The All-Ukrainian Association of the Electronic Cigarette Market (VARES), together with the analytical company Pro-Consulting, presented the results of the first comprehensive study of Ukraine’s electronic cigarette market during a press conference at UNIAN.

During the presentation, the Association addressed several common misconceptions about vape consumers. While they have often been associated primarily with young people aged 18–22, the study shows that the average consumer is actually 30 years old. The findings also do not support the claim that vaping is the first nicotine product used by most consumers.

Before starting to use electronic cigarettes, 70% of respondents had already smoked traditional cigarettes. This indicates that electronic cigarettes are predominantly used not as an entry point into tobacco consumption, but as a product to which consumers switch after having experience with traditional tobacco products.

### Disposable electronic cigarettes do not dominate the market

In fact, only 18% of consumers use disposable electronic cigarettes. By contrast, 82% use reusable vaping devices, confirming the dominance of this segment in the Ukrainian market.

This distribution is also important from an economic perspective, as reusable electronic cigarettes represent the greatest potential source of VAT revenues. At the same time, this segment is not separately tracked by the state, and the government does not have complete data on its sales volumes. As a result, it is difficult to accurately assess both the actual size of the segment and its tax revenue potential.

### 70% of consumers purchase e-liquid in physical stores

Marketplaces account for only 10% of purchases. Websites represent 9%, while Telegram and Instagram account for 8% and 3%, respectively. The findings indicate the existence of a large and well-established offline market with a high level of physical availability of these products.

This confirms the need for public policy to focus on legalisation, proper registration and effective oversight of the physical retail network as the primary sales channel.

### How consumers will respond to price increases

A total of 73% of consumers would look for cheaper offers, reduce their consumption or switch to other products. Only 27% are prepared to pay more for the same product.

Higher consumer prices would create additional incentives to move towards illegal sellers, which already dominate the market. This would result in further expansion of the shadow market, a reduction in the share of the legal sector and, consequently, lower-than-expected tax revenues for the state budget.

### Key factors influencing e-liquid choice

Flavour is the primary factor in choosing e-liquid for 85% of consumers, while 64% identified quality as an important consideration. If fruit and sweet flavours were removed from the market, most consumers would not stop using electronic cigarettes: 43% would instead seek alternative purchasing channels, indicating a significant risk of further demand shifting towards the illegal market.

According to VARES Chairman Andrii Solomin, these findings should be taken into account when shaping future regulatory policy.

“In 2025 and the first half of 2026, VARES member companies paid UAH 176.62 million in taxes and other mandatory payments. This is the contribution of a relatively small number of companies operating legally,” Solomin said.

At the same time, according to VARES estimates, the state budget could receive up to UAH 3.82 billion in additional revenues in the first year alone through the de-shadowing of the industry and the introduction of effective regulation of nicotine circulation.

The Association therefore believes that further regulation should be aimed at expanding the legal market, strengthening control over the circulation of nicotine-containing components, and creating a regulatory model that ensures predictable budget revenues while reducing the economic incentives that sustain the illegal market.

The press conference was attended by VARES Chairman Andrii Solomin, Head of the Analytical Department at Pro-Consulting Yuliia Shkurko, Deputy Chairman of the Independent European Vape Alliance Umberto Roccatti, and Chairman of the Independent British Vape Trade Association Marcus Saxton.