The UK’s vaping industry has seen exceptional growth, achieved record-breaking sales and become a major market player in recent years. Unprecedented success triggered a shift in consumer habits and preferences. The latest data reveals an astounding surge in vaping sales, reflecting the increasing popularity of e-cigarettes and related products.
A Booming Start
UK Vaping Industry Association (UKVIA) has elucidated commisioned the report on the substantial economic value of the country’s vaping sector. Cebr exhibits the sector’s remarkable expansion, employment generation, tax contributions, and NHS cost savings, highlighting its impressive growth.
The vaping sector is now a multi-billion-pound industry, supporting 18,000 full-time equivalent workers and contributing significant government revenue. The economic impact of the industry extends beyond direct contributions, encompassing supply chains and increased spending facilitated by the industry.
Between 2017 and 2021, the turnover of the UK vaping sector experienced impressive growth, increasing by £251 million, or 23.4%. In 2021 alone, the industry’s turnover reached £1.325 billion. The vaping sector’s economic impact exceeded £2.8 billion, including supply chain support and employee spending.
In 2021, the vaping sector employed 17,700 individuals directly and indirectly, encompassing those in the supply chain. The vaping industry had a significant impact on the UK’s tax revenue, contributing £310 million in 2021.
One of the significant socio-economic benefits highlighted in the report is the positive impact of vaping on public health. In 2019, the NHS saved £322 million as adult smokers transitioned to vaping.
If half of UK smokers switched to vaping, the healthcare system would save a lot more money.
The report shows that smokers switching to vaping can save money on healthcare and boost productivity. In 2019, the transition to vaping resulted in an estimated economic gain of £1.3 billion. This figure is projected to rise to £3.33 billion if 50% of remaining UK smokers were to adopt vaping.
A Disruptive Sector Transforming Public Health and the Economy
Owen Good, Head of Economic Advisory at Cebr, emphasised the vaping industry’s success as a rapidly growing disruptive sector. Vaping helped businesses, workers, and the NHS save money as smokers embraced it to quit. Its impact on public health and the economy is noteworthy.
John Dunne, Director General of the UKVIA, hails the vaping industry’s rapid growth, now among the UK economy’s fastest-growing sectors. It evolved from a niche market into a major economic force, thanks to its rising popularity. He underscored the positive impact on employment, wealth generation, tax revenue, and the NHS’s annual savings of over £300 million.
Dunne acknowledged the instrumental role of specialist vape retailers and manufacturers in propelling the industry’s success. He emphasised the significance of vaping as a force for harm reduction, highlighting its potential to promote healthier alternatives. The author recognised vaping’s growing value as a commodity, benefiting the thriving UK economy. Further, he highlighted the industry’s impact on the economy and individuals’ health and well-being.
Growing Revenue and Market Reach Projections from 2023 to 2027
The UK’s e-cigarette revenue is expected to keep growing from 2023 to 2027, with a $0.4 billion increase (+10.28%), mainly due to more people using e-cigarettes. This upward trend suggests that the market will reach a new peak in 2027, with estimated revenue of $4.27 billion. It is worth noting that the e-cigarette segment of the tobacco products market in the UK has seen continuous revenue growth in recent years.
The report analyzes the UK e-cigarette market, including market size, forecast, trends, growth drivers, challenges, and vendor analysis. Approximately 25 vendors operating in the market are covered in the research, offering insights into their strategies, product portfolios, and competitive positioning.
Finally, the record-breaking sales achieved by the UK vaping industry for years are a testament to its rapid growth and enduring popularity. As the market continues to evolve, industry players are optimistic about the future and the role vaping will play in shaping the habits of consumers seeking alternative nicotine delivery systems.