Fraunhofer study shows: Vapes – a billion-dollar market with a dark side
A new Fraunhofer study commissioned by SKR AG shows how complex global supply chains and inconsistent national regulations have led to the development of a shadow market for e-cigarettes worth billions. A lack of transparency along the supply chains makes control and market supervision difficult – with consequences for logistics, trade and consumers.
48% of all e-cigarettes – irregular!
Almost every second e-cigarette in Europe comes from irregular sources. That does not always mean illegal – but the boundaries between the gray and black markets become blurred when national regulations diverge. This is precisely where the Fraunhofer study comes in: it shows how tax loopholes and a lack of harmonization fuel the shadow market.
Around 90% of e-cigarettes come from China
China dominates the global e-cigarette market, especially the Shenzhen region. Around 72 percent of all vaping devices worldwide are developed and produced there before entering the market via European gateway countries such as Germany, Belgium, and the Netherlands. Open-tank e-cigarettes worsen illicit trade, making compliance and liquid quality harder to enforce, raising risks for consumers.
Irregular vapes: 6.6 billion euro market volume
A market worth billions – and millions in losses for governments. Irregular products are defined as gray and black market products that violate national tax regulations. 35 percent of the irregular e-cigarettes can be clearly attributed to illegal trade, around 13 percent are private imports of unapproved or untaxed products.