The global market for illicit vapes has ballooned to unprecedented levels, fuelled by tightening restrictions and outright bans in multiple countries, according to new analysis from Euromonitor.
Illicit electronic vape sales rose seven per cent last year to around 605 billion products – accounting for a staggering three-quarters of the global market. The research firm predicts a further 10 per cent jump this year.
Disposable vapes driving the rise
Single-use vapes are a major driver of the rise. The report found that 89 per cent of disposable vapes sold worldwide are illicit, which is equivalent to around 235 billion sticks.
Countries including the UK, France, India, Australia, Singapore and Thailand have pressed ahead with bans on disposable vapes, mostly for environmental and health reasons. But the measures appear to unintentionally be fuelling the underground trade, which is now worth an estimated $47 billion.
Erwin Henriquez, head of nicotine at Euromonitor said: “The main driver behind the growth of the illicit market is a combination of overly restrictive legal frameworks that create a marked disparity between compliant and non-compliant products, insufficient enforcement and a value gap that leads consumers to opt for illicit goods that are more convenient and affordable.”
The report warns that illicit vape sales are now on par with illicit cigarette sales. Around 71 per cent of illicit vape products are sold in regulated markets, making enforcement even more challenging.
Risks to vape users
The report warns risks to consumers of unregulated products are mounting. Studies have found that some illicit vapes contain higher-than-labelled nicotine levels, toxic metals including lead, nickel and chromium, and carcinogenic carbonyl substances.
Despite these concerns, many users cannot tell whether the products they buy are compliant.
“There remains limited awareness among consumers and retailers about illicit e-vapour products,” Euromonitor said. “Many are unable to distinguish between legal and illegal or non-compliant product offerings, particularly in terms of product safety, regulatory compliance and market legitimacy.”
The report highlights how online platforms are fuelling access, with e-commerce and social media making it simple for consumers to order non-compliant devices, often shipped across borders.
“Governments and industry stakeholders must work to increase awareness of the illicit trade, as has been done with illicit cigarettes,” Euromonitor said.
Illicit vape presence is running at more than 80 per cent in North America, Latin America, the Middle East, Africa and Asia Pacific. Western Europe remains the outlier, with lower presence but rising legislative pressure that could push users more towards illegal products.
Henriquez stressed the need for balance in regulation, saying: “Many consumers are drawn to the illicit market seeking affordability and control over their vaping experience,” he said. “It is essential to strike a balance in regulations to encourage the appropriate use of legal reduced-risk products.”
