Key Points
- Global exports: China's vape-related exports reached $2.86 billion in Q3 2026, up 4.5% year over year, but September shipments fell 6.3% year over year and 15.0% from August.
- Market divergence: The UK added $81.9 million in exports, the largest gain among individual destinations, while US-bound shipments declined $53.6 million.
- Product mix: Nicotine-containing vape products rose 5.6%, accounting for 82.4% of global net growth. Vaping device exports increased just 0.9%.
- Nine-month performance: Exports totaled $7.82 billion in January–September, up 4.0%, with UK-bound shipments rising 9.4% and US exports declining 1.6%.
2Firsts
October 25, 2026
According to China Customs data, China's vape-related exports rose 4.5% year over year to $2.86 billion in the third quarter of 2026, led by a sharp increase in shipments to the United Kingdom even as exports to the United States declined.
UK-bound exports increased by $81.9 million from a year earlier, the largest gain among individual destinations, while shipments to the US fell by $53.6 million, according to a 2Firsts analysis of Chinese customs records.
The analysis covers three product categories: vaping devices (HS85434000), nicotine-containing vape products (HS24041200), and nicotine substitutes (HS24041990). The nicotine-containing category includes prefilled pods, e-liquids and certain integrated vaping products, depending on customs classification.
Export growth was concentrated in July, when shipments reached $1.05 billion, up 16.5% year over year. Exports slowed to $979.4 million in August, an increase of 3.3%, before falling 6.3% in September to $832.6 million, down 15.0% from the previous month.
The quarterly increase totaled approximately $124 million. Gains in the UK, South Korea, the United Arab Emirates and other destinations offset declines in the US and parts of Europe.
UK Leads Export Gains as US Shipments Drop 37.8% in September
China's vape-related exports to the UK rose 21.6% year over year to $461.8 million in Q3, adding $81.9 million, equivalent to about 66% of the global net export increase.
Most of the gains occurred in August and September.
UK-bound exports climbed 51.4% to $177.1 million in August and rose 37.4% to $123.9 million in September. September shipments were nevertheless about 30% lower than in August.
The US moved in the opposite direction.
China exported $984.5 million of vape-related products to the US during the quarter, down 5.2% year over year. The country remained China's largest individual export destination, but its share of global shipments fell from approximately 38.0% in Q3 2025 to 34.4% in Q3 2026.
US-bound exports surged 53.5% to $404.2 million in July, then declined 12.4% to $339.3 million in August.
By September, shipments had fallen to $241.0 million, down 37.8% from a year earlier.
Export value to the US dropped by approximately $163 million between July and September, a decline of 40.4% in two months.
The year-over-year loss in US-bound shipments reached approximately $146 million in September, compared with a $55.9 million net decline in China's global vape-related exports that month. Gains in other markets offset part of the US contraction.
Elsewhere, exports to South Korea and the UAE increased by approximately $37.5 million and $32.3 million, respectively, during Q3. Indonesia added $22.7 million, while Canada contributed $18.4 million.
Nicotine-Containing Vape Products Drive Growth as Devices Remain Flat
China's exports of nicotine-containing vape products rose 5.6% year over year to $1.93 billion in Q3, adding approximately $102 million and accounting for 82.4% of the global net increase.
Vaping device exports reached $887.9 million, up just 0.9%, an increase of approximately $7.7 million.
Exports of nicotine substitutes rose 45.5% to $45.0 million but represented only about 1.6% of the combined value of the three tracked categories.
The UK and US showed contrasting patterns within the largest product category.
UK-bound exports of nicotine-containing vape products increased 45.7% to $221.6 million, adding approximately $69.5 million. The category accounted for 84.9% of the UK's total export gain.
Shipment weight rose 56.0%, while declared export value per kilogram fell 6.6%, indicating that higher physical shipment volumes drove the increase in value.
US-bound exports in the same category fell 5.3%, a decline of approximately $42.9 million. Shipment weight dropped 8.8%, while declared value per kilogram increased 3.9%.
Device shipments also diverged.
China's vaping device exports to the US declined 7.1% in value, with unit shipments falling 3.0% and declared value per device down 4.2%.
UK-bound device exports rose 5.2% in value, with unit shipments up 2.9% and declared value per device increasing 2.3%.
The US decline was reflected in both lower shipment weight for nicotine-containing products and fewer devices exported. The UK's growth was driven largely by higher shipment weight in nicotine-containing products.
Customs unit values are calculated from declared export values and quantities. They do not measure like-for-like product prices or retail selling prices.
EU Shipments Hold Steady as South Korean Nicotine Substitutes Rise
China's vape-related exports to the 27 European Union member states totaled $439.7 million in Q3, down 0.5% year over year.
The overall figure masked a shift among individual destinations. Shipments to Germany fell by approximately $48.0 million, while exports to Slovakia increased by $38.7 million, largely driven by vaping devices.
Differences in national enforcement and customs practices may be influencing import and distribution routes within Europe. Chinese customs data record declared export destinations rather than the final markets where products are consumed.
South Korea recorded a different pattern.
China's exports of the three tracked product categories to South Korea rose 37.9% year over year to $136.4 million in Q3.
Exports of nicotine substitutes increased 212.8% to $4.48 million. Shipment weight rose 203.9%, while declared value per kilogram increased just 2.9%.
South Korea expanded tobacco regulation and related taxation to synthetic nicotine on April 24, 2026, and strengthened customs inspections of vaping liquids in August.
The nicotine substitute category in China's export data is not a direct measure of synthetic nicotine e-liquid shipments, and the records do not establish whether the regulatory changes contributed to the increase.
US and UK Vape Export Trends Diverge Amid Tax and Import Policy Shifts
China's vape-related exports to the UK rose 21.6% year over year in the third quarter of 2026, while shipments to the US fell 5.2%. Monthly figures showed sharply different patterns in the two markets.
The UK's growth came ahead of a new excise duty on vaping liquids. Set at £2.20 per 10 milliliters, the tax altered the cost economics of products with different liquid capacities, prompting manufacturers and importers to reassess which formats would remain competitive.
According to 2Firsts' industry observations, uncertainty over post-tax product preferences led some exporters to hold back large-scale shipments of existing products. Orders began to pick up as the market moved toward a clearer view of future product configurations. After falling 6.9% year over year in July, China's vape-related exports to the UK rose 51.4% in August and 37.4% in September.
The US market followed a different trajectory. Exports jumped 53.5% year over year in July before declining 12.4% in August and 37.8% in September. Monthly shipments fell 40.4% from July's peak to September.
Meanwhile, the US Food and Drug Administration continued import enforcement targeting e-cigarettes without marketing authorization, while US Customs and Border Protection proposed exploring additional foreign export documentation to strengthen import declaration checks. These developments formed part of the US regulatory backdrop, although available trade data do not establish their specific contribution to the quarterly decline.
Nine-Month Exports Rise 4.0% to $7.82 Billion
China's combined exports across the three tracked product categories totaled $7.82 billion in January–September 2026, up 4.0% from $7.51 billion a year earlier.
Shipments to the US reached $2.56 billion, down 1.6%, while UK-bound exports rose 9.4% to $1.03 billion. Exports to the EU-27 declined 3.6% to approximately $1.40 billion.
The UK added $88.2 million in exports over the nine-month period, with 92.8% of that gain occurring in Q3.
For the US, the quarterly decline more than offset modest growth in the first half, leaving cumulative shipments below their 2025 level.
The US remained China's largest individual destination for vape-related exports through September, but it no longer contributed to global net growth in Q3. The UK accounted for the largest increase among individual markets, with South Korea, the UAE and other destinations also contributing to the quarterly gain.
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Cover Image: generated by AI
