Research and analysis

Executive summary: Understanding the vaping market

Published 6 March 2024

Mixed methods research to explore the current UK vaping market.

HMRC Research Report 740.

Research conducted by Ipsos between May and July 2023. Report prepared by Ipsos (Joanna Crossfield, Elena Di Antonio, Andrew Shaw, Morwenna Byford, Grace Atkins, Ayesha Lynn-Birkett) for HMRC.

Disclaimer: The views in this report are the authors’ own and do not necessarily reflect those of HMRC.

1.       Overview

HM Revenue and Customs (HMRC) commissioned Ipsos to undertake research into the UK vaping market. The purpose of this study was twofold. First, to explore the current UK vaping market, providing HMRC insight to help understand the economic impact of any wider policy changes to vaping or e-cigarettes. Second, to inform HMRC about the profile and behaviours of current vapers, including their overall vaping habits, purchasing behaviours, future intentions and general attitudes towards vaping.

The study updates previous research into the vaping market conducted in 2016. As the estimated number of smokers steadily decreases, the market for vaping is rapidly growing and evolving. HMRC needed to build an understanding of this rapidly evolving vaping market to anticipate future trends and maintain an accurate and up to date profile of the market.

2.       Research design

This research included a mix of 21 depth interviews with current or lapsed vapers, and 18 interviews with businesses in the vaping industry, including vaping industry associations, manufacturers, suppliers, wholesalers and retailers. These were conducted between 24 May and 20 June 2023.

This was followed by a survey of 2,518 current or lapsed vapers and current or lapsed smokers conducted between 13 July and 19 July 2023, using Ipsos’ online random probability panel.

Where we asked questions to current smokers and lapsed smokers together, we decided to only focus on current smokers. This is due to the partial overlap between current and lapsed smokers (see Glossary for more information).

3.       Key findings

3.1          Current vaping usage and purchase behaviours

Around 1 in 8 (12%) UK adults reported being vapers at the time of completing the survey (current vapers). This percentage is in line with national data from the Office of National Statistics. People aged 18-24 (25%) and those from less affluent groups were more likely to report use of vapes than average (for instance, 20% of vapers live in the 1st IMD quintile).

Amongst current vapers, 54% said they mostly used reusable vape products and 43% mostly used disposable vapes.

There were some key differences between users of disposable and reusable products. Users of disposable vapes were broadly younger than users of reusable products. For instance, 32% of disposable vape users were aged 18-24, and this was significantly higher than the 11% of reusable product users who were aged 18-24

Users of disposable vapes displayed different purchasing behaviours than users of reusable products. Disposable vape users were most likely to report buying vapes in local shops (61%); whereas users of reusable products preferred online retailers (39%). A key reason for users of disposable products to buy in a specific location was convenience (67%). Whereas users of reusable products were more likely to buy from places that stocked the types of vapes or e-liquids they like to use (58%).

The interviews with current vapers and retailers support these findings, indicating that users of disposable vapes tended to make purchases in the moment and at the time of need, driven by availability, cost considerations and familiarity with the product. On the opposite side, users of reusable products were more interested in getting the right products, so tended to put more thought into where they made their purchases.

3.2          Vaping and smoking, and the future of vaping

Vaping was seen predominantly as an alternative to smoking. For instance, 53% of vapers reported quitting smoking. Furthermore, 59% of smokers who also vaped reported a decrease in the amount of tobacco they used and a key reason to start vaping was helping them to stop smoking (49%). These findings are supported by the interviews where a driver to begin vaping was it being an alternative to or replacement for using tobacco products, as healthier and more socially acceptable.

Only 4% of non-vaping smokers said that they intended to start vaping in future. This finding suggests that the vaping market, for those switching to vapes as a smoking alternative, may grow at a slower pace in future.

3.3          Motivations to vape

One of the top reasons given for vaping was it being a healthier alternative to smoking (37%). Health concerns amongst current vapers were also identified in some interviews and tied into attitudes towards regulations and illicit products. The interviews also indicated that concerns around being sold fake products, that could potentially have a negative effect on health, also prevented those vapers from increasing their vaping intake.

However, for those consuming mostly disposable vapes, social and enjoyment factors were the most important reasons why they vaped. The survey showed that 26% of users of disposable vapes reported starting vaping without previous experience of smoking.

The interview findings support this, as we identified a group of vapers who reported beginning vaping with little or no previous experience of smoking tobacco products. This group tended to include users of disposable vapes and those aged under 25+. For these current vapers, the social aspect of vaping was an important part of its appeal, with current vapers, young people in particular, described vaping as a ‘key part’ of the way they socialise with friends.

Cost considerations were not as front of mind as social and health factors, but findings indicated a tipping point at which cost became important. In a hypothetical situation presented in the survey, increasing the price of vapes by £1 did not notably change current vapers intention to vape with 71% saying they would be likely to vape about the same amount. However, doubling the price had more of an impact, with 62% of current vapers saying they would reduce how much they vape in this scenario.

3.4          Regulations and the illicit market

The interviews showed that amongst current vapers awareness of existing regulation was low. However, vapers we talked to were confident that existing regulation reflects the current evidence on the health impacts of vaping. They also anticipated increased regulation was likely to happen soon. Specifically, interviewed current vapers were keen to see more regulations around the safety of vaping products; the limitation of the illicit market; limitations to the use of vaping products by people under the age of 18; and the reduction in the usage of disposable vapes as a response to littering.

Interviewed retailers, manufacturers and suppliers were broadly supportive of existing legislation to limit illicit market but wanted better enforcement. The 14 businesses interviewed for this research were broadly supportive of measures to limit the illicit market, as they felt that this would improve their market share. However, they perceived there to be a widespread lack of enforcement, which meant that some businesses were reluctant to consider the introduction of increased regulation, as they felt it would not be worthwhile until enforcement was increased.  

In the interviews, trust emerged as an important factor when considering which suppliers to work with. In the interviews, wholesalers and manufacturers also stated that concerns around being sold illegitimate products meant that they prioritise existing relationships with large, reputable suppliers over smaller suppliers and new market entrants. Wholesalers and manufacturers also spoke of efforts to ensure that they only sell their products to businesses that sell them responsibly.