face a critical juncture for the vaping industry and the UK economy. Our analysis, supported by the Centre for Economics and Business Research, indicates that bans could jeopardise £2.8 billion in economic contributions and 18,000 jobs.
"The vaping sector has evolved into a significant economic pillar, supporting thousands of jobs and generating substantial tax revenue. Removing disposable vapes from the market could inadvertently hinder smokers' efforts to quit, escalate NHS costs, and drive consumers towards unsafe, illicit products. We urge policymakers to consider these economic and health ramifications carefully."
Disposable ban could increase NHS burden
Smoking already costs the NHS around £1.9b annually, and a ban on disposable vapes could drive many vapers back to smoking, further increasing this burden.
Disposable vapes pose a convenient, accessible, and affordable way to make the transition from smoking to vaping. Many will start off using disposables vapes as a way to test how vaping could work for them, and will usually then move on to a reusable vape kit within around 12 weeks.
The UK has previously been applauded for the way we have embraced vaping as a crucial tool in smoking cessation, with many healthcare authorities along with the NHS and Government endorsing it as an effective stop smoking aid. This has helped contribute to smoking rates in the UK hitting their lowest ever, and we have even seen the birth of the Government swap to stop scheme which provides smokers with a free vape kit to help them transition to a less harmful alternative.
The fear is that removing disposable vapes as an option could result in some current vapers reverting back to traditional cigarettes, and also prevent smokers from making the switch to vaping, who may otherwise have gone on to become ex-smokers. This could potentially lead to an increase in smoking-related illness which will accrue further healthcare costs and put increased pressure on our already struggling healthcare services.
Additionally, should a ban lead to a surge in illicit products, these unregulated and potentially unsafe vapes could further add to this burden.
Vape bans could give illicit market a £645 million boost
The Government’s current plan is for a ban on disposable vapes to come into effect on 1 April 2025. The rational behind the ban is to attempt to tackle underage vaping and to minimise the impact that vaping has on the environment through single-use products. While it is extremely important that both of these issues are addressed, it is also crucial that the impact that such bans could have on adult vapers, smokers, and the economy, are taken into consideration.
Many fear that implementing a ban on disposable vapes will actually lead to a boom in the illicit market, with The Association of Convenience Stores (ASC) estimating that it could potentially boost illicit sales by £645 million, effectively taking this money away from the economy and into the pockets of criminals.
This means that rather than purchasing regulated, compliant vaping products from legal and reputable retailers, consumers could instead be sold unregulated and potentially dangerous illicit products by illegal traders. These illicit vapes often have not been subject to the appropriate testing and do not meet safety standards, which could pose a health risk to those who may choose to turn to the illicit market to purchase banned products.
These fears are certainly not unwarranted, as we have seen many examples from other countries who have implemented similar bans and subsequently seen significant rises in the illicit vape market.
The consequences of vape bans around the world
It is an unfortunate fact that where there are illegal or banned products, there will always be an illicit market for them. This has been highlighted across the globe as similar vape bans have led to a flood of illicit products illegally supplying vaping products that users can no longer legally acquire.
Countries like Australia and South Africa have experienced an immediate upsurge in illicit vape sales following the introduction of bans on products. In fact, one Daily Mail reporter looked into the illicit market for disposable vapes in Australia and discovered that, even though single-use vapes have never actually been legal in Australia, they are easily accessible in many high street stores.
The main consequences seem to have been that the price of disposables is high due to the added risk of importing and selling them, and that the businesses willing to sell these illicit products generally do not have much regard for age verification, as they are already breaking the law. Shockingly, it has been revealed that over 90% of the vapes being sold in Australia are from the illicit market.
Another example is seen in Denmark, where a vape flavour ban has been relatively unsuccessful due to the accessibility of banned products through the illicit market. 93% of vapers in Denmark stated that it is easy to find and purchase banned flavours, and the illicit market is thriving.
We are actively lobbying the Government to ensure that any regulations or vape bans introduced are based on balanced, well-considered facts and are subject to the appropriate consultation. We hope to be able to work with officials and policy-makers to share our experience and expertise within the industry, and ensure that a resolution which considers both the need to protect young people and the need to provide adult smokers and vapers with an effective and reliable alternative to cigarettes.
At a glance
- In 2021 the vaping industry contributed £2.8 billion to the UK economy, including £310 million in tax revenue, and it currently offers full-time equivalent employment to 18,000 people
- The disposable vape ban, expected to implemented on 1 April 2025, could have significant negative impacts on the UK economy, employment, and public health
- Estimates suggest a disposable vape ban could boost the illicit vape market by up to £645 million, flooding the market with unregulated and potentially harmful products
Sources
gov.uk 17/07/2024
ukvia.co.uk 09/2022
dailymail.co.uk 09/01/2024
tholosfoundation.org 2023
worldvapersalliance.com 27/06/2024
