Tobacco, Vape & Next Generation: Consumer Education

1. What are the current trends in the category?

2. What does the future of the category look like?

3. What support is available to retailers?

4. What area of tobacco, vape and next generation is causing the most confusion?

5. How should retailers be merchandising their category?

1. What are the current trends in the category?

It’s been a year of change for the category, with the disposable vape ban causing all manner of confusion for shoppers and retailers. Now that the dust has settled somewhat, what are the current drivers of growth in the tobacco, vape and next generation sector?

ELFBAR UK associate general manager, Angelo Yang, explains how legislation has determined the direction of travel for the vape category in particular. “The vaping category is mature, and while there’s been a decline in value over the past year, volume has grown as consumers transition from single-use to reusable devices. This change has been driven in part by the sale of refill pods and containers, supporting category performance.”

Yang adds that customers are gravitating towards having to buy products that will last them longer. “Alongside the uplift in refill sales, increasing demand for high puff count devices is one of the clearest category trends, driven by consumer appetite for convenience and longevity. In this segment, the LOST MARY BM6000 is showing sustained growth, with a 31% uplift over the last 13 weeks up to 28 September.”

Aquavape’s head of Marketing, Laura Cope, says this trend is value-led. “The market is continuing to move towards products that offer better long-term value and familiarity. Closed pod systems and big puff devices are still performing well, particularly those with strong brand recognition and flavour consistency.”

Cope highlights pouches as an area to watch in the category. “Nicotine pouches are also growing fast, especially among those in urban areas (according to Lumina Intelligence Vape Consumer Monitor report Wave 2 August 2025). There’s also a clear shift towards refillable open-system kits as they appeal to users who want a more personal vape experience.”

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2. What does the future of the category look like?

With current trends being dictated by enforced changes, when the market fully settles down, how do suppliers see the category shifting.

Cope believes it will more of what we’re seeing now. “We expect continued growth across refill pods, nicotine pouches, and e-liquids,” she said. “With 85% of vapers now buying refill pods (according to recent Elf Bar survey data) and pouch awareness reaching 56% in 2025 (ASH/YouGov), these formats are no longer niche. Single pods will continue to lead the way, with big puffs following close behind. Refillable open-system pod kits are also a popular choice, especially those that are easy to top-up and change with a built-in coil so no manual coil change is needed.

“The introduction of Vape Duty in 2026 will likely shift this growth to more affordable single pods, e-liquids and nicotine pouches that avoid additional tax.”

Head of marketing at Scandinavian Tobacco Group UK Prianka Jhingan, sees a big future in nicotine pouches. “The nicotine pouch category will only keep growing in both size and significance, so retailers need to ensure they are stocking the right brands to maximise sales and profits.”

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3. What support is available to retailers?

With so much change taking place within the tobacco, vape and next generation category, retailers need all of the help they can get. What support are suppliers providing to store owners to help communicate changes to customers.

“We work with retail partners offering guidance such as category advice, product range recommendations, and insights into consumer behaviour and brand trends,” says Yang. “We also offer educational support to assist retailers with compliance and help them to adapt to the shifting market. For example, we issued a two-page guide to coincide with the single-use vapes ban, enabling retailers to answer customer FAQs and advise adult smokers and vapers on transitioning to reusable products. The guide was shared with retailers and retail trade associations, whose combined membership exceeds 38,500.”

Yang adds that in-store support is provided to retailers. “In addition, our sales teams bring local market knowledge and an on-the-ground presence to help with regional and shop-specific needs, and there’s a WhatsApp group for retailers. We also supply point-of-sale materials so retailers can communicate key messages in-store, support sell-through and highlight reusable alternatives, as well as branded assets designed to maximise sales opportunities.”

This is something provided by Scandinavian Tobacco Group UK, according to Jhingan.

“Our STG reps will train staff members in-store on what each of our products means to the consumer. This might be around the different sizes or tobacco blends in our cigars or the flavours and strengths of our nicotine pouches and how they can all be individually suited to different consumer need states.”

Aquavape’s Cope explains how they make it simple for retailers to know what’s coming up. “We break things down simply, so retailers know what’s changing, when it’s happening and what to do next. With the Vape Duty coming in from October 2026, we’re already ahead of it. All of our eligible products will have the duty stamp applied, so our customers don’t have to worry about getting caught out or handling that side themselves.

“We also help retailers stay up to date with upcoming possible legislation such as packaging and display changes through our Vape Guide, newsletters and customer service/account team, we make sure compliance is one less thing for them to worry about. Alongside this, we carry out independent batch product testing with a 3^rd party, and as active members of the UKVIA we closely monitor the Tobacco & Vape Bill and any upcoming regulations we need to stay on top of.”

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4. What area of tobacco, vape and next generation is causing the most confusion?

Yang explains where the biggest pitfalls amongst consumers lie. “Our last survey of 6,000 UK adult smokers and vapers found that 51% mistakenly believe that vaping is as, or more, harmful than smoking tobacco. This aligns with ASH’s 2025 report, which also expressed concern over the sharp increase in public misperceptions, particularly among smokers, warning that the growing gap between evidence and perception could deter smokers from using vaping as an effective quit tool.

“Another common misconception is that reusable devices are not supported by readily available refills or that refills are difficult to obtain. Some consumers also incorrectly believe that refill pods cost the same as prefilled pod kits and therefore see little incentive to purchase them. Retailers can help correct this by highlighting that standard refill packs typically contain two refill pods, and refill containers for high puff count devices offer much better value than purchasing a new device each time, while also reducing waste.”

Cope says there’s confusion regarding legalities in the category. “A lot of the questions we hear are still about what’s legal and what’s not. Some customers don’t realise that a 2ml pod and 10ml refill is fully compliant, or they get confused by illegal products that look almost identical to the ones that are allowed. We help retailers spot the difference and explain it to their customers in a simple way.

“There’s also still some hesitation around refillable devices. Some shoppers think they’re too complicated or not worth the switch. But the reality is that most refillable pod kits are just as easy to use as disposables and often work out cheaper in the long run.”

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5. How should retailers be merchandising their category?

Although the changes have been seismic within the category, it’s still lucrative for retailers, if they get their offering right.

Jhingan advises retailers to make it as visible as possible. “Something that is key to driving purchase of next-gen products is visibility and how you display them in-store, so we believe that to really maximise sales of XQS it is best suited in multiple locations due to it still being a newer product in the category that some consumers may still not be aware of. We currently offer a number of different display solutions to accommodate different sized stores, which ensure maximum visibility to those entering, so retailers should speak to their STG rep to find the best solution for their particular store.”

Meanwhile, Cope says retailers should stock via format. “Start by grouping products by format, not brand. This makes it easier for staff and customers to understand how each system works and what goes with what. For example, single pod kits like the SKE 600 Pro, Lost Mary BM600, and Elf Bar 600 should be merchandised directly alongside their compatible refill pods. Highlighting the top five fruit flavours, like Watermelon Ice, Cherry Ice, Lemon & Lime, Pineapple Ice and Blueberry Sour Raspberry, helps customers choose quickly and encourages trial.

Big puff formats should also be clearly signed and split into their two main types: multi-pod kits like IVG 2400 or Elf Bar 4in1, and 2ml + 10ml refill systems such as the Hayati Pro Max+, SKE Crystal CL6000 and Lost Mary BM6000. Compatible refill pods should also be displayed next to the kits.”

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