Find out how the Vape Duty Tax could impact shopper behaviour.
High puff count devices continue to be the strongest performer within the Scottish convenience channel, accounting for just over 60% of sales, highlights Elfbar. “Rising cigarette prices and cost-of-living pressures are contributing to this trend, with larger-capacity products favoured over smaller devices for their greater e-liquid volume and lower cost per puff,” says Associate General Manager Angelo Yang.
Manir Ahmed, Business Development Manager at Vape Supplier Ltd, explains the impact of the popularity of high puff count devices on convenience retailers. “With disposables [before the ban] people were coming in to shops every day or every second day and buying a couple of vapes and buying other things while they were in store. But now what’s happened with the big puffs, people buy one and you won’t see that person for three or four days.”
But things might come full circle with the Vape Product Duty, which comes into force on 1 October, he predicts. “All the big puffs are going to go up in price. We think people are going to go back to buying the lower 600-puff products, as there won’t be as much of an increase on those.”
SNU agrees that the tax may prompt users of high puff count devices to switch.
“The Vape Product Duty will add an extra £2.20 per 10ml of e-liquid, therefore larger devices will see a significant rise in price,” says a spokesman. “Big puff vapes are likely to decline in popularity as consumers switch to cheaper options.”
He advises retailers to give consumers more choice on the pricing front. “Strengthening the range of more affordable formats, such as nicotine salts, can help stores retain customers who may be unwilling or unable to absorb price increases.”
He says refillable pod kits and nicotine salts offer lower long-term costs and a broader range of flavours. “We currently offer 52 unique flavours at Bar Juice. Nicotine salts also provide retail store owners with high profit margins and encourage repeat-purchase habits.”
Nicotine pouches will not be affected by the Vape Product Duty and are already seeing strong growth. “Our latest data shows total UK nicotine pouch sales have now reached just under £250m and are growing by 46% YOY in volume terms [IRI Marketplace, w/e 05-07-26],” says STG Head of Marketing Prianka Jhingan. “Although more sales currently take place in the grocery channel, they continue to grow fastest in the convenience channel. In fact, our latest data show pouch volume sales have grown by 57% in the last twelve months in convenience stores, with our own XQS selling particularly well in this channel.”
In the face of rising costs, XQS has priced its products at around £1 cheaper than other major brands in the market, at £5.50.
Following a brand refresh earlier in the year, XQS has introduced a mint portfolio comprising 6mg The Spearmint, 10mg The Peppermint and The Menthol in 11mg and 17mg.
Whether consumers trade down to lower puff count devices, switch to refillable systems or explore nicotine pouches, the Vape Product Duty looks set to be a major driver of change in the smoking alternatives category.
