How Has Vaping Impacted the Cigarette Industry? – NZOVape

How Has Vaping Impacted the Cigarette Industry?

by NZOVape Admin on May 13, 2021

Over the past decade, vaping has massively grown in popularity in the UK. E-cigarettes have become an invaluable tool for those trying to quit smoking, and the vaping industry has continued to develop innovative ways of making the process of quitting easier.

Despite concerns, research has proven that vaping is a better option than smoking, with Public Health England calling vapes 95% safer than cigarettes.

With more people vaping, the number of smokers in the UK is naturally decreasing. This is cause for concern for the tobacco industry and for those who sell cigarettes.

We take a look at how vaping has impacted the cigarette industry.

How Many People Now Vape in the UK?

As either a step on the journey to quitting or a safer substitute, the number of vapers in the UK is increasing, with around 3.6 million people recorded as vapers in 2020. This is an increase of 400% since 2012.

How Much Is the Vaping Industry Worth?

As of 2020, the estimated worth of the vaping industry in the UK is around £2 billion. This is gained through a combination of specialist high street vape shops and online retailers.

How Is the Tobacco Industry Impacted?

The tobacco industry has started to take a hit from the growth of the vaping industry.

Philip Morris International Inc., a multinational cigarette and tobacco manufacturing company reported a decrease in earnings back in 2018, with sales in the EU (at the time including the UK) down by 6.7%.

In the US, their flagship brand Marlboro also reported a 7% decrease in sales.

These earnings have only continued to fall as vaping grows in popularity.

How Is the Tobacco Industry Responding?

As vaping grows in popularity and tobacco sales decline, the tobacco industry has sought ways to stay in the game.

Tobacco companies have begun to invest in or outright buy vaping brands. In 2018, British American Tobacco bought Highendsmoke, the largest chain of vape stores in Germany.

In the UK, Philip Morris Ltd (who own brands such as Marlboro in the UK) invested £15 million into the expansion of VPZ, the UK’s largest chain of vape stores.

Philip Morris Ltd have also begun to craft their own nicotine replacement offerings, including the heated tobacco product IQOS and Vivid. It is yet to be seen whether their connection to UK vape stores is with a full purchase and take over in mind or if it is simply being used as a place to sell the vape devices they are developing.

 


Introduction of Vape Kits In Shops

As the industry adapts to the demand for vape devices, supermarkets and convenience stores have taken notice and begun to stock vape kits.

In the past, tobacco sales would have brought in profit for these stores, but as cigarette prices increase and sales decrease, tobacco is no longer as profitable.

To overcome this loss of income and the increasing demand for vape kits, many stores have come to stock certain vaping goods.

Growth of the Pod Vape

One of the biggest areas of growth for the vaping industry has been the pod vape.

Unlike vape stores, supermarkets and corner shops are not lining their shelves with hundreds of flavours of E-Liquid, but rather smaller, closed pod systems that offer convenience and ease to their users.

Not only are they small, but these devices are rather self-explanatory and do not require expert tips from a vape retailer to sell, making them the perfect choice for supermarkets and corner shop retailers.

John Patterson, the UK sales director for Juul Labs, states:

“Grocery retailers have been quick to recognise the potential of these formats and this has resulted in this channel outperforming others. Closed pod systems take much of the complexity away for the adult smoker looking to switch and for retailers as they’re simpler to use, more convenient and require minimal product training and upkeep.”

Here at nzo, we are proud to be part of this industry development, having partnered with Sainsbury’s to make the nzo Vape more accessible to those trying to stop smoking nationwide.

 


Why Pod Vapes?

Closed pod systems, like nzo Vape, come with everything you need to get started with vaping immediately. They consist of a battery device and a pre-filled pod of E-Liquid. The pod is simply slotted into the device, and you can start vaping immediately.

The battery part can be charged using the cable that is provided with the kit, and when you have used up the E-Liquid, you simply remove the pod and slot in the new one.

As you can see, it is incredibly simple and doesn’t involve messing around with coils, wicks and refilling tanks with E-Liquid, as with other types of vape devices.

Pod devices like the nzo are simple and convenient. The small size of the kit makes them easy to stock in stores and perfect for customers to pick up and begin their stop smoking journey.

The nzo starter kit comes with the nzo device, charging cable and a pack of three nzo pods in different flavours. If you would be interested in discovering more about how you can stock nzo in your store, then please get in touch with us!

 

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