The biggest development for the vape segment in 2024 was basically no change to the slow rollout of premarket tobacco application (PMTA) decisions. As of December 2024, the Food and Drug Administration (FDA) had granted only 34 market orders, mostly for disposable e-cigarettes, which have been excluded from the federal flavor restrictions.
Rather, more states set out to mandate databases of authorized flavored vape products to clarify confusion. More than 24 registry laws were proposed last year, with six states gaining governor signatures. However, both Utah’s and Iowa’s enactments, which were supposed to begin this year, have been put on ice for the moment pending the outcomes of lawsuits. Utah stores are still able to sell vape products not on the list until a legal decision is reached. In Iowa, an early March hearing is slated for the courts for additional motions.
“While some sort of list of authorized or provisionally authorized products will be necessary, presently, the hurdles to marketing granted orders are still too high for most manufacturers. I expect to see a greater push for directory laws during the 2025–26 sessions,” said Alex Clark, CEO, Consumer Advocates for Smoke-free Alternatives Association.
Additional flavor bans at the state and municipal levels still pose issues for the vape sector in c-stores.
“We are now one year into a flavor ban in Columbus, Ohio. While we are waiting for this to be overturned and hopeful it will be this year, we continue to see a decline in sales. Flavored tobacco customers can cross city and municipality lines and purchase these items outside of Columbus. It has had a negative impact not only on this category, but other categories within these impacted stores,” said Nathan Arnold, director of marketing for Heath, Ohio-based Englefield Oil.
Sales data from Circana shows vaping products declined in dollar and unit sales by 9.1% and 12.3%, respectively, in 2024. Interestingly, the vaping accessories subcategory experienced a bump in both sales gauges (18.6% and 30.8%, respectively). The cross functionality with cannabis vaping could be a contributing factor for this positive performance.
Additionally, last year saw a greater push on enforcement. For example, a multiagency federal task force seized an estimated $76 million worth of illegal imports of unauthorized e-cigarette products last fall.
Perhaps the biggest market influence on vape sales right now comes from modified-risk offerings.
“I’m not sure if the recent market authorizations for ZYN will accelerate adoption of nicotine pouches, but that may be something that cuts into the relative dominance of vaping. The popularity of nicotine pouches continues to grow, and I think more and more people who smoke are going to turn to them as they move away from cigarettes, or start looking for alternatives they can use in smoke-free/vape-free areas,” said Clark. “I’ve always seen the two products as complementary and I’d like to see more e-liquid companies entering the category.”
