In recent years, the vape industry has witnessed significant growth and transformation. The latest category data from IRI reveals intriguing insights into the sales performance of vape products through various retail channels. According to the data, vape sales through unaffiliated retailers have experienced an impressive year-on-year growth of nearly 30%. Symbol group stores, on the other hand, achieved a respectable growth rate of 22.8%. However, both these channels still fall behind the multiple retail channel, which boasted a remarkable year-on-year growth of 37%. In this article, we will delve into the details of these statistics, explore the reasons behind the varying growth rates, and discuss the opportunities and challenges faced by independent retailers in the vape market.

The Current State of Vape Sales
Vape sales through unaffiliated retailers and symbol group stores, although growing at a slightly slower pace than the multiple retail channel, still account for a combined 28.2% of the traditional retail sector vape sales. Multiple retailers continue to dominate the vaping market, holding a substantial 62% market share. This dominance can be attributed to their proactive strategies and investments in the closed pod market. Closed pod systems have witnessed a significant surge in popularity, increasing their share of the total vape market from 12.5% to 31.6% within the same period, as reported by IRI. Meanwhile, the overall share of e-liquids, which are still experiencing growth, has declined from 47.7% to 39.6%.

The Success of Multiple Retailers
The success of multiple retailers in the vape market can be attributed to various factors. One notable example is Sainsbury's, which became the first multiple retailer to reposition vape products within its shop-floor healthcare aisles, thereby enhancing their visibility. Additionally, multiple retailers have been quicker to embrace closed pod systems, which have become the preferred choice for adult smokers looking to switch from combustible tobacco products. By adopting closed pod systems earlier, multiple retailers have witnessed improved sales performance in comparison to open system sales in their stores. These closed pod systems, with their convenience and ease of use, are ideal for convenience stores. Consequently, more retailers should consider making them the focal point of their vaping fixture.

Potential for Independent and Symbol Group Retailers
Despite solid growth in the vape category within independent and symbol group stores, these channels still underperform compared to the multiples. Although their sales have increased by 26%, there is room for further improvement. Closed systems accounted for just over 6% of all vaping sales through independents and convenience stores last year. However, this figure has now exceeded 28%, indicating a rapid shift in consumer preferences. While open system sales continue to dominate the sector and should remain a significant part of any vape offer, the narrowing gap between open and closed systems suggests a changing landscape. Independent and symbol group retailers have the potential to grow vape sales further by investing in display and closed pod systems.

Insights from John Patterson, Juul Labs UK Sales Director
Commenting on the data, John Patterson, the UK sales director of Juul Labs, highlighted the enormous potential for unaffiliated and symbol group retailers to further expand their vape sales. He acknowledged the positive growth seen in the past year within independent and symbol stores, as more retailers embrace the category and enhance their vape product range. However, Patterson emphasized that these channels are still underperforming in the vape category. He pointed out that closed pod systems, which currently drive 80% of the total market growth in traditional retail, have become the systems of choice for adult smokers looking to transition from combustible tobacco products. By recognizing this trend and strategically aligning their offerings, independent and symbol group retailers can tap into the vast market potential of vape products.

Conclusion
The vape market continues to evolve, with independent and symbol group retailers experiencing steady growth but at a slower rate than their multiple retail counterparts. To keep pace with the ever-changing consumer demands, independent and symbol group retailers must invest in display and closed pod systems, which are driving significant market growth. While open systems still dominate the sector, the popularity of closed pod systems is rapidly rising. By capitalizing on this trend and ensuring their offerings align with consumer preferences, independent and symbol group retailers can enhance their vape sales performance and aim for a share comparable to their tobacco sales.

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FAQs (Frequently Asked Questions)
What is the current growth rate of vape sales through unaffiliated retailers?
Vape sales through unaffiliated retailers have grown by almost 30% year on year, as per the latest category data from IRI.

How do symbol group stores compare in terms of sales growth?
Symbol group stores achieved a growth rate of 22.8% in vape sales, slightly slower than unaffiliated retailers but still impressive.

Which retail channel dominates the vaping market?
Multiple retailers continue to have the majority share of vaping sales, with a market share of 62%.

Why have multiple retailers been successful in the vape market?
Multiple retailers have been quick to invest in closed pod systems, which have gained popularity among adult smokers looking to switch from traditional tobacco products.

What is the opportunity for independent and symbol group retailers in the vape market?
Independent and symbol group retailers have the potential to grow their vape sales by investing in display and closed pod systems, aligning with the changing consumer preferences.

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