So, we’re well into 2018 now and vaping is still very much alive and kicking. So much for the many that said vaping was just a fad. In fact, vaping is growing in virtually all key areas of ‘concern’. Its popularity is increasing. People are spending more money on their e cigarettes. Open systems are the most popular but closed tank systems aren’t that far behind either (and will likely grow significantly through 2021).
Total Value in the UK
It’s already estimated that the value of the vaping industry in the UK is £1 billion. What’s really crazy though? The UK directly benefits financially from people who have switched to vaping, saving people roughly £111 billion.
Here is where we couldn’t be happier. While the current value of the vaping market in the UK is notable, its success lies in its future. By 2021, the total value is expected to be £4.6 billion. A large part of this growth will absolutely negatively affect tobacco sales. This can already be seen in the current statistics. As of 2018, there are roughly 7.6 million smokers in the UK – still a large number, but down significantly from the 12 million smokers from several years ago. Additionally, there are currently 2.9 million vapers in the UK, up from roughly 2.5 million last year. By 2021, if the UK hits its expected target of £4.6 billion in revenue, it’s very likely we see well over 4 million vapers in the UK alone, with millions more who likely will have completely stopped smoking tobacco and also stopped vaping.
Impact on Tobacco
Remember all the talk about how many people have actually quit smoking due to vaping? Yes, that was always a heated debate between the anti-vaping and pro-vaping communities. Fortunately, this debate has been settled and we now have the correct data. A whopping 1.5 million vapers have completely stopped smoking cigarettes. Furthermore, as a result of vaping, 5 billion cigarettes were not smoked. On a side note: if you’re an investor in Big Tobacco stocks, especially ones who don’t own a vaping company, you may want to reconsider your trading position.
UK Vaping Market Overview
As a result of regulations and the TPD, vaping companies have had to follow a strict set of guidelines, ultimately leading to a need to register their products with the MHRA. Since these laws went into effect, over 40,000 products have been registered. So, there goes the fear that vaping has been killed…because it hasn’t. Additionally, there are now over 2,000 vape shops in the UK, as roughly 80% of UK vaping purchases are done in store. In fact, this isn’t much of a surprised as we have covered in the past. Look for this growth to continue well into the future.
Vaping is alive and well! We’re doing what we all set out to do from the beginning – kick tobacco’s behind. From our vantage point the end of tobacco is near.
Photo Credit: Blacknote/CC BY 2.0