The vaping industry is on the cusp of significant change, with much of its trajectory dictated by the upcoming vape tax set to take effect in October 2026. While 2025 may seem like a preparatory year, the impending tax will shape consumer behaviour, business strategies, and even product innovations. Here’s what to anticipate.
How the Tax Will Influence the Industry
The new tax will add £2.20 per 10ml of e-liquid, potentially reshaping the market as businesses and consumers adjust to the increased costs. This tax is designed to discourage casual vaping while keeping smoking alternatives financially viable. However, it also brings challenges that are likely to dominate the conversation throughout 2025.
The Anticipated Industry Impact
We reached out to Juicy Vapes, one of the UK’s premier websites for vaping products, to understand how the tax might impact the industry. According to their team, a surge in demand is likely as consumers and retailers stock up on products ahead of the price hikes. This could be followed by a slower period as the market adjusts, leaving businesses to navigate reduced sales and rising operational costs.
Challenges for Businesses
For vape shops and wholesalers, the tax presents both opportunities and hurdles. A temporary boost in sales before October 2026 might be followed by reduced demand as consumers lean on their pre-tax stockpiles. Many businesses will need to rethink their pricing strategies and ensure compliance with the new regulations to avoid penalties.
Small businesses, in particular, may find the financial adjustments challenging. That’s where professionals like Towerstone Accountants can play a crucial role. Their expertise can help vaping businesses stay compliant and financially secure during this transition period.
Wider Effects on the Industry
Insights from Lillian Purge, a digital marketing agency representing multiple vaping companies, suggest the tax will have a ripple effect on the industry.
“The vaping industry already faces tight restrictions on marketing and advertising,” a spokesperson shared. “This additional financial burden is likely to lead to cutbacks in digital marketing campaigns, local promotions, product development, and even vaping expos. Smaller businesses may struggle to compete in such a challenging environment.”
Introduction of Longfills
The vaping industry is no stranger to innovation, and with the looming vape tax set to take effect in October 2026, longfill e-liquids are poised to become the next big trend. This product, already popular in countries like Greece, offers a cost-effective workaround for vapers looking to sidestep the hefty price increases that the tax will bring.
A longfill e-liquid typically comes in a 60ml bottle, but instead of being pre-mixed, it contains only 20ml of concentrated flavouring. To make the liquid vape-ready, customers add four 10ml nicotine shots, allowing them to create 60ml of e-liquid at a fraction of the cost of traditional pre-mixed options.
Why Longfills Make Financial Sense
Under the new vape tax laws, every 10ml of e-liquid will incur a tax of £2.20. This means that purchasing six 10ml e-liquids to make up 60ml could cost approximately £28.20—a significant jump from the pre-tax price of £15 for the same volume. This sharp increase will likely drive customers to seek more economical alternatives, with longfills emerging as the clear solution.
In contrast, a longfill setup under the new tax system could cost considerably less. Customers would pay around £5.99 for the 60ml bottle containing 20ml of concentrate, an additional £4 for the necessary nicotine shots, and £8.80 in taxes. Altogether, this totals approximately £18.79, offering a savings of £10 per 60ml compared to pre-mixed e-liquids.
The Market Shift
As the cost benefits of longfill e-liquids become clear, 2025 is likely to see these products dominate the vaping market. Vape companies are expected to heavily promote longfills to consumers as a smart, tax-efficient option, particularly in the lead-up to October 2026. Retailers will likely stock an expanded range of longfill options, pairing them with nicotine shots and accessories to create attractive bundle deals.
For consumers, this shift will mean more flexibility and customization. With longfills, vapers can tailor their nicotine levels to their preference, mix their own e-liquids at home, and still save money—all without sacrificing quality or flavour.