Global Governments Weigh Restrictions As Vaping Industry Faces Regulatory Uncertainty

As concerns rise over the increasing use of vapes among non-smokers and the younger generation, the vaping industry is facing potential regulatory scrutiny. Governments worldwide are contemplating restrictions on disposable vape sales, putting the future of the industry in limbo.

What Happened: A recent report shed light on the growing popularity of vaping over the past decade, with health organizations endorsing it as a better alternative to traditional smoking. However, the industry is now bracing for potential regulatory interventions, according to a CNBC report. 

Marcus Saxton, the CEO of UK-based vape company Totally Wicked, estimated that the vaping market is worth between $3 to $4 billion. He suggested that the black market could account for up to two-thirds of this figure.

As cigarette sales revenues decline, tobacco companies are turning their attention to the growing vape market. Owen Bennett, a global researcher in tobacco and cannabis equity at Jefferies, said, “The traditional cigarette model, particularly in terms of volume decline, was facing increasing pressure.”

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As of October, 28 countries have prohibited e-cigarette sales, while nations like the U.K., Germany, France, Ireland, and Belgium are contemplating bans on disposable vapes. However, implementing such regulations may pose significant challenges.

Jasmine Khouja, a senior research associate at the University of Bristol’s Tobacco and Alcohol Research Group, noted, “What we’ve seen in America is that [vaping] has kind of plateaued, and I think it’s starting to reduce a little bit as well.”

Why It Matters: The vaping industry has evolved significantly over the years, with a shift towards smokeless consumption methods like vaping. However, the industry is now under the scanner due to increasing health concerns and potential regulatory interventions.

In April 2021, the U.S. Congress passed the Consolidated Appropriations Act of 2021, including a vape mail ban. This move shows the rising scrutiny of the industry, which could potentially impact its future growth.

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Image Courtesy: Shutterstock

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