The vaping category saw immense growth for the second consecutive year in the UK, as increasing numbers of smokers switch to alternative nicotine products. The market is now valued at £1.2 billion, with projections estimating it could reach £1.4 billion by 2026.
Soaring Demand Drives Category Expansion
Vaping product sales continue surging in traditional retail channels, indicating robust consumer demand that shows no signs of slowing. As per industry estimates, vapes currently account for 12.4% of total nicotine sales when compared to cigarettes and roll your own (RYO) tobacco.
With vaping’s exponential rise, retailers must ensure sufficient shelf space for devices and e-liquids to capture this growth. Stocking a diverse range spanning closed systems, open tank systems, and single-use options offers options for varying consumer preferences.
Disposables Lead the Charge
Disposables now represent over 80% of all vape sales, skyrocketing from £141 million in 2021 to £973 million in 2022. Major vaping company Imperial Tobacco recently entered this market with the launch of its Blu Bar disposable range.
However, open and closed pod system devices retain steady demand, holding 17% market share. Retailers should carry leading pod systems while monitoring up-and-coming devices to remain competitive.
Flavor Diversity Matches Consumer Interests
Mint persists as the second most sought-after vaping flavor but faces growing competition from fruit varieties. Disposables heavily feature sweet and fruit profiles, while over half of closed system e-liquids are classic tobacco, menthol and mint.
In response to flavor trends, Imperial Tobacco added Apple Ice, Mint Ice and Tropical Mix to its disposable Blu Bar lineup. Combined, these profiles accounted for almost 11% of vape sales in 2022 with expansion anticipated.
Guidance for Retailers
Frequently evaluating inventory against latest consumer preferences allows adjusting product assortments accordingly. Reserving space for trialing new items then adding top performers as permanent range extensions leverages data to drive sales.
Seeking customer feedback provides actionable insights. Increase stock or visibility for fast-turning products based on purchasing frequency and flavor popularity.
Sustainability and Safety Shape Industry
With disposable vapes facing stricter regulation in some areas, manufacturers may shift toward reusable and recyclable alternatives. NEAFS leads nicotine innovation with its eco-friendly heat-not-burn product line.
Regulators also aim to balance vaping’s harm reduction potential against preventing underage usage. Companies like JUUL prioritize manufacturing oversight and retailer responsibility to achieve stringent safety standards.
Transparency around ingredients and ethical production processes grows more pivotal as consumers demand accountability. Retailers staying abreast of policy updates and customer sentiment can readily adapt merchandise strategies.
Promising Outlook Powers Category Evolution
Valued globally at over $20 billion in 2021, next-generation nicotine maintains positive trajectory fueled by smokers pursuing less harmful options. Closed and open vaping systems cater to various preferences while heat-not-burn provides a smoke-free, tobacco-free experience.
Vaping manufacturers continually expand flavor profiles as tastes evolve, blending customer favorites with innovative varieties. Though classics still thrive, many favor naturally-inspired and fruit forward flavors.
Online shopping and subscription models gain adoption, heightening the need for omnichannel retail capabilities. Investing in seamless integration between brick-and-mortar stores and e-commerce maximizes flexibility.
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