Researchers call for action on ‘huge’ illicit vape market, but caution against heavy regulation

Urgent action is needed to tackle the illicit e-cigarette market around the world, industry analysts at Tamarind Intelligence have warned.

However, simply imposing even tighter rules on the whole vape sector is unlikely to be the solution, they added.

Tamarind said its research 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.

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.

“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,” said Barnaby Page, editorial director of Tamarind Intelligence.

“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,” Page added. “That’s the most extreme example of illicit trade, but there are many other ways in which vapes can be illicit.”

Heavier regulation can make the problem worse, he added. “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,” Page said.

Tamarind has produced a free podcast, highlighting the issue of illegal vapes and their impact, and is now preparing to publish a major report.