Efforts to regulate nicotine vaping products in both the United States and the United Kingdom are inadvertently driving consumers into illicit markets. While the U.K. had previously supported vaping as a harm reduction tool, recent policy shifts signal a departure from that approach. Meanwhile, the U.S. continues to struggle with a largely unregulated market due to restrictive authorization policies by the U.S. Food and Drug Administration.
Regulatory Approaches and Their Consequences
The U.K. has historically regulated vaping products with safety standards and low taxation to encourage smokers to switch to less harmful alternatives. However, it is now implementing a ban on disposable vapes set to take effect in June 2026.
This move, along with restrictions on larger refillable vape tanks, has already started pushing the vaping market underground. Recent research indicates that the illicit vape trade in the U.K. surged from negligible levels three years ago to 31% of the market as of February.
Conversely, the U.S. has taken an enforcement-heavy approach, failing to authorize the vast majority of vaping products and flavors. The FDA has only approved a small number of products, predominantly in tobacco flavor, leaving thousands of popular alternatives in legal limbo.
This has resulted in a thriving black market, writes Economist Roger Bate with Filter. A market research study by WSPM found that an overwhelming 97% of discarded vaping packages in several U.S. states were unauthorized products.
Impact on Retailers and Consumers
For U.S. retailers, the crackdown has led to significant uncertainty. Several Philadelphia-area convenience store owners reported pulling products from their shelves due to FDA warnings, despite some generating over $2,000 per week in vape sales. One store owner who complied with regulations was left selling only three brands—all from major tobacco companies.
Meanwhile, unauthorized vape sales are shifting to unregulated vendors, including street sellers and flea market traders. One such vendor reported making over $700 per week from disposable vape sales, a stark increase from the previous year.
As regulatory expert Clive Bates pointed out regarding the U.K. market, many consumers prefer products with larger tank sizes—which are currently illegal. The restrictions risk pushing people away from safer nicotine alternatives and back to combustible cigarettes, which remain widely available despite their well-documented health risks.
Policy Failures and Public Health Risks
The consequences of these policies are already becoming apparent. In the U.K., new evidence suggests that smoking rates are rising for the first time in 20 years, likely linked to the crackdown on vaping. Meanwhile, in the U.S., the FDA’s restrictive policies and enforcement actions have created a confusing and unstable market, forcing many consumers toward illicit products with no quality control or age restrictions.
Experts warn that regulatory missteps on both sides of the Atlantic are undermining harm reduction efforts. Instead of outright bans or excessive restrictions, a balanced approach that encourages legal, high-quality vaping products should be the goal. Marty Makary, the incoming head of the FDA, has an opportunity to correct course by accelerating the approval of safe, regulated vaping products.
In the U.K., rolling back the ban on disposable vapes and returning to a harm reduction-focused policy could prevent further growth of the illicit market. Without adjustments, both countries risk increasing cigarette consumption—the very outcome vaping regulations were meant to prevent.
