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Canada’s Illegal Nicotine Market Surges to 38%, TVPA Review Finds

Vaping News
Canada Flavored Vape Ban, Cigarette Sales Surge

Rothmans, Benson & Hedges Inc. (RBH) has warned that Health Canada’s latest legislative review of the Tobacco and Vaping Products Act (TVPA) overlooks a massive, growing illicit nicotine market. Released last week, the review exposes critical regulatory gaps and outdated enforcement mechanisms that threaten public health.

The critique follows a December 2025 evaluation highlighting that Health Canada’s dated IT systems hinder its ability to track compliance, manage enforcement, and analyze emerging trends in the digital era. While the TVPA review acknowledges a rise in online vaping sales, it fails to address the rapid growth of online contraband sales orchestrated by organized crime.

This regulatory oversight leaves a massive portion of the market completely unchecked. Unregulated products bypass quality controls, age-verification standards, and the tobacco cost-recovery charges that fund public cessation programs.

Market MetricCanadaEuropean Union (38 Countries)
Illicit Market Share38% of total market~10% average
Uncollected Tax RevenueUp to \$2.1 billion lostVaries by jurisdiction (generally lower share)
Last Coordinated Public Report2011 (RCMP)Ongoing / 2025 KPMG Report

RBH executives argue that focusing solely on the legal, regulated industry misses the mark on public safety. They are calling for immediate federal leadership to utilize existing legal and regulatory powers to dismantle the contraband network.

“Without enforcement, regulations and laws fail to protect Canadians, leaving a country where criminals and illegal actors face too little risk and have too much opportunity,” said Kory McDonald, Head of Corporate Affairs at RBH.

  • News reference: Tobacco and Vaping Products Act review exposes gaps as illicit market grows
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Matthew Ma
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Matthew Ma
Marketing at Ecigator
With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.
Matthew Ma
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Latest posts by Matthew Ma (see all)
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May 26, 2026
Tags: Black Market, Canada, illegal tobacco, Illicit Vapes
https://ecigator.com/wp-content/uploads/2026/01/1769414322-Canada-Flavored-Vape-Ban-Cigarette-Sales-Surge.jpg 675 1200 Matthew Ma https://ecigator.com/wp-content/uploads/2023/04/ecigator-logo-white.png Matthew Ma2026-05-26 01:10:132026-05-26 01:10:16Canada’s Illegal Nicotine Market Surges to 38%, TVPA Review Finds

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