Action needed to curb illicit vape market

FOR IMMEDIATE RELEASE

Action Needed On “Huge” Illicit Vape Market, Researchers Say

But Heavy Regulation Can Make The Problem Worse

Urgent action is needed to tackle the illicit e-cigarette market around the world, industry analysts at Tamarind Intelligence have warned.

But simply imposing even tighter rules on the whole vape sector is unlikely to be the solution, they say.

Research by Tamarind into the illicit vape trade has shown that it affects not only manufacturers, distributors and retailers, but consumers too. In many places, illicit products – those that break the law in some way – make up a significant part of the market.

Illicit products may not comply with rules on areas such as nicotine strength, ingredients, or packaging. And because tax will generally not be paid on them, they can be cheaper than legitimate products – undermining the efforts of companies which do comply with the law.

“While it’s difficult to exactly pin down the scale of the illicit market, it’s certainly huge in many countries – more than half of total vape sales in some places,” said Barnaby Page, editorial director of Tamarind Intelligence.

“Our research draws on a range of indicators, including disparities in import statistics, to highlight this. And we’re not just talking about products that are smuggled,” Page added. “That’s the most extreme example of illicit trade, but there are many other ways in which vapes can be illicit.”

Heavier regulation can make the problem worse, he added. “For example, banning online retail or increasing taxes simply tends to encourage the illegal market, and prevents consumers from accessing legal products which do comply with all the rules designed to protect them,” Page said.

To highlight the issue of illegal vapes and their impact, Tamarind has produced a free podcast and is now preparing to publish a major report.

ENDS

About us

ECigIntelligence is the leading provider of detailed global market and regulatory analysis, legal tracking, and quantitative data for the e-cigarette sector worldwide.

We provide our clients with the tools to navigate this fast-moving sector, tailor their business strategy, optimise resources, and make informed decisions. Our global perspective on the international vape sector offers valuable data such as market trends, key players, regulatory obligations and industry dynamics.

It is published by Tamarind Intelligence, which also produces CannIntelligence and TobaccoIntelligence.

Photo: https: Olenka Bohovyk

Barnaby Page

Editorial director

Before joining ECigIntelligence in early 2014 as one of its first employees, Barnaby had a 30-year career as a reporter and editor for newspapers, magazines and online services, working in Canada, the US and the Middle East as well as his current British location. He has edited publications covering fields including technology and the advertising industry, and was launch editor of the first large daily online news service in the British regional media. Barnaby also writes on classical music and film for a number of publications. Barnaby manages the editorial and reporting teams and works closely with the analyst teams, to ensure that all content meets high standards of quality and relevance. He also writes for the site occasionally, mostly on science-related issues, and is a member of the Association of British Science Writers.