UK vaping reforms threaten £330m retailer losses amid growing illegal market

The UK government's impact assessment for proposed plain‑packaging rules on vaping products estimates that retailers, wholesalers and manufacturers could lose more than £330 million, with officials noting a lack of clear evidence of public‑health benefit. At the same time, the illegal vape trade remains sizable: over 1.26 million illicit vapes were seized in 2025, and more than 7.2 million illegal cigarettes were confiscated. Despite the single‑use vape ban introduced on 1 June 2025, disposable vapes continue to be found, averaging about 8 000 seizures per week.

Trading Standards inspections involving vaping, tobacco and nicotine products fell 5.8% in 2025, dropping from 9 431 to 8 881 inspections, and the proportion of inspections resulting in fines also declined. The new Vaping Products Duty adds £2.20 in tax per 10 ml of e‑liquid, potentially raising retail prices by roughly £2.64 after VAT, which could further advantage illegal sellers over legitimate products.