FOCUS ON: Six things about tobacco, vaping and next-gen products

1. The disposable vape ban could be a reset for the category

2. Single use vapes made up 65% of vape sales at the start of 2025

3. Tobacco in independents and symbols was worth £6.1 billion last year, with ready made cigarettes accounting for 4.3 billion

4. Ultra Value has the fastest growing share of tobacco, making up 16.8% of the combined tobacco market

5. Nicotine pouches are now up 82% in volume

6. More legislation may be on the way…

1. The disposable vape ban could be a reset for the category

On June 1 2025, disposable vape sales are set to vanish in a puff of strawberry-flavoured smoke.

This marks the date it will finally be illegal for businesses to sell or supply, offer to sell or supply, or have in their possession for sale or supply all single-use or ‘disposable’ vapes.

Many forecourt operators like Top 50 Indie Park Garage Group have used the deadline as a chance to review the category, and feel prepared for what comes next.

”The ban hasn’t come as a surprise, we initially believed from announcement to implementation we would have six months and it’s probably been closer to eight months,” says its operations director Ian Cawley. ”I think within the sector it’s been well publicised, and everybody should be aware of the criteria from June 1.

Cawley adds: ”We moved prior to the announcement with partnering with our vape supplier and getting new plans drawn up, which we actioned in a phased approach and as of Easter we will see the final phase. This will then have us compliant post June 1.”

Initial concerns were that the business would lose halo purchases from less regular vape purchases, but he says instead customers are buying bigger puff devices and vaping more throughout the day. ”I think brands have been very proactive in changing the specs of these devices and I don’t see much change coming,” he says.

Guy White, managing director of Laurels Service Station in Horncastle, Lincolnshire, is also prepared for the disposable vape ban.

”I can see no issues going forward. We have been slowly clearing stock at discount on slower flavours, and I think it’s done us good to have a clear out and make room for new products.”

He adds: “The issue is for the manufacturers who are all running around to make products legally compliant. We are working closely with suppliers and listening.”

Whatever happens next, according to Philip Morris Limited’s research, a portfolio approach could be crucial to keeping hold of vape spend.

“Independent research conducted by KAM on behalf of Philip Morris Limited highlights that the opportunity is to be found in appealing to variety,” says John Rennie, director of commercial operations at Philip Morris Limited (PML) in the UK and Ireland.

“Findings show that 68% of independent retailers believe that success will hinge on offering a varied product portfolio – one that includes a full range of e-cigarettes, heat-not-burn products, and oral nicotine pouches, rather than relying on a single category as they may have done so previously with disposables.”

 

 

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2. Single use vapes made up 65% of vape sales at the start of 2025

But for many giving up single-use vapes is going to be tough – especially as they still account for the lion’s share of vape sales.

“Demand for these more traditional vapour products remains strong despite these pending changes,” says Susanna De Iesu, BAT UK’s commercial director UK&I.

“According to data from Nielsen, there have been over 18 million single-use vapes sold across all brands since the start of 2025, which makes up 65% of all vapour sales in that time.”

“In the short term, single-use vapes are expected to remain the dominant product category until the ban takes effect in June,” adds Angelo Yang, associate general manager, UK at Elf Bar.

“During this period, reusable devices, particularly prefilled pods, are anticipated to gain further traction and growth to then accelerate in the second half of the year. The shift towards reusable alternatives presents a significant opportunity for retailers who adapt early to upcoming changes by diversifying their product offerings with alternatives to single-use vapes.”

Elf Bar research suggests that adults who use single-use products will mainly be looking to switch to reusable options. That’s why it’s been busy launching reusable versions of its original and Lost Mary products. Plus, it’s also put its marketing heft behind high-puff lines.

Fuzail Patel, whose family runs four forecourts in the north of England, believes that the ban on disposable vapes “will definitely have an impact”, with this format giving his business 50% margin, and currently accounting for over 20% of its vaping sales. 

“Right now we are looking at alternatives like refillable and pod-based vapes to keep up with demand. We’re keeping a close eye on things and adjusting our range to make sure we’re ready for the changes,” he says.

Ian Cawley at Park Garage Group is also betting on Pod systems being dominant. “I believe the pod system will essentially become a disposable to the vast number of consumers.

”I also think big puff will play a massive role due to the perceived financial benefits. They give more puffs for less money, but if your vape levels increase this isn’t as cost effective. Also, oral nicotine is massively on the rise within our stores I think this will continue to grow.”

And forecourt operator Guy Laurels says his best-selling disposable vape range – SKE Crystal on sale for £5.99 or two for £10 – has just been replaced with a legally compliant alternative. “So we have no worries, we will clear all old stock and replace with new..”

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3. Tobacco in independents and symbols was worth £6.1 billion last year, with ready made cigarettes accounting for 4.3 billion 

For years now the UK government has been trying to snuff out smoking for good. Which has translated to far fewer smokes going through the tills.

Ian Cawley says that in the past 12 months in partiuclar Park Garage Group has seen a “massive decline” in tobacco sales of around 10%. “In monetary terms this is a very large number, albeit from a low margin product.”

He adds: ”Previously, the rise of vape has protected this decline, but with the year-on-year decline on tobacco it’s hard for this number to be saved each year by vape.”

Yet as long as cigarettes remain legal, terminally addicted older smokers will stick with them until the last gasp. In fact, 70% of shoppers who purchase tobacco say it’s their main reason for visiting a store [Lumina intelligence convenience tracking programme, L52W to w/e 15/09/24].

“Nicotine remains an important category for convenience retailers to get right, not only for the revenue it brings into their till, but as a driver of footfall and repeat business from regular customers and the associated basket spend which goes with that,” says Prianka Jhingan, head of marketing at Scandinavian Tobacco Group (STG) UK.

“While traditional tobacco sales have been in decline for some time now, what’s left is still huge and of course many consumers have been transitioning over to next gen products such as vapes or nicotine pouches, which have also become an important part of the mix.”

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4. Ultra value has the fastest growing share of tobacco, making up 16.8% of the combined tobacco market 

It’s no surprise that as the price of cigs spikes, cost-of-living-crushed consumers are choosing the cheapest options from the gantry.

“As consumer preferences shift towards more cost-effective options, the demand for ultra value tobacco brands continues to rise,” says Mark McGuinness, marketing director at JTI UK.

“This segment is the fastest-growing category in terms of market share. By prioritising these value-driven offerings, retailers can not only meet the needs of budget-conscious smokers but also tap into a high-growth sector – ensuring they remain profitable in a competitive market.”

To support the segment JTI dropped the price of Mayfair Gold by 80p to £12.50 for a pack of 20 in January.

However, though price is important, smokers are still keen on brands, says Ian Cawley from Park Garage Group.

“Ultra value continues to grow, but our bestselling line is still B&H blue,” says Cawley.

Despite recent price rises roll-you-own (RYO) is still considered a thrifty option for cig-smokers.

“We’ve seen the share of the market for value RYO products increase by nearly two percentage points year on year, making it the fastest-growing segment, now accounting for more than a quarter (24%) of all RYO sales ^[ITUK Data October 2024],” says Andrew Malm, UK market manager for Imperial Brands.

Imperial now has a 40g pouch size for Golden Virginia Original, sitting between established 30g and 50g packs, as another response to price inflation.

“The new size bridges the price gap, offering a more manageable cost when purchasing an individual pouch,” says Malm.

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5. Nicotine pouches are now up 82% in volume

Outside of vapes, customers still fiending for nicotine are increasingly hitting the pouches.

“Our latest data shows the category is worth over £131m in annual retail sales and this figure doesn’t include sales taking place online,” says STG’s Jhingan.

“This reflects year on year growth of 82% in volume terms, offering clear evidence to its growing popularity and consumer demand: [IRI Marketplace, Value and Volume sales, Time Period: w/e 22-12-24].”

Ian Cawley says pouches have “massively grown” at Park Garage Group. “It’s a sector many suppliers are looking for the next big thing. DSL has brought us some great innovation within this area over the last 12 months with different brands, as previously it’s been major tobacco suppliers who had the lion’s share.”

Meanwhile, ZYN is proving one of the category’s most prominent brands – not least because it’s increasingly gaining traction on TikTok.

“This trend [for pouches] is expected to continue as awareness among adult smokers and legal-aged nicotine users increases,” says PML’s Rennie.

“For ZYN, the world’s number one nicotine pouch brand, we’ve observed an impressive 161% increase in volumes this year compared to the previous year.

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6. More legislation may be on the way…

The June first ban might be the latest legislation to upend the category. But it definitely won’t be the last. Already, a ban on both vape flavours and displays has been mooted. In response, the industry is already on the offensive.

“Research from Elf Bar reveals that if overly restrictive regulations are imposed on flavours, packaging and displays in addition to the single-use ban, around two million UK vapers (35%) could resort to illegal single-use vapes, return to smoking, or increase their tobacco consumption,” says Elf Bar’s Yang.

Elsewhere, JTI’s McGuinness is weighing up the costs of a “generational ban” for tobacco.

“A recent survey found that with 78% of retailers feel like a generational ban would lead to more illicit tobacco in their local area,” he says.

“This is having serious ramifications on the incomes of honest retailers, not only as it impacts their legitimate tobacco sales, but also as they miss out on wider basket spend with shoppers visiting other stores.

“We also know that verbal or physical abuse against shop workers is sadly on the rise in the UK, with age verification a key reason behind this. If the government presses ahead with a proposed generational ban, retailers will be at greater risk of abuse in the years ahead, impacting on their physical and mental health.”

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