Issue link: https://read.dmtmag.com/i/1545684
24 tobaccoasia Issue 4, 2026 July / August By Thomas Schmid Across Southeast Asia, the prevalence of illicit vaping products reflects a region shaped by strin- gent regulatory environments, widespread prohibitions, and persistent consumer demand that often outpaces legal supply. In many ASEAN countries, vaping products are either banned out- right or subject to tight controls, creating conditions in which illicit markets not only emerge but frequently dominate. Insights drawn from Euromonitor International and Tamarind Intelligence point to a landscape in which enforcement capacity, taxation regimes, and shifting consumer pref- erences interact in complex and sometimes counterproductive ways. The result is a fragmented regional picture, where some markets are witnessing contraction of illicit activity through strict enforcement, while others are experiencing rapid expansion driven by affordability pressures and regulatory loopholes. Indonesia: Price pressures and policy frictions Indonesia occupies a unique position within ASEAN as a market that has not implemented an outright ban on vaping products, yet still faces a substantial and growing illicit segment. According to Varshini Venugopalan, senior consultant at Euromonitor International, illicit e-vapor incidence stood at 54.8% in 2024, with expectations of continued growth over the coming years. This tra- jectory is closely linked to fiscal and regulatory developments that are reshaping the legal market. The implementation of an additional 10% tax on vape products in 2024, followed by the introduc- tion of a minimum retail price in 2025, has widened the price gap between compliant and non- compliant products. As legal products become more expensive, consumers—particularly those with limited disposable income—are increasingly incentivized to seek out cheaper alternatives in the illicit market. Venugopalan suggested that these affordability pressures "are likely to intensify, potentially accelerating the shift toward non-compliant products." The Indonesian case illustrates how regulatory measures intended to control consumption can inadvertently fuel illicit trade when they significantly alter price dynamics without corresponding enforcement mechanisms. Illicit Vaping in ASEAN: A Region under Pressure The region's fragmented economic, social, and regulatory landscape has created a surprisingly complex incidence patchwork. A customs official discovers a vaping device in an air traveler's luggage. Credit: ChatGPT