Illicit Market Action Required
Action is needed to combat the “huge” illicit vape market, researchers at Tamarind Intelligence say, but warn that heavy regulation may just make the problem worse
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by Dave Cross
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Urgent action is needed to tackle the illicit e-cigarette market around the world, industry analysts at Tamarind Intelligence have warned. But simply imposing even tighter rules on the whole vape sector is unlikely to be the solution, they say. A challenge to the government to work smart, not harder.
Research by Tamarind into the illicit vape trade has shown that it affects not only manufacturers, distributors and retailers, but consumers too. In many places, illicit products – those that break the law in some way – make up a significant part of the market.
The rules for vaping products:
- All products must be registered with the Medicines and Healthcare products Regulatory Agency
- All tanks must be 2ml or less in volume
- No eliquid can be stronger than 20mg/ml
- There are requirements with what must feature on packaging
Illicit products may not comply with rules on areas such as nicotine strength, ingredients, or packaging. And because tax will generally not be paid on them, they can be cheaper than legitimate products – undermining the efforts of companies which do comply with the law.
Barnaby Page, editorial director of Tamarind Intelligence, said: “While it’s difficult to exactly pin down the scale of the illicit market, it’s certainly huge in many countries – more than half of total vape sales in some places.
“Our research draws on a range of indicators, including disparities in import statistics, to highlight this. And we’re not just talking about products that are smuggled. That’s the most extreme example of illicit trade, but there are many other ways in which vapes can be illicit.”
Page explained why heavier regulation can make the problem worse: “For example, banning online retail or increasing taxes simply tends to encourage the illegal market, and prevents consumers from accessing legal products which do comply with all the rules designed to protect them.”
To highlight the issue of illegal vapes and their impact, Tamarind has produced a free podcast and is now preparing to publish a major report.
ECigIntelligence is the leading provider of detailed global market and regulatory analysis, legal tracking, and quantitative data for the e-cigarette sector worldwide.
“We provide our clients with the tools to navigate this fast-moving sector, tailor their business strategy, optimise resources, and make informed decisions. Our global perspective on the international vape sector offers valuable data such as market trends, key players, regulatory obligations and industry dynamics,” it says.
ECigIntelligence is published by Tamarind Intelligence, which also produces CannIntelligence and TobaccoIntelligence.
References:
- The illicit vape problem, a Tamarind Intelligence podcast - https://ecigintelligence.com/tamarind-intelligence-podcast-illicit-vape-problem/
- ECigIntelligence - https://ecigintelligence.com/
- Tamarind Intelligence - https://tamarindintelligence.com/
- CannIntelligence - https://cannintelligence.com/10th-anniversary/
- TobaccoIntelligence - https://tobaccointelligence.com/
Photo Credit:
Photo by Kelsey Farish on Unsplash, resized and cropped
Dave Cross
Journalist at POTVDave is a freelance writer; with articles on music, motorbikes, football, pop-science, vaping and tobacco harm reduction in Sounds, Melody Maker, UBG, AWoL, Bike, When Saturday Comes, Vape News Magazine, and syndicated across the Johnston Press group. He was published in an anthology of “Greatest Football Writing”, but still believes this was a mistake. Dave contributes sketches to comedy shows and used to co-host a radio sketch show. He’s worked with numerous start-ups to develop content for their websites.
