The e-cigarette trade in Europe reveals a large “smoky” part that escapes the controls of the authorities. Almost half of the market (48%) recorded in the EU was defined as irregular, with products not complying with the rules and an estimated value of 6.6 billion euros. In practice, one in two e-cigs comes from non-compliant circuits.
The phenomenon mainly concerns devices and liquids sold online or imported from non-European markets, without respecting the rules established by EU directives on products containing nicotine.
The underground parallel market for electronic cigarettes in Europe
In recent years, electronic cigarettes have established themselves as the most widespread alternative to traditional tobacco. These devices work by vaporizing a liquid that may contain nicotine, flavors, and other chemicals. The success of vaping is also linked to the ease of online purchasing, behind which over time a parallel market that is difficult to counter has hidden and developed.
According to a study carried out by the German Fraunhofer IIS institute, a significant share of e-cigs on the European market do not comply with the regulatory requirements established by community legislation, such as limits on nicotine concentration and obligations on product traceability.
How much is the irregular e-cig market worth?
The data released by analysts highlighted a worrying picture. Without more effective interventions and controls, the value of the illegal market could rise from the current 6.6 billion to over 10.8 billion euros by 2030. In Germany alone, the loss of tax revenue between taxes and controls for 2024 exceeded 119 million euros.
Irregular products are goods that violate national tax regulations, labeling requirements or approval rules, or whose origin cannot be clearly established. 35% of the total e-cigs traded are undoubtedly linked to the illegal market, while 13% of imports concern private sales of non-compliant or untaxed devices.
Where do irregular e-cigarettes come from
A substantial part of the e-cigarettes sold in Europe comes from non-European markets. With a clear preponderance: 90% of the devices come from China, the main global production center for devices for tobacco users. The EU Commission has estimated that in 2025 around 12 million packs of electronic cigarettes arrived in Europe per day, a number significantly higher than the volumes recorded in the previous two years.
Approximately 72% of Mandarin e-cigarette production is concentrated in the metropolis of Shenzhen. From there, e-cig shipments leave for the main European distribution hubs of Belgium, Germany and the Netherlands.
Subsequent deliveries take place mainly by road, and it is precisely at this point in the logistics chain that controls are mostly circumvented. The portion of non-compliant e-cigs is distributed equally in the other member states and the related taxes are avoided. All in a period in which, in Italy and around the world, the price of classic cigarettes has increased quite a bit.
What are the irregularities related to electronic cigarettes
This does not mean that all Chinese e-cigs are illegal, but undoubtedly a significant portion enters the European market without respecting the standards required by EU regulations. The most frequent violations include:
- nicotine concentrations exceeding the established limits;
- absence of controls on the composition of liquids;
- lack of product traceability;
- sales through unauthorized online platforms;
- non-compliant labeling.
