LONDON, U.K.: Despite regulatory efforts, unauthorized disposable vapes continue to dominate a significant portion of the U.S. e-cigarette market, with sales reaching approximately US$2.4 billion in 2024, according to private retail data reviewed by Reuters.

Flavored disposable vapes accounted for 35 percent of all e-cigarette sales in outlets such as convenience stores and supermarkets. The data, compiled by market research firm Circana and provided by an industry source, highlights the scale of the illicit vape market that remains largely unchecked.

Sales figures suggest a decline from $3.2 billion in 2023 to $2.8 billion in 2022. However, Circana declined to comment on the data, as it is not publicly available.

The U.S. Food and Drug Administration (FDA) has only approved 34 tobacco- or menthol-flavored vape products for legal sale, all from major tobacco companies like British American Tobacco (BAT) and Altria. Yet, thousands of unauthorized products—including flavors like "cookie and cloud" and "magic cotton candy"—continue to flood the market.

Circana estimates the total U.S. vape market, including both authorized and non-disposable products, was worth $6.8 billion last year. While the sales of flavored disposable vapes have shrunk by 25 percent since 2023, they still represent a major portion of the industry.

The persistence of illicit vape sales has prompted concerns from major tobacco companies. Altria, which has seen its legal vape sales decline due to competition from unauthorized products, estimated the overall U.S. vape market grew by 30 percent in 2024.

"Driven entirely by illicit products," Altria CEO Billy Gifford said at a conference on February 19.

FDA enforcement actions have had some impact, with previously top-selling brands Esco Bars and Elf Bars dropping out of the top 10 most-sold vapes after import bans in 2023. However, new brands have quickly emerged to replace them, illustrating the ongoing challenges regulators face in curbing the illegal vape trade.