The All-Ukrainian Association of the E-Cigarette Market (VARES) announced on August 27 that Ukraine has the highest vape liquid prices in Europe relative to average earnings. High excise taxes have driven legal e-liquids to cost nearly one percent of the average monthly salary, fueling a massive shadow market.
VARES Chairman Andriy Solomin noted that with an average monthly salary of approximately 38,000 UAH, a 10ml bottle of legal e-liquid costing 350 UAH represents 0.92% of a worker’s income. In comparison, a pack of traditional cigarettes costing 160 UAH represents 0.42% of the average salary. This makes vaping twice as expensive relative to income as smoking.
| Country | 10ml E-Liquid Cost as % of Average Salary |
|---|---|
| Ukraine | 0.92% |
| Germany | 0.25% |
| Poland | 0.25% |
| Spain | 0.23% |
| France | 0.16% |
| Denmark | 0.11% |
| United Kingdom | 0.10% |
The high cost stems from rapid excise tax increases. The rate rose to €300 per liter in 2025. While countries like Germany and Latvia also have high rates, they phased them in over several years. Furthermore, the €300 rate is not a European Union standard; a 2022 proposal for a minimum EU vape tax of €0.30 per ml was rejected by the European Council.
Data from Pro-Consulting indicates that only 27% of Ukrainian consumers are willing to pay higher prices without changing their buying habits. The remaining 73% will seek cheaper alternatives, reduce consumption, or switch products. Because legal products are expensive, consumers turn to the shadow market, which Kantar estimates controls 93.6% of Ukraine’s e-cigarette trade.
Pro-Consulting research also shows that 82% of users prefer reusable e-cigarettes, meaning the market is driven by ongoing purchases of liquids and components rather than one-time device sales. Additionally, 70% of consumers buy their liquids in physical stores, offering a clear opportunity for state licensing and retail control.
To bring the market into the legal, taxable fold, VARES proposes limiting nicotine boosters to 5ml, capping nicotine concentrations at 120 mg/ml, banning retail nicotine storage, and separating vape and tobacco sales licenses. The association estimates these measures could generate 4 billion UAH in budget revenue during the first year by expanding the legal market segment.
