Picture This: Tobacco Product Supply Chains Shift on Tastes, Regulation

What we know

The World Health Organization is calling for an end of flavored tobacco products to safeguard young people from addiction and disease while other countries have started to ban the use of vapes. The latest country to curtail access to disposable vapes was the UK, with a ban that came into force in June 2025 in an effort to both protect young people’s health as well as the environment.

Europe was the major importer of vape liquids and electronic cigarettes in the first quarter of 2025, accounting for 59.3% of global imports, followed by Japan, and the US. The largest global producers and exporters of those products in the first quarter of 2025 were mainland China, followed by Europe. Mainland China’s largest customer was the US, while European producers sent more than 80% of products to Japan. 

Why this matters

The effect of such bans might already be showing in global trade data. In 2024, total merchandise trade in electronic cigarettes declined by 16.8% in value terms compared to 2023 while trade of vape liquids—containing nicotine or tobacco—declined marginally by 0.9%. Meanwhile, total trade of regular cigarettes increased by 4.6%.

While trade with tobacco products has declined, associated smoking accessories such as lighters give a clearer picture of changing smoking habits. Trade of lighters decreased by 12.6% comparing 2024 to 2023. Rolling paper and smoking pipes lost 71.3% and 11.9% in market trade comparing the same time.

On the other hand, demand for trade of nicotine skin patches and lozenges is growing, indicating a pivot to seemingly more health-conscious products.

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.