The UK is arguably the most vapour-friendly market in the world. Public Health England, the executive agency of the Department of Health and Social Care, has been an active proponent of switching from combustible cigarettes to vapour products.
The UK Government announced plans to create a new tax category for heated tobacco. At the end of the review period, products were assessed on a case-by-case basis which is seen as inefficient in the long term.
Non cig-a-like closed system is predicted to record strong growth in the future. These products offer easy to use pod systems, removing the complexity of open vaping devices, and are very discrete due to their small size.
Local subsidiaries of global players British American Tobacco, Japan Tobacco and Imperial Brands are gaining share in multiple vapour categories, as their strategic focus is quickly shifting to next generation products. Acquisitions have also played an important role in this growth with further action likely over the forecast period.
A recent study conducted by YouGov on behalf of Action on Smoking and Health, has established the three most popular flavours in the UK; fruit (29%), menthol and tobacco (25% each). Prior to the revised EUTPD, the e-liquids assortment was extremely wide, offering exotic flavours, although the new rules place a significantly higher cost for new entrants.
Vape shops grew significantly over the review period due to their responsiveness and expertise. Many smokers that are willing to switch want to try vapour products first, which is not possible in conventional store-based channels.
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This report originates from Passport, our Smokeless Tobacco and Vapour Products research and analysis database.
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