2FIRSTS | Special Report｜ Vuse Gains as U.S. Cracks Down on Illegal Vapes, But a $590 Million China Export Shadow Looms
Vuse benefited from U.S. enforcement against illegal vapes, but a surge in Chinese exports suggests a resurgence of the gray market.Summary
British American Tobacco (BAT) reported a significant improvement in Vuse’s performance in the second half of 2025, attributing it to increased U.S. enforcement against illicit vape products. FDA data indicated a potential drop in the illicit market share to 54% between February and September, creating an opportunity for Vuse to gain market share. However, this progress may be temporary, as October vape exports from China to the U.S. reached a record $590 million, signaling a potential resurgence of the gray market due to a “bullwhip effect” in the supply chain. BAT is reinforcing its regulatory position through a £1.3 billion share buyback and by pausing the rollout of unapproved products, aiming to capitalize on the trend towards stricter regulation and maintain its competitive advantage.
(Source：2Firsts)
