Disposable Vapes: Threat and Opportunity

Delivery

This report comes in PPT.

Key Findings

Exponential growth fuelled by massive uptake from young adults

Ease of access, convenience, wide range of flavours and affordability of closed system single use products are driving sales growth for the category, which is particularly popular among young adults. Such has been the uptake that major multinational players BAT and PMI have launched their disposable brands and new and more innovative products from new and existing players are constantly released to provide a better consumption experience for closed system single use consumers.

Concerns around sustainability and appeal among youngsters threaten long-term growth

The media and consumer backlash over the environmental concern of disposable vapes and the perceived appeal that disposable vapes have for younger users is an issue for legislators and health campaigners advocating for tougher restrictions or a sales ban on closed system single use products.

Tougher regulation  set to reshape the category over 2022-2027

The regulatory burden on disposable vapes has remained lighter when compared to combustible tobacco products since their emergence back in 2020. Closer scrutiny on disposable vapes in the EU and the US over the forecast period is likely to lead to further restrictions on the commercialisation and promotion of these products and stricter regulations to reduce their environmental impact. These measures should resonate globally and be replicated in many markets across regions over the next decade.

Innovation to ensure sustainable long-term growth 

Increasing pressure from regulators on closed system single use players to avoid underage use and reduce the environmental impact of closed system single use products is bound to encourage manufacturers to develop more environmentally-friendly products and avoid marketing campaigns that associate disposable vapes with underage consumption.