August 2026: Illicit High-Nicotine Vapes Flood European Markets Amid Enforcement Gaps
A parallel market for non-compliant e-cigarettes is rapidly expanding across Europe, granting consumers easy access to hyper-concentrated, massive-capacity disposable vapes. Recent investigations by public health advocacy groups reveal that illicit e-cigarettes vastly exceeding legal safety thresholds can be purchased online within minutes.
Under current regulations across the European Union, the United Kingdom, and Switzerland, e-cigarettes are subject to strict legal ceilings. Disposable vapes and single-use pods are restricted to a maximum container volume of 2 mL, while nicotine concentrations are capped at 20 mg/mL (2%). These limits were established under frameworks such as the EU Tobacco Products Directive to reduce acute toxicity risks, prevent severe nicotine addiction, and limit overall youth appeal.
Despite these statutory boundaries, high-capacity and high-potency products are experiencing a market boom. Online retailers openly advertise devices with nicotine concentrations of 50 mg/mL (5%) – two and a half times the legal ceiling – with newer offerings reaching up to 80 mg/mL. Liquid volumes in these illicit disposables range from 17 mL to 70 mL per unit, yielding advertised puff counts between 30,000 and 150,000, with extreme models claiming over 500,000 puffs. Vendors increasingly operate using an “EU Warehouse” model, storing non-compliant stock directly inside European borders to provide rapid domestic delivery that completely bypasses international customs controls.
The proliferation of these non-compliant devices highlights severe gaps in market surveillance and law enforcement. Far from operating on hidden darknet networks, these storefronts are indexed by standard search engines, process routine electronic payments, and use localized domain names to project an aura of legitimacy. Market monitoring authorities currently lack the cross-border mechanisms, digital oversight tools, and dedicated resources necessary to trace importers, inspect domestic storage hubs, and remove illegal digital storefronts, leaving European consumers broadly exposed to unregulated products.
August 2026: EU Anti-Fraud Office Helps Dismantle Major Counterfeit Nicotine Pouch Factory in Lithuania
The European Anti-Fraud Office (OLAF) has assisted Lithuanian authorities in uncovering and dismantling a major illegal factory producing counterfeit nicotine pouches in Kaunas, Lithuania. Acting on intelligence provided by OLAF, the Lithuanian Customs Criminal Service raided the sophisticated production facility, seizing over 330,000 boxes of counterfeit pouches bearing the trademarks of well-known global brands, alongside large volumes of unlabelled products and raw materials.
Investigators found that the clandestine site was manufacturing roughly 30 different product varieties across various flavors and nicotine strengths. Authorities also seized bulk quantities of nicotine – classified as an acutely toxic substance – stored and processed without required safety controls. The operation is believed to have supplied illicit goods to markets across Scandinavia, the Baltic states, and the United Arab Emirates.
As the nicotine pouch market grows rapidly across Europe and international markets, an illicit trade in counterfeit products has emerged in parallel. Officials warned that unregulated production lines pose severe health risks to consumers by bypassing mandatory safety standards, while simultaneously infringing on intellectual property and undercutting legitimate businesses.
March 2026: Illegal Disposable Vapes Flooding Europe as Black Market Activity Surges
Illegal disposable e-cigarettes are rapidly expanding across Europe, creating a large unregulated market and undermining existing tobacco and vaping regulations. Nearly half of all e-cigarettes sold in Europe come from irregular or illegal sources, highlighting the scale of the problem. The illicit disposable vape market is already valued at €6.6 billion in 2026 and is projected to grow to €10.8 billion by 2030. The recent analysis suggests that only 52% of the market is fully legal, while 13% falls into a regulatory “grey” zone and 35% is considered illegal1.
A major driver of the illegal trade is the widespread availability of devices that violate European regulations. Common breaches include e-liquid capacities exceeding the legal 2ml limit, nicotine concentrations above the permitted 20 mg/ml, missing health warnings, and failure to register products in the EU notification system. The majority of unregulated disposable vapes entering Europe originate from outside the region, with around 90% of these products coming from China. Gaps in enforcement, differences in national regulations, and weak customs controls have created opportunities for illicit trade to flourish across the EU.
Amid the lack of coordinated EU-wide measures, several member states are moving independently to curb illicit vape sales and youth uptake. The Netherlands, for example, has introduced strict measures including a ban on flavored e-cigarettes and stronger enforcement efforts targeting illegal disposable devices. Despite these efforts, the country has seen a continued growth in illegal vape products, suggesting that unilateral national measures alone may have limited impact. The rapid expansion of illegal disposable vapes could undermine public health policies, reduce government tax revenues, and make it more difficult for regulators to control product standards and youth access across Europe.
March 2026: Illicit Trade in Germany’s Vape Market Is Surging
The illegal market for e‑cigarettes in Germany is growing rapidly, posing serious challenges for law enforcement, youth protection, and state revenue. Recent studies estimate that around 40 % of e‑cigarettes (vapes) in Germany are illegal. These products are often untaxed, contain excessive nicotine, and frequently do not comply with the Tobacco Products Act in terms of design and packaging. With the planned ban on menthol and cooling agents in vape liquids – used in four-fifths (80%) of all products – the share of illegal products could double to 80 %.
The economic impact is substantial: missing tax revenues from illicit nicotine products are estimated at about €100 million per year. For context, Germany’s current excise tax on vapes is structured at 0.16 € per millilitre of liquid for e‑liquids exceeding 1 mg/ml nicotine content, and zero-rated for products below this threshold. Critics argue that the combination of rising taxes, bans, and limited enforcement has fueled illicit trade rather than curbed it.
Authorities warn that current controls are insufficient and that policies narrowly focused on product bans risk further expanding the illegal market. Effective, enforceable regulation is needed to protect consumers, ensure age verification, maintain product standards, and safeguard tax revenues.
February 2025: Weight of illicit sales in total e-vapor market is as high as 80% in some markets
The global legal vape market is projected to grow by +7% in 2024, at a slower rate than in previous years and trailing behind nicotine pouches and heated tobacco. However, the illicit e-vapor market continues to grow fast worldwide, often outpacing the legal sales growth, due to consumer preference for restricted product features like flavor varieties and larger sizes. The +7% figure does not account for the widespread surge in illicit and non-compliant vapes which are difficult to measure and regulate.
Regulatory frameworks for vapes vary significantly across countries, with some markets lacking specific regulations, others imposing total bans, and most enforcing specific compliance measures. These regulations impact product characteristics such as nicotine concentration, size, and flavors, but inconsistencies create confusion for both consumers and businesses.
In the U.S., e-vapor market remain highly fragmented and competitive, with significant regulatory challenges. The FDA’s PMTA process require companies to seek market authorization, but despite millions of applications, only a few products were authorized. Many products remain on the market without authorization, as effective enforcement mechanisms are lacking. Additionally, state and local regulations add complexity, with some municipalities banning e-vapor products entirely. Euromonitor estimates2 suggest that more than 80% of the market consists of non-compliant or illicit products, mainly driven by consumer demand for restricted flavors. Euromonitor’s estimate of illicit market share is higher than Altria and BAT’s own estimates (i.e. more than 60% and around 70%, respectively).
In Europe, where regulation focuses on product size, nicotine strength and flavors, Chinese manufacturers are adapting to regulatory challenges through product modifications.
October 2024: Illicit vape market is on the rise in Quebec, Canada after the flavor ban
One year ago, the Government of Quebec banned flavors for e-vapor products, except tobacco. BAT’s Canadian affiliate, Imperial Tobacco Canada (ITCAN), estimates that 60% of Quebec’s vape market is now illegal in the absence of adequate enforcement. ITCAN claims that hundreds of vape shops and dozens of online retailers are floating the market with illicit flavored vapes3.
According to an ITCAN-commissioned study, 61% of the vapers have purchased flavoured vapes, other than tobacco, in the past 12 months. 40% of these vapers purchased the illicit product from a vape shop and 31% purchased online – although online sales are banned since 2015. Moreover, 47% stated that they were in the know while purchasing an illicit product.
ITCAN outlines five solutions to return order the vape market:
– Train Ministère de la Santé et des Services Sociaux (MSSS) inspectors to accurately identify non-compliant products and issue fines heavy enough to deter illegal players
– Conduct an “enforcement blitz” to demonstrate the gravity of the situation and ensure public awareness of the government’s intention
– Identify the largest distributors selling non-compliant products into Quebec and issue the largest possible fines (C$500,000)
– Address online sales by issuing warnings and severe fines against ecommerce platforms, payment providers and couriers
– If the government is unable to enforce the regulation, restrict the sale of flavoured vapour products to government-run retail outlets (such as the SAQ and SQDC) that are already trusted to sell flavoured alcohol and cannabis to adult consumers.
Australia: June 2024
Nicotine pouch imports to Australia is surging following the vaping crackdown and federal government’s ban on single-use vapes4. More than 1.3Mn nicotine pouches have been seized by the Australian Border Force since January 2024 – 950% more than the total amount seized in the previous two years. Most batches are sent from Sweden, with China being another major country of origin.
It is unlawful to sell, buy or advertise nicotine pouches in Australia, except with a prescription from a medical practitioner. Therapeutic Goods Administration does not approve the use of nicotine pouches based on the assessment that there is no strong evidence supporting the effectiveness of nicotine pouches in helping people quit smoking or vaping.
Authorities say they are working to identify “high risk senders” and “likely importers” in order to intercept the shipments. The Department of Health is also conducting routine compliance checks of tobacconists; when nicotine pouches are found, they are seized and destroyed. The retailer is then given a formal warning and can be liable to criminal prosecution. Nevertheless, nicotine pouches are widely available in retailers across Australia.
UK: January 2024
The number of illegal vapes seized in the UK more than quadrupled5 as the authorities have taken hold of 4.5Mn vapes (weighing nearly 10 tonnes) in the first 10 months of 2023. According to the figures released to the BBC in response to an Freedom of Information (FOI) request, the UK Border Force seized just 4,430 vapes in 2021 and close to 1Mn vapes in 2022.
Border Force is responsible for intercepting illegal vapes coming into the UK from overseas. In most cases, Border Force seizes vapes for breaching product safety rules; to a lesser extent, it also seizes counterfeit vapes (i.e. fake versions of the vapes registered with the Medicines and Healthcare Products Regulatory Agency) and shipments breaching customs procedures.
Once products enter the UK, the responsibility falls to Trading Standards teams at local councils. Trading Standards seized more than 1.5Mn vapes last year – up from next to none in 2020. In Manchester, a hub for both the legal and illegal vape trade, Trading Standards seized 158,000 illegal vapes in 2023 – a more than tenfold increase year-on-year basis. Meanwhile, vape seizures in the London borough, which covers the Heathrow airport, declined by more than 80% to 224,000 in 2023 as the increased enforcement around the Airport led the importers to use other routes.
India: January 2024
The Ministry of Health & Family Welfare demands Director General of Police (DGP) to act against illegal sale of e-cigarettes6 and to issue necessary instructions to all the police stations to implement the PECA (Prohibition of Electronic Cigarettes Act 2019) requirements. The Ministry further required the DGP to provide monthly data on PECA violations.
The Ministry points out to the consumer complaints (i.e. e-cigarettes being sold despite the prohibition) as an indication of proper inspection and monitoring not being conducted at the state level. Production, importation, exportation, transportation, storage, distribution, sales and advertising of e-cigarettes are banned in India under the PECA which came into force in 2019.
Australia: November 2023
Australian Border Force seized 32 tonnes of vapes in one month7. Therapeutic Goods Administration (TGA) states that 92% of the seized products were unlawful and more than 60% were disposable vapes from brands already deemed in breach of the minimum safety and quality standards. Currently, illegally importing/supplying “unapproved therapeutic goods” (such as nicotine vapes without a TGA-license/permit) carries a punishment of up to five years in prison and/or A$1.25Mn fine in Australia.
Recall: Nicotine is classified under the Poisons Standard as a “prescription only medicine” (Schedule 4)8 in Australia, except for smoking tobacco and NRTs (preparations for buccal/trans-dermal administration used as an aid in withdrawal from tobacco smoking).
Finland: October 2023
Finnish Customs reported 80% drop in the illegal importation of snus during the January – September 2023 period9. The reduction in snus seizures coincides with the lifting of nicotine pouch importation ban (see below for further details) and the liberalization of nicotine pouch sales – suggesting a potential shift in consumer behavior following the availability of nicotine pouches in the Finnish market.
Recall: In April 2023, the Finnish Medicines Agency (FIMEA) reassessed the classification of the nicotine pouches10 and decided that nicotine pouches can no longer routinely be classified as medicinal products (solely based on the fact that they contain nicotine, a substance with pharmacological influence). FIMEA also stated that nicotine pouches largely meet the definition of tobacco substitute and their regulation should be included in tobacco legislation.
Mexico: September 2023
According to a recent Nielsen survey, 10% of the Mexican adult population are currently using some type of electronic nicotine delivery device11 – despite both e-cigarettes and heated tobacco products are banned in the country. The e-nicotine market is estimated at MXN5Bn (US$280Mn) with 77% of the e-nicotine consumers being in the age bracket of 19-39 years old.
Background
The World Health Organization (WHO) defines “illicit tobacco trade” as “any practice or conduct prohibited by law and which relates to production, shipment, receipt, possession, distribution, sale or purchase including any practice or conduct intended to facilitate such activity”.
The most common form of illicit tobacco trade for cigarettes are:
– Contraband: genuine cigarettes that have been bought in a low-tax country and which exceed legal border limits or are acquired without taxes for export purposes, to be then illegally re-sold in a market with higher prices
– Counterfeit: cigarettes manufactured without authorization of the rightful owners and with intent to deceive consumers and to avoid paying duty
However, the situation is different for the RRPs. Like the category itself, the illicit trade in RRPs (heated tobacco, e-cigarettes and modern oral tobacco) are also in a nascent stage.
– E-cigarettes: As the category is largely un-taxed (i.e. no excise tax), prices vary little from one market to another. Thereby, contraband is not a relevant issue. Moreover, as there are no strong brands or technologically superior products (- with underlying technology being shared by the manufacturers), counterfeit is not a relevant issue either. Illicit trade activities most commonly observed for the category include: e-cigarette sales in countries/channels where the category is banned and selling e-cigarettes that don’t comply with the legal specifications in terms of nicotine content and/or flavors. The current situation of illicit trade in modern oral tobacco is similar to that of e-cigarettes.
– Heated tobacco: This category can be seen as the extension of traditional tobacco for which both contraband and counterfeit could be relevant. However, the emergence of sizable consumer group and well-known brands are the two prerequisites for the illicit product. PMI’s TEREA/HEETS (used with IQOS) is probably reaching a tipping point in this regards. There are already some reported cases of contraband heated tobacco sticks. However, considering the technology involved in the IQOS product, PMI is better positioned to fight the illicit trade when compared to the conventional cigarettes.
References:
- https://www.eureporter.co/health/2026/03/12/illegal-disposable-vapes-flooding-europe-new-study-warns ↩︎
- https://www.euromonitor.com/article/navigating-the-e-vapour-market-and-the-rise-of-illicit-products ↩︎
- https://www.imperialtobaccocanada.com/en/attachments/ITC-No_reason_to_celebrate.pdf ↩︎
- Nicotine pouch use by young people on the rise amid massive surge in imports to Australia following vaping crackdown – ABC News ↩︎
- Over four million illegal vapes seized at border – BBC News ↩︎
- Health ministry directs State DGP to act against illegal sale of e-cigarettes – Hindustan Times ↩︎
- $11m haul of illegal nicotine vapes seized at the border | Kalgoorlie Miner (kalminer.com.au) ↩︎
- https://www.tobaccoinaustralia.org.au/chapter-18-e-cigarettes/18-13-legal-status-in-australia ↩︎
- https://www.helsinkitimes.fi/finland/finland-news/domestic/24253-decline-in-illegal-snus-imports-linked-to-the-deregulation-of-nicotine-pouch-sales.html ↩︎
- https://www.fimea.fi/web/en/-/fimea-supports-legislative-reform-concerning-nicotine-pouches ↩︎
- https://politico.mx/5-datos-para-entender-el-mercado-del-vapeo-en-mexico ↩︎
