UK Vape Duty May Boost Smaller Devices & Nicotine Pouches
Following the significant disruption caused by the UK’s disposable vape ban, the vaping sector is now being urged to prepare for the next major regulatory shift: the introduction of a vape duty in October 2026. Tom Power, senior national account manager at Phoenix 2 Retail, suggests this new tax could spur sales of smaller vaping devices and duty-exempt nicotine pouches as consumers look to manage costs.
Speaking at a recent industry event, Power noted that while the disposable ban caused “massive disruption,” the market has bounced back, with growth now focused on pods and “big puff” devices. However, the incoming duty—adding £2.20 per 10ml of e-liquid on top of VAT—will significantly increase prices. For example, a 10ml big puff device currently costing £12.99 would see a sizeable price hike. Power predicts this will lead budget-conscious consumers to “look instead to buy a smaller 2ml device because of the pricepoint, or look to oral nicotine to avoid duty.”
Since nicotine pouches are exempt from the planned duty, Power expects their popularity to continue growing. He advised forecourt operators to prioritize established brands like Velo and Nordic Spirit, before expanding into others like Fumi, Zyn, and higher-strength options. Retailers are also warned to prepare for the requirement that all stock display a duty stamp by April 1, 2027, to avoid being left with unsaleable inventory.
Power believes the impact of the duty will be less severe than the disposable ban but emphasizes the importance of early preparation. He pointed to Ireland, which recently introduced similar levies, as a key market to watch for insights into consumer behavior changes. “There is still plenty of time for everyone to prepare… but it is worth having a conversation with your supplier,” he added.
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