March 2026: Vaping Use Surges in Thailand Despite Longstanding Ban
E-cigarette use in Thailand has increased sharply despite the country maintaining a strict ban on the products for more than a decade. According to official data, the number of e-cigarette users rose from around 78,000 in 2021 to 900,000 in 2024 – an increase of roughly eleven-fold in just three years. The figures suggest that demand has continued to grow even while the products remain illegal and subject to enforcement actions and seizures.
The continued growth in vaping is widely attributed to the availability of products through informal channels and cross-border smuggling, which has created a sizeable grey market. With legal retail channels prohibited, enforcement authorities have reportedly struggled to keep up with illegal imports and distribution networks, despite authorities blocking as many as 40,000 e-cigarette sales websites in the first five months of fiscal year 2026.
Thailand has banned the import, sale, and possession of e-cigarettes since 2014, making it one of the strictest regulatory environments globally. Despite this, similar to other countries where e-cigarettes are banned, products often remain accessible through online platforms and informal markets, contributing to continued usage growth. In recent years, policymakers have also considered updating tobacco and nicotine legislation to better address emerging nicotine products, including e-cigarettes, suggesting that regulatory frameworks may evolve as usage patterns change and new products enter the market.
September 2025: Chinese e-cigarette exports declined by 10% in the first 8 months of 2025
According to data from the General Administration of Customs of China, from January to August 2025, the export value of e-cigarette products declined by -10% year-on-year. E-cigarette device (electronic vaporization devices) exports increased by +14.6% to US$2.12 billion while the non-combustible,nicotine-containing product exports declined -18.3% to US$4.44 billion.
In August 2025, on a year-on-year basis, e-cigarette device exports increased by +34% to US$ 301 million (-4.4% sequentially) while the nicotine product exports declined -5.7% to US$635 million (+10.6% sequentially). Total e-cigarette exports increased +4.3% to US$936 million (+5.3% sequentially). The average export unit price in August 2025 was US$45.1 per kilogram, with the average price of e-cigarette devices realized as US$4.46 per unit.
By region, the top five export destinations (the United States, the United Kingdom, Germany, South Korea, and the United Arab Emirates) accounted for 62.3% of the total export value from January to August 2025, representing a year-on-year decrease of 0.6pp. The United States remains the largest market, with an export value of US$ 2.2 billion (-8.7% year-on-year). U.S. exports accounted for 33.6% of the total export value (+0.5pp points year-on-year). The United Arab Emirates and Indonesia showed strong performance, with export values increasing by +60.6% and 67.3%, respectively. Among the top-10 markets, South Korea, Russia, and the Netherlands performed poorly, with export values falling by -34.9%, 43.5%, and 51.8%, respectively.
In August 2025, the top five export destinations (the United States, the United Kingdom, Germany, Japan, and the United Arab Emirates) accounted for 66.5% of the total export value. Exports to Japan increased by more than 200% year-on-year basis.
June 2025: E-cigarettes grossed $23 billion global retail sales in tracked channels in 2024
E-cigarette sales, outside China, increased +9.5% to $23 billion in 2024. Closed-system e-cigarettes, disposable vapes and pods, make up 64% of the global category sales – up +11.7% to $14.8 billion turnover. Closed-system e-cigarette sales volume grew +8.9% to 2.1 billion units, driven by the +18.9% growth to 840 million units in disposable sales volume. Average closed-system e-cigarette price increased by +2.7% to $7 per unit at the retail. Disposable vape turnover increased +19.6% to $6.4 billion, fetching an average retail price of $7.6 (mostly flat year-on-year basis). However, the illicit disposable vape sales in the untracked channels in the U.S. are not included in the market size estimates and could be as high as $6 billion in annual turnover.
Retail turnover increased by +5.8% to $8.1 billion for open-system (refillable) e-cigarettes. Refillable device sales volume and turnover reached 85.2 units and $2.6 billion, respectively – fetching an average retail price of $31 per unit. Refill volume and turnover reached 12.2 million liters of e-liquid and $5.5 billion, respectively – fetching an average retail price of $0.45 per ml (or $4.5 per 10ml refill bottle).
US is the top market with $6 billion retail sales and 26% global share in tracked channels. Including the illicit disposable sales in untracked channels, retail turnover in the US reached $12 billion (i.e. 41% of the global total). UK (~$4 billion turnover), Canada (~$2billion turnover) and France follows the U.S. as the leading markets. Top-4 markets command two thirds of the global retail sales.
BAT – Sensa: July 2024
BAT’s US affiliate, Reynolds American, is set to launch nicotine-free, fruit-flavored vapes in the USA on July 1 under the brand name, Sensa.
Sensa is a disposable vape that delivers up to 5,000 seconds of puffs and has a removable, recyclable battery. The Sensa product line comes in six flavors, including watermelon frost, passion fruit frost and berry fusion. Sensa’s recommended retail price of $19.99 – higher than the nicotine-containing (illicit) disposable vapes (e.g. Elf Bar) which typically retails at $13-$17. Reynolds states that it will require retailers to sell Sensa only to people aged 21 or older (even if the retailers are not required to do so by law) and to place Sensa next to the age-restricted tobacco products.
Reynolds allegedly aims to provide adults an option for moments when they want to vape but don’t want to consume nicotine (an addictive, recreational substance) – similar to nonalcoholic beer or decaffeinated coffee in terms of product concept. Reynolds also claims that nearly a million adults already use nicotine-free vapes in the US and the segment represent 1% or 2% of total e-cigarette sales in the tracked channels.
Reynolds will not seek federal clearance for Sensa as the devices contain no nicotine and aren’t compatible with any other tobacco products; thereby, they don’t fall under the jurisdiction of the US FDA’s Center for Tobacco Products.
BAT – Vuse Zero Nic Sensations: June 2024
British American Tobacco (BAT) will launch its new nicotine-free disposable vape, “Vuse Zero Nic Sensations”, in Japan on July 1. The product is available in four flavors (Mint Ice, Yuzu Mint, Cactus Cherry and Dragon Pomegranate) and will be sold at FamilyMart c-stores, Amazon and vape stores in Tokyo at a suggested retail price of ¥1,480 (US$9.25).
Since 2023, Vuse is selling nicotine-free products in Japan. However, the new disposable device comes in a compact box shape (instead of a stick shape) and is filled with an e-liquid developed specifically for zero-nicotine vapes. Moreover, the new transparent design allows users to see the remaining amount of e-liquid.
In Japan, nicotine-containing vapes have to be registered as a medicinal product whereas the non-nicotine vapes are sold as a consumer product.
PMI Progress Update: February 2024
For so long, PMI downplayed the role of e-vapor in its smoke-free portfolio with undivided focus, firstly, on heated tobacco in the international markets and, then, on nicotine pouches in the US. PMI’s lack of focus in the e-vapor category was based on its unwillingness and inability to compete with hundreds of small (“under-the-radar”) players as well as a lack of a strong product portfolio. However, at the 2024 CAGNY Conference, PMI offered hints of change in its strategy for the e-vapor category.
PMI now underlines the emerging signs of better regulation & enforcement – which will eventually eliminate the vast majority of the small players and result in market consolidation (i.e. less price-based competition and better profitability for the major players). PMI also admits the “substantial consumer demand with more than 60Mn adult vapers (ex-China & Russia)” – which is roughly twice as many as heated tobacco users.
Regulation, enforcement & consolidation: the progress (towards an “optimal” set-up) will take time and will not be uniform across the markets. However, PMI sees the light at the end of the tunnel and is trying to get ready to jump on the opportunity as the market environment becomes suitable (i.e. selective market play). Although, in strictly commercial terms, the strong category share progress achieved (in a small subset of the e-vapor market) in Italy and Czechia through VEEV re-launch means little, it proves that PMI’s e-vapor portfolio (both disposable and pod-based products) is becoming competitive.
VUSE Launch in Malaysia: February 2024
In Q4 2023 Earnings release, BAT Malaysia reported 25% decline in operating profit (despite 5% increase in revenue) due to the sizable investments made to build brand visibility & image of VUSE e-vapor products. In April 2023, Malaysia removed the liquid nicotine used in e-cigarettes from the list of substances controlled by the 1952 Poison Act – effectively legalizing e-cigarettes while imposing an excise tax of 40 sen/ml (further reading: Regulation: E-cigarettes).
In August 2023, BAT launched its VUSE GO (disposable vape, up to 1,500 puffs) in Malaysia. VUSE GO (3% nicotine) is available in 7 different flavors (mango, strawberry, mint, blueberry, tobacco, watermelon and grape) and retails at MYR22 ($4.6). BAT aims to quickly ramp up VUSE to the level of Dunhill – which has 32% share in the Malaysian cigarette market (62% share in the premium segment).
Elf Bar: December 2023
Ahead of the consultation deadline for the Tobacco and Vapes Bill in the UK (ending on December 6), Elfbar announced that they are dropping the youth-appealing dessert and soft drink flavors1. Recall: our “Regulation: E-cigarettes” write-up.
Elfbar and Lost Mary already stopped Bubble Gum, Cotton Candy, and Rainbow Candy flavors and renamed Gummy Bear as Gami – even if the changes will become apparent on the shelves following the depletion of the trade inventories. Following BAT’s earlier announcement, Elfbar also called for a licencing regime for vapes (similar to tobacco and alcohol) and rules requiring retailers to display vapes behind the counter. Elfbar argued against the introduction of an excise tax on vapes claiming that a such tax would encourage vapers to switch to illegal vapes or relapse back to cigarettes.
According to the NielsenIQ data, Elfbar and Lost Mary make up more than half of the UK’s disposable vape sales and sold more than £900Mn worth of vapes (more than 160Mn units) in the last twelve months. NielsenIQ numbers only capture around half the market and don’t include vape shops, online retailers and low-tiered c-stores.
PMI – VEEV Accents: September 2023
At the 2023 Investor Day, PMI highlighted e-liquid formulation (that is different from the more natural tobacco taste) as the primary reason of smokers not switching exclusively to e-cigarettes. In order to deliver a better tobacco flavor experience, PMI developed VEEV Accents by extracting genuine flavors from tobacco leaves. VEEV Accents’ pilot launch in Canada resulted in a significantly better sales performance than the competition’s tobacco variants (+42% more pod uptake in the same stores). As the flavor restrictions (i.e. ban on sweet/fruity flavors) become more prevalent in the e-cigarette category, sensorial quality of the tobacco flavored vapes will turn into an increasingly important success factor.
VUSE: September 2023
Youth access is the Achilles’ heel for vaping products in terms of their potential to contribute to the public harm reduction. To help to reduce youth access, Imperial Tobacco Canada (a BAT subsidiary) rolls out the Vuse Pass in all its Vuse retail stores across Canada2,3 – following a successful pilot in Toronto.
The Vuse Pass allows access to the VUSE stores through bio-metric verification of palm scan. Customers need to sign up for a one-time age verification. In cases where customers chose not to sign up, the store clerk continues to verify age manually. The Vuse Pass aims to eliminate the possibility of fake and shared IDs while facilitating access for the verified legal-age nicotine users.
VUSE is the market leader in Canada with 90% SoM in closed-system e-cigarettes.
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