Scottish retailers call for tougher action as illegal vape black market “deepens,” SGF says

Key Takeaways

• SGF says Scotland faces a “deepening” illegal vape black market and wants tougher enforcement and more investment

• SGF stresses enforcement against illegal sales, including those to children, and calls for shopkeepers’ input into new rules

• The report references the UK Tobacco & Vapes Bill and expected Scottish secondary legislation

• SGF cites an HMRC loss figure of about £2.8bn from illegal tobacco sales and warns a single-use vape black market could raise it

• SGF member polling says three-quarters of respondents believe the disposables ban encouraged illicit buying and selling

• SGF estimates crime costs Scotland’s convenience stores £100m a year, averaging £19,500 per shop

2Firsts, January 14, 2026 – According to Convenience Store, Scottish retailers are demanding tougher action to tackle a “deepening black market” in illegal vapes.

The Scottish Grocers’ Federation (SGF) said the situation will worsen, with negative impacts on health, unless additional incoming regulations on the sale of vaping products are carefully crafted. It said illicit trade is depriving the public of millions of pounds in taxes and damaging the future of local stores. The body, representing thousands of shops, called for more investment to tackle illegal sales, including those to children, and for shopkeepers’ voices to be heard as new rules are drafted.

Luke McGarty, SGF’s head of policy and public affairs, said criminal gangs are increasingly involved in black market activity, profiteering from illicit vaping products. He said there are no assurances about the safety of such products and that they are reaching people “they shouldn’t,” harming businesses, communities and potentially the health of those buying illegal vaping products. He said trading standards officers work hard but need greater investment to give them the resources to track down those responsible and bring them to justice.

McGarty also said illegal tobacco sales already cost HM Revenue and Customs about £2.8bn, and said that with the black market for single-use vapes that total is “surely going to soar.”

The report says the call comes as the UK Government’s Tobacco & Vapes Bill progresses, bringing increased regulation, and notes the Scottish Government is expected to introduce secondary legislation on the back of it. Store owners said fine detail around vape flavour and store placement rules needs to be carefully considered to limit unintended criminal opportunities.

Guna Sud, whose family operates RaceTrack convenience stores in Greater Glasgow, said regulation and illicit trade are “almost going hand-in-hand” and warned the problem will keep growing unless more is done. She said illicit trade was present before the ban and, based on what they have seen, is “ten-times stronger” after it.

SGF said crime across the board is one of the biggest issues affecting the retail sector and estimated it costs Scotland’s convenience stores £100m a year, averaging £19,500 per shop. Mohammed Rajak, who has run a convenience store in the East End of Glasgow for more than 30 years, said illicit trade is an increasing headache for compliant retailers and said not enough rogue traders are being caught because trading standards teams are overwhelmed and under-resourced. He said rogue traders are selling to underage customers and linked this to the purpose of the ban on single-use vapes.

The report also states that when SGF questioned its members on the impact of the disposables ban, three-quarters of respondents agreed that it has encouraged the sale and purchase of illicit products. Shop bosses told SGF that cost increases and flavour restrictions are the steps they believe most likely to encourage further illicit trade, and some also expressed concern that restricting flavours will prevent smoking cessation among those who wish to quit.

SGF said it has issued guidance to members to reinforce vaping law compliance and will work with the Scottish Government to ensure future restrictions do not result in unintended negative impacts, including fuelling illicit trade and resulting in verbal or physical abuse of staff. McGarty said future restrictions, particularly those around vape flavours and store placement, should not make the situation worse, and added that vaping should be for adults who wish to quit smoking while government action to stop non-smokers, particularly children, from accessing vapes is appropriate.

According to the official website, the Scottish Grocers Federation was established in 1918 and is the only authoritative trade association for the convenience store retail industry in Scotland. It represents the interests of local grocery retailers, including independent retailers, symbolic groups (such as Day-Today, Usave), and some large supermarkets (such as Waitrose). By submitting research data and providing feedback, the federation influences laws and regulations related to the retail industry.

Image source: Convenience Store