Vape sales surged ninefold over three years and generated four times more profit than tobacco sales for convenience stores. Photo credit: SmileSmith25, CC4.0.
Vapes have become significantly more lucrative for convenience stores than tobacco, generating four times the profit as sales of vaping devices surged ninefold over three years, a study reveals.
Research from the University of Edinburgh (UoE), analyzing data from September 2022, shows that convenience stores earn an average profit margin of 37.1% on vape products, compared to just 8.5% on tobacco items.
The average weekly number of store transactions involving vapes skyrocketed from 10 in 2019 to 93 in 2022, marking a nine-fold increase over three years.
Researchers suggested that vape sales have likely continued to rise for small retailers beyond 2022.
In contrast, foot traffic generated by tobacco sales declined sharply, dropping nearly 40% in small retail outlets compared to less than a decade ago. According to the UoE, 21% of transactions included tobacco in 2015, as reported by Action on Smoking and Health (ASH), but this figure fell to just 12.8% by 2022.
The UK Parliament is debating the Tobacco and Vapes Bill, which includes a progressive ban ensuring that anyone born on or after January 1, 2009, will never be legally permitted to purchase tobacco, as the minimum smoking age will increase incrementally over time. The bill also introduces measures to restrict sweet vape flavors and redesign e-cigarette packaging to make it less enticing to younger users.
A major focus of the legislation is tightening advertising regulations. It proposes a complete ban on vape advertising and sponsorship, extending restrictions to public displays on buses, in cinemas, and in shop windows, aligning vaping rules more closely with those for tobacco products.
As part of environmental reforms, disposable vapes will be banned from June 2025. Additionally, the sale of vapes through vending machines and the free distribution of these products will be prohibited.