A Look Into the Growing Vaping Industry
Written by Oliver Norman, Content Marketing Manager, EDGE Vaping
Vaping emerged as an innovative technology in 2010 and gained global recognition by 2017. Although it initially experienced slow adoption rates, vaping is now regarded as a valuable resource for adult smokers seeking alternatives to nicotine.
Numerous individuals transition from smoking to vaping, while others search for nicotine substitutes. Public Health England has declared that vaping is 95% less harmful than smoking, making it an appropriate choice for many.
Throughout the years, consumers have embraced vaping for various reasons, and its significance cannot be overstated. Research shows that approximately 8.3% or 4.3 million people in the UK population use vaping devices.
The industry has witnessed rapid and lucrative growth, but it has also encountered challenges. As with any emerging technology, health and safety concerns have been raised, along with doubts about vaping as a viable alternative to cigarettes. Nevertheless, these concerns are being addressed, and there is mounting evidence that using vape devices can minimise the harm caused by smoking.
The story so far
In 2022, disposable vapes quickly gained popularity and captured 90% of the market share in terms of unit sales. This led to a decline in traditional vaping product sales, but the trend reversed in December 2022. Disposable vapes appealed to the general public for their convenience and ease of use, featuring pre-filled designs and a range of flavours. However, unregulated versions entered the market, raising safety concerns.
The cost of living crisis significantly affected the vaping sector’s development in 2022. Many consumers could only afford essentials, forcing them to abandon vaping products altogether. Discounters selling low-cost disposable vapes performed best in the second half of 2022, although average consumer spending on these products also declined.
In 2023, the vaping industry is expected to grow, with bottled e-liquids and traditional vaping devices and pods becoming more popular. Brand loyalty is at an all-time low, with price and product type being the primary factors driving sales. E-liquid pods are the fastest-growing segment this year, offering a balance of affordability and convenience that appeals to most customers.
Retailers should take note that disposable vapes are losing popularity, while pods are becoming increasingly favoured. Supplying a broad range of 10ml nic salt fruit flavours alongside pods is a sure way to boost profits in 2023.
The decline of disposable vapes
The disposable vaping scandals that have surfaced since 2021 are now affecting customer behaviour. More consumers are now inclined to switch to a reusable pod system if it offers similar convenience. Innovative brands, including non-disposable products from formerly disposable-only manufacturers, have contributed to the growth of pod systems. These brands provide a sense of familiarity, making it easier for customers to forgo the convenience of disposables in favour of something more durable and, ultimately, more cost-effective.
Confidence in disposable vapes has waned due to their adverse environmental impact, issues with youth access, and the sale of unregulated products. Research indicates that 7% of 11-17 year-olds currently use disposable vapes, and children can obtain devices from various sources, including large supermarkets and smaller businesses.
The vaping landscape may undergo changes in 2023/24 due to several factors, such as legislative changes in response to the widespread use of disposable vapes among young people and shifts in consumer behaviour amid the cost-of-living crisis.
What does the future hold?
Despite challenges like regulatory changes, public perception and consumer behaviour, the vaping industry’s future remains promising. The increasing popularity of e-liquid pods and reusable devices indicates that sustainability and convenience are becoming more important factors for consumers when selecting vaping products.
Furthermore, the industry must address concerns regarding underage access and the environmental impact of disposable vapes. The growing popularity of non-disposable brands may signal a shift towards more responsible and sustainable vaping practices.
As the industry continues to expand and evolve, it is crucial to educate consumers about the advantages and risks associated with vaping, as well as promote responsible usage. Retailers can play a vital part in this effort by offering high-quality, regulated products, supplying accurate information, and ensuring that their sales practices are ethical and lawful.
The vaping industry has experienced significant growth and transformations in recent years, and it is set to continue evolving in the future. As consumers become more knowledgeable and discerning in their choices, the industry must adapt to meet their changing needs and preferences.