Restrictive Policies Drive Vaping Market to Illicit Trade

Ottawa, ON, Sept. 24, 2026 /CourierPR/ -- The Canadian vaping industry is grappling with the unintended consequences of restrictive policies, as outlined in a recent press release from the Canadian Vaping Association (CVA). The release highlights how bans on flavored vaping products have driven consumers towards the illicit market, exacerbating public safety concerns and undermining public health gains.

In Quebec, the province's efforts to ban flavored vaping products have backfired, pushing demand into the hands of organized crime. According to the CVA, in 2023, the Sûreté du Québec seized more than 300,000 illegal vaping products and froze $1.8 million in bank accounts in a major smuggling investigation. This underscores the reality that restrictive policies can inadvertently fuel the illicit market.

The issue extends beyond Quebec. Since January 1, 2026, the Canada Border Services Agency (CBSA) has seized over $52 million in illegal tobacco and nicotine products in Southern Ontario alone, with $13.8 million seized in a single month. This trend is mirrored in other countries, with government research in the Netherlands revealing that 87% of vapers use illegal products or sales channels after a nationwide flavor ban. Similarly, in Australia, the rapid growth of illicit tobacco and vaping markets has been linked to organized crime.

The CVA's analysis, based on new Statistics Canada sales and vaping-use data, indicates that the legal vaping market in Canada was 26.7% smaller in 2025 than it would have been without recent tax increases and stringent regulatory policies. This decline is attributed to a diversion of demand to the black market, despite a relatively constant number of vapers. The organization warns that such policies risk pushing consumers towards more harmful products, such as cigarettes, which saw sales rise by roughly 10% in Canadian provinces and territories that restricted vape flavors.

Youth vaping has seen a significant decline, with usage falling by nearly 60% since 2019, according to Health Canada. However, the CVA argues that further restrictions on the legal market could undermine these gains. Health Canada reports that 1.9 million adult vapers are currently using vaping products as a less harmful alternative to smoking. With Canada targeting a smoking rate below 5% by 2035, the CVA calls for a shift towards balanced, evidence-based policies that protect public health without driving consumers into the illicit market.

The CVA advocates for sustained funding for enforcement and compliance efforts, including the Canada Revenue Agency (CRA), CBSA, Health Canada, and the Royal Canadian Mounted Police (RCMP). They also call for coordinated federal-provincial action against illegal online retailers to address the growing illicit market.

In conclusion, the CVA's press release highlights the complex challenges posed by restrictive policies on the vaping industry. While such measures aim to protect public health, they may inadvertently fuel the illicit market and undermine progress in reducing smoking rates. The organization emphasizes the need for a balanced approach that prioritizes public safety and supports legitimate businesses.