Tag Archives: white label e liquid manufacture

Avoiding Confusion with Nicotine-Free Disposables Legality

Zero-nicotine disposables are growing in popularity, but some stores are worried to stock them.

Disposable vapes are a perfect first step for many vapers as they offer a convenient and simple way to vape. Recently, some brands have branched out into developing 0mg nicotine disposables which provide all the flavour but without nicotine. But there have been reports of retailers being hesitant about stocking these sorts of devices.

Local shops refusing to stock nicotine-free disposables – why the confusion?

It seems there’s been some confusion with nicotine-free vaping products as some stores in the UK show hesitancy with stocking them. BetterRetailing reported that stores were refusing 3,500 puff nicotine-free devices with tank capacities above 2ml. Not all zero-nicotine disposable vapes offer such a high puff count, but many are beginning to do so.

So, why the confusion? By now, most are aware of what is TPD compliant (the UK regulations for vaping products). When it comes to disposable devices, we know that the E-Liquid capacity should be no more than 2ml which means they are usually capped at 600 puffs (650 at a push). And with recent store raids tackling illicit vapes that are not TPD compliant, it’s not hard to see why some stores are turning away these 0mg devices.

However, TPD guidelines are restrictions for nicotine-containing products, and thereby nicotine-free devices are exempt from these rules. Much like how shortfill E-Liquids are exempt from the restrictions which is why they can be larger than 10ml (the max capacity for nicotine-containing E-Liquids). Nicotine-free disposable vapes, if they contain no nicotine whatsoever, are legal in the UK at higher puff counts and capacity.

You can find more information on compliance with disposable devices in the UKVIA's guide.

The pros and cons of zero nicotine disposables

Nicotine-free disposables are yet another part of a vaper’s quit-smoking journey. Although they won’t help with quitting tobacco at the beginning, many vapers find that over time, they lower their nicotine strength after vaping for some time.

Since nicotine is an addictive substance that many want eventually to also quit, 0mg vapes are the perfect solution for vapers at the last leg of their quitting journey. These types of devices allow vapers to enjoy their favourite flavours and vaping experience without the addictive nicotine.

Zero-nicotine devices also allow for a smoother vape due to a lesser throat hit with the absence of nicotine.

Why retailers should consider stocking 0mg devices

As we mentioned, zero nicotine vapes are perfectly legal in the UK, including those at higher puff counts and tank capacities – so long as it is confirmed they are 0mg. No nicotine disposables offer a final stepping stone for vapers to quit nicotine whilst still enjoying their favourite brand or flavours. Vapers who already vape at low nicotine strengths can opt to use these nicotine-free devices as a means of quitting nicotine.

They are also suitable for casual smokers who may not need the nicotine hit as much as heavy smokers, but still struggle to quit because of the habits created by smoking. As vaping mimics, the motions of smoking a cigarette, these sorts of devices could be of benefit to light/casual smokers to quit cigarettes.

Vape retailers who can cater to a smoker’s quitting journey from start to finish may see greater customer loyalty and retention.

White label and OEM zero-nicotine products

Here at Xyfil we produce and manufacture a variety of E-Liquids for brands that range from our award-winning Nicotine Salts to premium Freebase Nicotine, to nicotine shots and nicotine-free E-Liquids. Our quality formulas and flavours continue to win awards across the vaping industry and with our white label manufacture, you get access to our existing, premium combinations. And even better, you can request these as 0mg to create shortfills or your own zero-nicotine disposable devices.

Or speak with us about our OEM opportunities for creating a bespoke range of no-nicotine disposables. With full flexibility throughout the entire process, we can help you go from idea to shop floor. Contact us today to start on your next range.

Vaping Confirmed At Least 95% Less Harmful Than Smoking

Back in 2015, it was first announced by Public Health England that their review on vaping proved it to be 95% less harmful than smoking. Since then, there have been countless studies and claims that have tried to undermine these findings. And now the Office of Health Improvement and Disparities (OHID) has released an evidence review.

Overall conclusions from Nicotine Vaping in England 2022 update

One key finding that was noted in the review, was the level of toxicant exposure in biomarkers. The evidence suggested significantly lower exposure to harmful substances from vaping compared to smoking, as shown by biomarkers associated with the risk of cancer, and respiratory and cardiovascular conditions.

Not only this but short-term second-hand exposure showed no significant increase of toxicant biomarkers among those who did not smoke/vape.

Thereby the findings confirmed that in the short and medium term, vaping poses a small fraction of the risks of smoking, but is not completely risk-free, particularly for those who have never smoked.

An important note raised in the review was a call for standardisation and consistent methodologies for future studies. Currently, many studies focus on vapers who are ex-smokers, and evidence can be interpreted without considering these implications.

Youth vaping – an issue for all involved

The review also makes a note of the prevalence of youth vaping in England. A 2022 survey from ASH-Youth on 11-18 year olds, noted that the smoking prevalence had grown from 4.1% in 2021 to 6%, a change from 6.7% in 2020.

Vaping prevalence in youth was recorded at 4% in 2021 and has since doubled to 8.6% in 2022. This included occasional and regular vaping. Importantly, the majority of young people who have never smoked also reported not vaping (98.3%).

Although the numbers are still low in comparison to other countries that have noted issues with underage vaping like the US, it is a creeping number that we should be aware of. There is much work to be done by the government, retailers and brand owners to ensure that vaping products remain out of young people’s hands.

What the vapers want

It should come as no surprise that the review noted an increase in the disposable device uses with 15.2% using them in 2022 compared to 2.2% in 2021. Despite this, tank-type vape products remained the most commonly used for those looking to stop smoking.

Flavours remained the same preference as in previous years with fruit flavours ranking the highest, followed by mint and menthol. The review did also note that there is limited evidence that some flavours have the potential to alter cellular responses (from animal and cell studies, not tested in humans), but less than what is seen with exposure to tobacco smoke.

It was also noted in the review that vaping products typically provided lower nicotine levels than that of smoking. Perhaps this may raise discussions on the topic of increasing the nicotine strength cap in the UK (which currently stands at 20mg).

The importance of knowledge and perception

The review stated that there is a strong need for inaccurate perceptions of vaping to be addressed. This is due to only 34% of adults in 2021 accurately believed vaping is less harmful than smoking. Similarly, only 11% of adults who smoked, knew that none or a small amount of the risk of smoking, was attributed to nicotine.

Clearly, there needs to be more work in raising perceptions and communicating the accuracy of information about the relative harms of vaping.

In conclusion, this new update from the government is a welcome addition to the vaping industry’s arsenal. There are still many arguments to be had with those who wish to be rid of vaping products, but this review only continues to solidify the evidence that vaping is less harmful than smoking.

Keep in the loop with Xyfil and the latest news in the vaping industry by watching out Info Hub.

Could CBD Vapes Become the Most Popular Way to Vape?

The vaping industry continues to boom in the UK and overseas, but is there a dark horse hiding within a different industry?

CBD too has risen in popularity over the last few years, no doubt due to the pandemic when demand spiralled higher than expected. Tying the two expanding industries together seems only natural but the potential of CBD vapes is still relatively untapped.

Part of this is likely due to not enough research and hesitation in suggesting any medical benefits until such a time as numerous pieces of evidence, support it. But research is well underway with many clinical studies ongoing with promising results on the horizon.

How popular are CBD vapes?

Although CBD oral drops and edibles remain the most popular methods of taking CBD, vaping is beginning to be recognised for its worth.

Vaping is continuing to receive positive pushes from experts who recognise that it is much less harmful than smoking. Including recent research that once again confirms vaping is at least 95% less harmful than smoking. The only thing stopping the vaping industry from truly booming has been misinterpretations from the populace thanks to media scaremongering. There’s hope that with the continued approval of vaping in the UK, more may be interested in trying CBD vapes and for good reason.

Much research has already shown that CBD vape products offer the highest bioavailability (the amount that is actually absorbed) of any CBD product. Vaping CBD is certainly the best method for taking CBD thanks to this, its convenience and ease plus the variety of flavours and strengths available within the territory. CBD vapes, especially disposable vape pens, are incredibly beginner friendly making them a great starting point, as well as a means for taking CBD with you on the go.

What’s more, CBD vapes are beginning to be used as a smoking cessation tool. It comes after some evidence has come to light regarding CBD as an alternative to nicotine without addiction. Vaping generally is seen as quite an effective smoking cessation tool with recent studies noting most who quit smoking used vaping as their method to quit. With more research, perhaps CBD vapes could begin to compete with traditional nicotine vapes for smokers looking to quit.

What does the CBD industry look like in the UK?

In general, CBD has seen explosive growth in the UK with the market expanding 3-6 times more than previously estimated. And British CBD sales have increased 228% after the lockdowns. It shows how far CBD products have come that they are now readily available in many high street chains and supermarkets.

Currently, it is estimated that the CBD market will triple to over £1 billion by 2025.

Are CBD vapes popular outside of the UK?

The legality of CBD outside of the UK varies from country to country. Most European countries have legalised CBD, but some have not. Countries that have legalized CBD include:

  • Spain
  • Netherlands
  • Austria
  • Czech Republic
  • Luxembourg
  • Italy
  • Switzerland
  • Estonia
  • Finland
  • Malta
  • Lithuania
  • Sweden
  • France

Currently, the market leaders for CBD are the US, closely followed by the UK, but globally, the market is valued at $4.9 billion in 2021 and projects to rise to $47.22 billion by 2028. What we know is that demand for CBD is high, and even more so for high quality products.

With the increase in popularity, more attention has been thrown onto the lack of regulations surrounding CBD, and so consumers are becoming more knowledgeable about CBD quality. This means for products to do well, they must be high quality, safe, in demand and at a good price point.

How Xyfil can help

As a leading CBD and E-Liquid manufacturer, we have unique expertise in both industries that has helped us to combine them into creating award-winning, high-demand CBD vape products. We are able to translate our knowledge and expertise into white label CBD offerings for CBD vape juices and CBD disposable vape pens.

With a choice of high strengths, CBD Isolate (with the option to add terpenes to the mixture), we can help you manufacture CBD vaping products that will fly off shelves. Combining our high-quality CBD Isolate with award-winning flavours help to create devices & vape juices that are sought after.

We also produce a wide variety of other CBD products including CBD oral drops, lotions & balms, and more. By using our white label CBD manufacturing offerings, you get access to our expertly crafted products and curated formulas. You can also choose to create completely bespoke CBD products with us.

Get in contact today to find out how we can help you develop your latest CBD product.

How Black Friday Has Evolved in the UK – Plans for 2022

Most know Black Friday as the day of amazing sales that mark the start of Christmas shopping. But over the years Black Friday has changed and no longer is it restricted to just the US.

Originally in the US, Black Friday was named for the financial crash in 1869 but was later coined as the day after Thanksgiving. At first Black Friday held a negative connotation as it was often used to label the Friday after Thanksgiving when there were staff shortages or other issues. But it was regarded as a sales point in the 1950s when it was used to refer to an influx of shoppers the day after Thanksgiving.

Since then, it’s only given rise to the Black Friday movement as becoming a sale-orientated promotion.

Black Friday in the UK

On the flip side, in the UK, Black Friday was still used as a way for the Police and NHS to refer to the Friday before Christmas when there tends to be an influx of emergencies. So, when US-based companies like Amazon and Asda began to hold Black Friday-style promotions, there was an initial worry about the negative connotations behind the name.

It did little to dissuade customers in search of discounts however as it’s quickly grown to outpace the Boxing Day sales which predominantly in the UK, was the most profitable sales day for retail.

The evolution of Black Friday

In the retail world, Black Friday started to become a race between competitors. Who could launch their Black Friday deals first and who could offer the best deals? And as many Black Friday deals moved online with online retail booming during recent years with the pandemic, the ease of creating online promotions allowed for retailers to expand from a day of sales to a week of sales.

Now there are retailers who have Black Friday offers throughout the entire month of November. With pre-Black Friday offers and Black November offers, it’s easily become one of the biggest promotions in the UK.

Before the boom in Black Friday promotions that now can range the entire month, the start of Winter sales was the Black Friday weekend. The shift to longer promotions, it’s made the previous retail calendar somewhat obsolete. Retailers instead have noticed that customers tend to shop earlier/before the holiday season, potentially giving rise to a preference for Black Friday promotions over Boxing Day sales.

With Black Friday sales now lasting longer, retailers have also had to action plans for helping to retain shoppers’ interest. Rather than offering blanket-wide savings across their stores, intermittent offers or promoting product categories on specific days/weeks, help to keep customers interested.

How you can prepare for Black Friday 2022

Stock is going to be one of the most important things to have in mind with your promotions. The last thing you want is for your offers to run out of stock too quickly. Ordering now and getting ahead is best not only for you but for your manufacturer.

Around this time E-Liquid manufacturers will be receiving orders for Black Friday stock and to be able to meet demand, they will need to know the full extent of the demand. This year (2022), our cut-off for Black Friday products to be delivered before the day is September 30th.

When planning your Black Friday offers this year, you may want to take the current inflated cost of living, into consideration. This could potentially mean your standard customers have less disposable income to spend. For the vaping industry, it could mean that marketing around Black Friday is tailored to highlight the savings to be made for those swapping from smoking to vaping.

Although online sales have been booming thanks to the pandemic, customers have been returning to the high street in favour of shopping in person. But there has been a decline in this with the recent cost of living crisis. It’s important to ensure that stores also offer promotions, and offering in-store exclusive offers may help to entice more back to your stores.

If you are looking to stock up before the Black Friday rush, make sure to place your order before the 30th of September, to get your order before Black Friday.

Latest Updates on Vaping Trends in the UK

ASH (Action on Smoking and Health) have recently released its newest update on adult vaping in the UK. These annual reports help to shed some light on the trends we can see in the vaping industry and could potentially help companies meet future customer demands.

Use, awareness, and attitudes to E-cigarettes

One of the keynotes from the update shows that there are now 4.3 million people who vape in the UK. That’s an increase from 3.3 million in 2020. Most current vapers are ex-smokers (57%) with the proportion peaking in 2021 (64%), potentially due to the pandemic which reinforced health concerns.

Only 8.1% of vapers had never smoked before. It also seems that the proportion of adult smokers who have never tried E-Cigarettes is continuing to decline. The good news continues as the proportion of smokers who are current vapers has increased since 2021 from 17% to 22%.

The main reason given by ex-smokers for vaping has continued to remain the same as in previous years, with 29% using vaping as a means to help quit. After that, the most common reasons are to prevent relapse, because they enjoy the experience and to save money. Similarly, smokers predominantly said they vaped to help cut down on smoking, save money, help quit and to prevent relapse.

Worryingly, there is still a trend of smokers believing that vaping is equally or more harmful than smoking, showing clear signs that the industry and experts need to continue to push vaping advocacy. A third of smokers still incorrectly believe this notion.

What are the most common vaping products used

As in previous years, refillable E-Cigarette devices remain the most common amongst current vapers, with 65% using these as their main device. This includes vapes with replaceable pods (17%) and disposable vapes (15%).

Unsurprisingly, disposable vapes have risen in popularity, particularly amongst 18–24-year-olds. Around 48% of current vapers use disposables as their main type of device in 2022, a whopping increase from 2.8% in 2021.

Our thoughts for the future of vaping

While disposable devices have undoubtedly become one of the most popular devices this year, it is likely that this will shift in the coming year. With talks of sustainability and cracking down on underage vapers, disposable devices may very well begin to wane in popularity, or at least in suitability.

With the ongoing cost of living crisis in the UK, disposable vapes quickly become an expensive means of vaping compared to traditional refillable tanks or pod kits, so we could see a shift in this direction. Especially as more pressures are put on companies to ensure environmentally sustainable methods are met. Even now, some prominent disposable vape brands have started turning to pod kits in response to more environmentally friendly vapes.

As the Smokefree 2030 deadline grows closer the government may step up on vaping advocacy as well as continue to crack down on illicit and illegal vapes. We hope that the UK continues to recognise the importance of vaping as a means of smoking cessation.

New Progressive Vaping Laws in the Philippines Welcomed

Vaping regulations change each year and differ around the globe. Some countries offer much tighter restrictions than others, and some regulations change to the detriment of vapers. However, the recent moves from the Philippines government have been welcomed by vaping activists.

Earlier in the year, legislation was proposed to make changes to the vaping laws in the country, and as of July 25, the bill became law.

What is the updated law for vaping now?

The most important takeaway from the updated law is that it legitimizes the use of vapes as a means for quitting smoking. This helps put the Philippines in line with most of Europe, setting them apart as one of the very few Asian countries to have reasonable vaping regulations.

The new laws allow for nicotine strengths of up to 65mg/ml (6.5%) and lowers the legal age of purchase from 21 to 18. These of course offer great benefits for customers who feel the need for higher strengths and help introduce aid for smokers aged 18-21.

In the Philippines, the legal age for buying cigarettes had always been 18 meaning that until this legislation changed, young smokers had at least 3 years of smoking before being able to legally purchase vapes. The hope is therefore that these changes will help 16 million smokers in the country, including the youngest adult smokers.

These changes also include restrictions on where vaping products can be sold and penalties for stores and online retailers for selling to minors. In a move similar to the UK and Europe, they have also restricted advertising with social media influencers and celebrities.

Another slight change to the laws revolves around flavours. Although the law does not ban flavours outright (a ban on flavours other than menthol and tobacco already exists), it prohibits labels and advertising that use flavour descriptors that may appeal to minors. This includes wording such as those relating to fruit, candy, desserts or cartoon characters.

One of the biggest changes is the change in the authority of who manages vaping. Rather than the FDA, the Department of Trade and Industry (DTI) will have control over the regulations on vaping and heated tobacco products.

The politics behind the changes

At the time of the bill first being introduced, there were some parties who disagreed with the proposed changes including the Philippines Department of Health. However, the FDA had previously angered many after it was revealed that American billionaire Michael Bloomberg attempted to influence Philippines policies with money sent to anti-vaping groups.

The bill was also under review at the same time as the presidency began to change hands, suggesting that possibly it flew under the radar.

Here's hoping that the Philippines continue to trial the new regulations and allow time for them to work, without bending under opposition that aims to oppress vaping as a quit-smoking tool.

The impact of the law changes on manufacturers and brands

As part of the improved regulations, the importation, manufacture, sale, packaging and distribution have also been overhauled. These have been brought in line with internationally accepted standards. But there are still some regulations that brands need to be aware of if they wish to take their products to the Philippines.

For one, the flavour ban restricts vape products to menthol and tobacco flavours only. These also cannot be labelled with fruity/candy/dessert names. Therefore, brands should be careful of product labels, flavour names and flavour descriptions.

Although some tobacco flavours may have naturally fruity tones, they should not be used as a descriptor. With the change of the legal vaping age from 21 to 18, age restriction labels on products will also require updating.

How Xyfil can help E-Liquid brands as a Toll Manufacturer

We pride ourselves in being able to help you through any and every step of the process, from concept to shelf. Whether you’re new to the business and want to take your first steps into creating an E-Liquid brand, looking for an E-Liquid manufacturer in the UK to develop your products, or have an existing product that needs some re-work. We’re here to help.

Our services cover all aspects of manufacturing, including white label and OEM, and compliance. We offer expert teams who can develop unique flavours, manufacture and produce your E-Liquids, bottle and label your products, and even offer a creative studio that can develop/update packaging, labels, logos and POS.

As a leading E-Liquid manufacturer in the UK, Xyfil has the trust of the many brands we have already helped take to market in the UK, EU and overseas. Get in contact with us today to see how we can help you.

British Manufacturer for E-Liquids & CBD

A leading E-Liquid and CBD manufacturer in the UK.

Why should you choose Xyfil for your manufacturing needs? There are a lot of reasons why we make a great fit for those looking to start an E-Liquid or CBD brand. We’ve already helped hundreds of brands take their products to market, including several award-winning names (Pod Salt, Cali Greens and more) that continue be recognised by the industry.

Here are a few of the reasons why you should choose Xyfil for your manufacturing needs.

ISO & GMP certified

Xyfil is one of the very few British E-Liquid manufacturers that has not only been ISO 9001 certified, but GMP certified also. This is a massive step for us in showcasing our commitment to quality and safety.

ISO 9001 sets out the criteria for a quality management system and is a certified standard used by all good quality manufactures. This standard is based on several management principles used to ensure quality. These include: a strong customer focus, motivation, and involvement of top management, plus processes for continual improvement.

ISO 9001 certification ensures that companies provide customers with consistent, good quality products and services. As a manufacturing company, we at Xyfil are proud of our ISO 9001 accreditation as it shows we are consistently pushing to provide our customers with only the very best.

GMP (Good Manufacturing Practice) is often used by many manufacturers as a guideline system for ensuring that products are consistently produced and controlled according to quality standards. It is designed to minimise risks involved in production that cannot be eliminated by testing the final product.

Most companies use this, but few are GMP certified. We have gone the extra mile to ensure that our customers can have the utmost peace of mind with us, and have been certified to GMP standards, showcasing our continued effort in providing the very best possible.

Quality assurance with full traceability

We ensure that your products are in safe hands whether they are manufactured here or delivered to us ready to be bottled and labelled. There are a variety of ways we do this following our ISO and GMP practices, but also through our full traceability process.

At Xyfil, we like to make sure that from start to finish, we have full accountability for every aspect. This includes supply chains and ingredients, to manufacturing and production work, all the way to the creative studio designs and eventual dispatch from our doors. Every step of the way is tracked so that should any errors occur, we can quickly and efficiently find the point of issue and correct it with as little impact on the product as possible.

Versatile toll manufacturing

Xyfil not only offers white label manufacturing and OEM (Original Equipment Manufacturer), but we also operate as a Toll Manufacturer. This essentially means that at whatever point in the process you may require work, we are able to help. Not all who are in the market for a E-Liquid or CBD manufacturer in the UK require the full manufacturing process.

Some may only need the ability to bottle their products, or need the creative aspects such as logos, POS, packaging & labelling. There are some who are looking for help with regarding compliance testing of products to ensure they meet market regulations. No matter the scale of your products or business, no matter the step of manufacturing you are currently in, Xyfil can help.

Bottling

Already have a formulation ready for bottling, but don’t have the means to do so? We can offer our bottling services for any non-edible liquid including E-Liquids, CBD, hand sanitiser and more. With a wide range of bottle solutions that cover many of the industry standard sizes and shapes for E-Liquids, CBD and cosmetic products, there is a bottle/container for everything.

Creative studio

Work with us on your branding, product labels, product packaging and more. Our in-house creative studio is able to offer white label and OEM solutions for your brand. With experts in all things creative, we are able to effectively create stunning product & packaging designs, full media kits including web content, and POS for stores.

Compliance

Seeking regulatory compliance can be tricky and time-consuming, but we make it as simple as possible. Our in-house compliance team are here to help you make sure your products are market-specific and meet the trade licenses of the country you wish to sell in. This includes both E-Liquid and CBD. We are uniquely experienced in securing regulatory approval in the UK, EU and across many international markets including the Middle East.

Adaptable, capable, sustainable

In a market as ever-changing as the vaping industry, it is important to remain versatile and adaptable to changes. Vaping regulations often change around the globe with some having long-standing effects. To be able to remain present as a brand, under these situations can be daunting but it is something that we strive to work with. Whether it be flavour bans, limits on nicotine strength or E-Liquid capacities, Xyfil is capable of rectifying such changes.

Seen before in the application of the TPD regulations in the UK and EU, Xyfil was among the very first to update product lines to create compliant products that were immediately back on shelves for consumers.

Whether regulatory changes mean a flavour ban on all things other than tobacco, Xyfil offer a wide range of tobacco flavours in our white label packages, or new regulations on nicotine-containing products, we are able to adapt and are capable of meeting the new demands quickly and efficiently.

If you think that Xyfil would be a great fit for you, contact us today to find out exactly how we can help you.

Malaysia Vape Tax to Hit E-Liquid Hard

The Malaysian tax on nicotine E-Liquid

Last year, the Malaysian government decided that vaping needed to become more regulated due to its increasing popularity. Along with the sudden Tobacco and Smoking Control Bill approved July 13, 2022, that bans the sale of vape products to those born after 2005, they are going ahead with their planned tax increase on nicotine-containing products including nicotine-free E-Liquids. Originally the new taxation on E-Liquids was due to take effect on January 1st 2022 but was delayed due to complaints from consumers and the vaping industry.

The plans would see the price of vaping products triple their current prices.

Currently vaping products that contain nicotine are not legally allowed for sale in Malaysia. At first vapers rejoiced at hearing the government’s plans to legalise and regulate vaping, however, the cost may be too great. The current tax rate on nicotine-free products is RM 0.40, but with the tax hike, it will go up to 1.20 RM per millilitre. That’s around an extra $17 on a 60ml bottle of E-Liquid.

How popular is vaping in Malaysia?

Originally, vaping was seen as a niche market in Malaysia however since then there are approximately 1.12 million vapers in Malaysia and is touted to continue to grow. 94% of these were previous smokers, a number that should be celebrated considering the reduction in harm by swapping to vaping. Not only this but there are more than 3,300 businesses related to the vaping industry, and so feeding the growth is likely to grow the economy and potentially invite foreign direct investment (FDI). Data collected in 2021 suggested that 80% of Malaysian people are in favour of regulations being introduced for vape products.

However, all of these great things can be hindered by the wrong sort of regulations.

Problems with the proposed vape tax going forward

One of the problems with this tax hike on vaping products means that incredibly, E-Liquids will become more expensive than cigarettes. Considering that vaping is generally agreed on being much less harmful than smoking, the fact that vaping products will be taxed harsher than cigarettes has many rightly concerned.

Similarly, there are worries that because of the sharp increase in price that manufacturers and retailers will have to make decisions on, put these legal products at odds with the much cheaper, black market products. Due to the legal state of nicotine-containing products in Malaysia, a black market has arisen to cater for the needs of vapers who want these products. With the increase in prices of vaping products which will see them become more of a luxury item, those using vaping to quit smoking could possibly quit vaping and re-take up smoking or purchase the much cheaper black market options. Neither are ideal.

This is not to say that regulations are a bad thing, on the contrary, we’ve seen that regulations can be beneficial. They help to establish a safe vaping market with products that are intended to help reduce harm. As seen by us here in the UK, our vaping regulations are some of the strictest in the world and yet it has allowed the vaping industry here to flourish.

In the case of the Malaysian government, an open conversation needs to be had between the governing bodies and representatives from the industry. Establishing regulations is ideal but ensuring that those regulations are fair and just, is a must to avoid creating more harm than good.

What do you think, should Malaysia opt for similar regulations to that in the UK?

German Tobacco Tax Impacts E-Liquids Per ml

Back in 2011, the German Bundestag made a sudden amendment to the Tobacco Tax Act in an effort to modernise it. This resulted in an increase in tax for tobacco-containing products. But as of the 1st of July 2022, E-Cigarettes and E-Liquids, even those that do not contain nicotine, will also be subject to tobacco taxation.

The reform of the Tobacco Tax Act

On the 11th of June 2021, the German Bundestag made amendments to their Tobacco Tax Act with the Tobacco Tax Modernisation Act (TabStMoG). Originally it had been put forward that April but after various meetings, the Finance Committee further tightened the planned changes. The changes were aimed at increasing the tobacco tax for conventional cigarettes, cigars, cigarillos and fine-cut tobacco, as well as heated tobacco and water pipe tobacco.

All of this, of course, is in aid of trying to meet the EU's demand for becoming smoke-free. Therefore, as of 2022, smokers will have to pay more rising to 10 cents per pack, with a further 10 cents being added each year until 2025 and 2026 when it will increase to 15 cents per pack.

The new update to include E-Cigarettes & nicotine-free products

The new changes also dictated the future of E-Cigarettes in Germany. At the time of the amendments, it was mentioned that E-Cigarettes and nicotine-free products would be included in the future. And as of 1st July 2022, these will now constitute as a taxable item.

These changes have resulted due to an assumption by the German government, that vaping products are equally as harmful to health as tobacco products. Despite the expert advice and countless pieces of evidence that suggest the opposite, they hope this new tax will reduce the usage of vaping devices.

Taxation is calculated on a millilitre basis based on the volume of the substance. Products with high ml counts such as shortfills are likely to become much more expensive. As of July 2022, the tax rate is 16 cents per millilitre, which will then rise to 32 cents per millilitre from 2026.

Possible consequences of the taxation

It’s no surprise that these changes are going to impact businesses and consumers. Wildly criticised for its demonising approach to vaping, there are obvious concerns that it may drive fewer people to quit smoking. There's also the possibility it may push consumers to purchase cheaper products from other places in the EU. Even more questionably, the inclusion of nicotine-free products in this agenda means that shortfills no longer are likely to be a popular choice for vapers looking to get more for their money.

For businesses, investing in smaller bottle sizes is more likely to become the go-to in an effort to keep prices low for consumers. Rather than the typical 10ml bottles, smaller sizes like 5ml are likely to become more popular. The new taxation is likely to impact the pricing of products which quickly becomes a battle of profit vs sellability. Will consumers pay a higher price point for the products they enjoy? Especially if they can buy them elsewhere, cheaper.

Helping businesses establish updated product ranges to suit market changes and regulations is a speciality of Xyfil. We constantly keep up to date on the latest from the vaping industry to ensure that we can cater to global needs.

Here at Xyfil, we offer a wide variety of E-Liquid types and sizes including small bottle concentrates. Already we are working with brands who wish to keep their products in Germany, to update their products and packaging to reflect the new regulations. If you want to take your E-Liquid products to Germany, get in contact with us today.

Celebrating Our Hard-working Teams with the Xyfil BBQ

It’s been a busy 7 months in 2022 and after a particularly scorching heatwave, we decided to arrange the perfect ‘thank you’ event for our Xyfil family.

Great food and great company really do set the mood. For all the hard work over the past year, Xyfil arranged for our favourite BBQ team, A2Z BBQ catering, to come to visit once again. This year was just as much a hit as last year!

The entire company was invited outside to enjoy flame-roasted delights. It’s the perfect time for us all to unwind, and enjoy the food, and the company of our colleagues that make up the Xyfil family. From the warehouse, production, office, cleaning, lab, management and more. And the weather has certainly improved much from last year’s BBQ!

It’s July now and there’s still much work to be done, but it’s these things that really help create a sense of family among the Xyfil crew. We’re excited for the year ahead and you should be too – keep in the know with Xyfil and follow us on LinkedIn and our Info Hub to see what’s next in store.