Vape Tax and Disposable Vape Ban: A New Market for 2025?

Vape Tax and Disposable Vape Ban: A New Market for 2025?

In recent years, vaping has become a popular alternative to traditional smoking. Its rise in popularity can be attributed to the perception that it is a less harmful option compared to conventional cigarettes, coupled with the wide variety of flavours and the sleek design of devices.

However, this popularity has not gone unnoticed by governments worldwide. The UK is among those acting, with massive implications for the industry in 2025 and 2026. This article looks at the disposable vape ban announced for 1 June 2025 and the recently announced first-ever vape tax from 1 October 2026, exploring how the market might evolve by 2025.

Understanding the Disposable Vape Ban

The disposable vape ban is a regulation announced by the newly appointed Labour Government aiming to reduce the negative impact of single-use disposable vapes and concerns for youth vaping from single-use vaping products.

These devices have gained traction for their ease of use and accessibility, often illegally sold at local food and drink shops with no concern for legal age proof checks.

Why Ban Disposable Vapes?

Despite their convenience, it comes at a cost, contributing significantly to electronic waste. With non-recyclable components, and the scrutiny it faced as youth vaping was on the rise, the ban was inevitable.

With concerns for future generations, the amount of disposables (millions per week) ending up on general waste landfill, fire hazards they cause and relatively low cost, it is no wonder the ban was passed through Parliament following a six-month consultation period.

Disposables have gained so much attention because of their bright colours and appealing fruity and candy-inspired flavours that attract younger audiences, leading to calls for a ban.

The UK's Stance on Disposable Vapes

In the UK, discussions around banning disposable vapes have progressed naturally, and this was reflected in the October Budget, as the Labour government imposed their stamp on the economy. However, they did face a dilemma, as there is still a divide among public opinion between those who find a use for them vaping and those who see the impact they are having on the youth of the UK and the environment.

On the one hand, you have millions of adult smokers who have turned to vape devices such as disposables as a last resort. With prefilled e-liquids, coils preinstalled and fully charged batteries ready to go, it seemed like the perfect fit as a nicotine alternative without tobacco.

The Labour Government aims to tackle youth vaping rates, which have been on the rise, as well as minimise environmental harm, aligning with broader public health and sustainability goals. Policymakers are taking cues from other countries that have implemented similar bans, studying both the successes and challenges faced in those regions.

Agreeing with the previous Conservatives plan to ban disposables, but yet to see the full implications of the Tobacco and Vapes Bill, the Labour Government focused on disposables out of the door first.

E-liquid bottle being held with two small vapes devices behind it in the background

The Impact of Vape Tax

The introduction of a vape tax is another significant factor that will reshape the vaping landscape. This measure serves as both a deterrent to consumption and a revenue-generating tool for the UK government to support the NHS.

By imposing additional taxes on vaping products, governments hope to deter use, especially among price-sensitive groups such as teenagers and young adults who may be deterred by higher prices.

How Vape Tax Works

A vape tax is essentially an excise tax levied on vaping products. It increases the retail price, making these products less affordable and thereby discouraging consumption among the younger UK generation.

The tax is typically structured to target both the devices and the e-liquids, ensuring comprehensive coverage across the vaping spectrum.

On 30 October 2024, newly appointed Chancellor Rachel Reeves announced her first budget with several measures to try and stem the negative economic flow. One of those measures was to introduce a flat rate structure of £2.20 for every 10ml of e-liquid.

Implemented from 1 October 2026, this will have a significant impact on the vape, tobacco and illegal black market. Where will vapers turn to if prices steep too high?

The Market Outlook for 2025

With a disposable vape ban already in place for 1 June 2025, the vaping industry will undergo substantial changes. We are already witnessing the rebirth of the e-cigarette industry following the initial boom of single-use disposables.

Now big puff vapes which act as a workaround the current legislation of no more than 2ml pods are an excellent alternative to single-use disposables - with a more sustainable and user-friendly design. In addition, they are better for the environment and work out cheaper currently than single-use kits.

Pod style vaping device being filled up with e-liquid

Shift to Refillable Vapes

Refillable vapes, which are more environmentally friendly, will likely see a larger surge in popularity. These devices, which allow users to refill e-liquid and replace coils, produce less waste and could be less affected by potential bans.

As consumers become more environmentally conscious, the demand for sustainable vaping solutions will no doubt increase, encouraging companies to focus on developing high-quality, durable products.

This shift not only benefits the environment but also offers users a more customisable vaping experience, potentially increasing satisfaction and brand loyalty.

In addition, classic vape kits containing prefilled cartridges or pods could be set for a reemergence in the public eye. Super convenient and very easy to swap, it offers a smarter solution to single-use devices.

Black Market Concerns

As with any regulated market, there is a risk of a black market emerging for disposable vapes. Stricter regulations could drive some consumers to seek unregulated products, posing potential health risks.

The temptation of cheaper, unregulated products may look appealing to some but these products often lack quality control and can contain harmful substances.

Governments will need to introduce stricter measures on the back of the disposable vape ban and announced vape tax to hopefully prevent millions turning to illegal and dangerous vape kits and accessories.

Woman using disposable vape looking at her phone on a yellow background

Preparing for Change

Both consumers and businesses must prepare for these upcoming changes. Adapting to the evolving regulatory landscape will be essential for navigating the challenges and opportunities that lie ahead. Here are a few ways to get ready for the evolving vaping market:

    1. Stay Informed - Keep up with news regarding vaping regulations to make informed choices. A lot can happen between now and June 2025 as the disposable vape ban looms. Understanding the potential changes will help you plan your purchases and explore alternative options if necessary.

    1. Explore Suitable Alternatives - Consider switching to refillable vapes or exploring nicotine replacement therapies if you plan to quit. Exploring different cessation aids and support networks can also provide the assistance needed for a successful transition away from vaping.

    1. Keep Safe – Always check that the device, e-liquid or accessory you are purchasing looks authentic. With most modern manufacturers, they include a barcode or link to their website to check for authenticity.

    1. Businesses Must Be Prepared – Following final parliament approval, all businesses should ensure all single-use disposable vapes are sold by no later than 1 June 2025. Further updates are expected between now and October 2026 as we learn more about the flat rate vape tax. Keep an eye on this page as we continue to keep our customers informed of the latest developments.

  1. Prepare for Change to Industry Standards – As of now, all we know is that there may be changes to restrict certain vape flavours and to packaging to not entice underage vapers. This has been announced in the Budget changes alongside the disposable vape ban message but have no official confirmation yet of the exact details.

Final Thoughts

The future of vaping in the UK and globally is ready for a new era. With the anticipated disposable vape ban by 1 June 2025 and the first ever vape tax by 1 October 2026, both the industry and consumers will need to adapt.

While these measures aim to address environmental and health concerns, they also open the door for innovation and new market opportunities. There is also a clear risk that it could create an increase in demand for black market counterfeit products.

By staying informed and prepared, stakeholders can plan appropriately for these changes and contribute to a healthier, more sustainable future. Embracing these important legislations can lead to a more responsible vaping culture, where both consumer health and environmental sustainability are prioritised.


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