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A new study detailing the scale of the illicit cigarette trade in the European Union (EU) shows that consumption of black-market cigarettes rose more than 7% year-on-year in 2025, reaching levels not seen in over a decade, with counterfeit cigarettes playing an increasingly significant role across member states. Philip Morris International (PMI) (NYSE: PM) reiterates its call for a coordinated response to illicit trade in Europe, built on evidence-based regulation and strengthened cooperation.

According to the 20 th edition of the study“Illicit cigarette and heated tobacco consumption, and oral nicotine share in Europe ”, which was conducted by KPMG LLP on behalf of Philip Morris Products S.A., illicit cigarettes in the EU accounted for more than one in ten cigarettes for the first time since 2014. In 2025, illicit volumes reached 41.8 billion in the EU—representing 10.3% of total consumption—resulting in an estimated €16.7 billion in lost tax revenues.

Across the 38 European countries included in the study, illicit consumption reached 55.3 billion cigarettes, corresponding to an estimated €22.4 billion in state budget revenue losses.

The illicit market is undergoing a fundamental transformation: “Made in EU” counterfeit cigarettes are increasingly displacing traditional East-to-West contraband flows. Supply chains are becoming faster and harder to trace, and operations are moving closer to end consumers – especially in Western European countries such as France, Belgium, and the Netherlands, which are becoming central hubs for illicit tobacco and nicotine products.

Counterfeits have become the largest source of illicit cigarettes in the EU, reaching 18.3 billion and accounting for 44% of total illicit consumption in 2025. Counterfeit volumes increased more than 20% year-on-year, highlighting organized crime’s ability to rapidly adapt production and distribution models to reduce detection risks.

“The data is clear: counterfeits have become the primary engine of the illicit cigarette market in the EU, supported by criminal supply chains designed to bring fake products to consumers in high-value markets, undermining the European economy and fueling broader illicit activity,” said Christos Harpantidis, Group Chief Corporate Affairs Officer, Philip Morris International. “ It also underscores persistent structural vulnerabilities across regulation, enforcement, and judicial follow-through that create space for illicit trade to grow – at a time when many EU member states are under broader security and economic pressure, from inflation and competitiveness challenges to rising budget demands on security and defense due to geopolitical fragmentation. Closing these gaps in Europe requires coordinated action: stronger law enforcement, public-private cooperation and a focus on regulation that is balanced, evidence-based, and enforceable in practice,” Harpantidis added.

Estimates show that Europe’s tobacco and nicotine value chain supports over 2.1 million jobs and generates €224 billion in value – comparable to the EU’s 17th largest economy. With nearly €24 billion in annual exports, it is a significant industrial ecosystem, yet increasingly affected by illicit trade amid economic uncertainty and need for competitiveness in Europe. Addressing this requires pragmatic, evidence-based regulation and stronger cooperation, while supporting investment and innovation in Europe.

“Illicit trade is becoming more sophisticated, localized, and increasingly industrialized. It not only erodes legitimate business activity but also fuels criminal networks that operate with speed, scale, and impunity, discouraging investment, innovation and governments’ ability to deliver on public health and fiscal objectives,” said Yann Guérin, Group Chief Legal Officer, Philip Morris International.

Western Europe at the forefront of this trend

Illicit consumption is increasingly concentrated in major Western European countries—most notably France, Belgium, and the Netherlands—amplifying fiscal pressures and enforcement challenges as illicit penetration rises.

• France remains Europe’s largest illicit market, at a 41.4% illicit share (20.5 billion cigarettes). Counterfeits alone accounted for almost 9.7 billion cigarettes (around 19% of total consumption). France saw the largest increase in illicit cigarette consumption across Europe in 2025.
• Belgium recorded an illicit share of nearly 25% (more than 2 billion cigarettes).
• The Netherlands rose above 22% illicit share (2.1 billion cigarettes), returning to levels last observed around 2006.

More broadly, six EU member states now record illicit shares above 20%, underscoring the scale and concentration of the issue. Outside the EU, the United Kingdom remains the second-largest illicit cigarette country in the study, with volumes now surpassing 7 billion, including 3.5 billion counterfeit cigarettes.

What works: evidence-based policy, not extremes

Not all markets move in the same direction. Some countries have achieved sustained declines through a balanced policy mix combining predictable fiscal approaches, proportionate regulation, and consistent enforcement.

• Greece (14.1% illicit share; 1.9 billion cigarettes) recorded one of the largest year‑on‑year declines – 3.4 percentage points. This marks a significant shift from previous years, when illicit levels consistently remained above 20%, highlighting a notable improvement in recent performance.
• Ukraine (15.9% illicit share; 5.1 billion cigarettes) saw illicit volumes decline by nearly 1 billion cigarettes year‑on‑year. This reduction is particularly notable given the highly challenging operating and security environment, pointing to sustained enforcement efforts and market resilience.

“The lesson we derive from the situation in Europe is that not one single lever solves the problem of illicit trade; it is that a well-coordinated set of measures does,” said Massimo Andolina, President, Europe Region, Philip Morris International. “Countries that coordinate a proportionate, evidence-based approach to regulatory and tax frameworks with a disciplined effort of enforcement demonstrate that illicit trade of nicotine products can be reduced to the benefit of consumers, public finances, and the fight against crime. On the contrary, countries that promote excessive tax increases, or, even worse, product bans, such as France and the Netherlands, see illicit trends worsening, public tax collection suffers, consumers gain access to uncontrolled products, and crime thrives. It is not the evidence that is now missing, but rather the desire to act rationally and decisively,” he added.

“Sustained public-private collaboration, combining effective law enforcement with robust data, expertise, information sharing, and operational capabilities, is essential to help identify, investigate, and dismantle counterfeit networks and enable authorities to stay ahead of illicit operators, moving beyond reactive measures toward a more proactive, intelligence-led approach,” added Guérin.

Heated tobacco and oral nicotine products

For the second consecutive year, the report also covered illicit consumption of heated tobacco products in selected European markets. It found contraband represented 1.2% of total heated tobacco consumption—significantly lower than in cigarettes—with Germany, Austria, and the Netherlands among the most impacted countries. No counterfeit heated tobacco flows were identified. However, the presence of contraband underscores that, while the scale remains limited, no product category is immune to illicit trade.

While electronic heating devices are not within the scope of the study, available PMI internal analyses and third‑party research similarly indicate no meaningful presence of contraband or counterfeit activity in this category to date.

For the first time, the study also assessed oral nicotine products in selected countries. It found that in markets where nicotine pouches are banned or highly restricted, survey data indicate significant availability—often involving counterfeit, non-compliant or non-domestic products—suggesting widespread consumer access despite legal restrictions. The highest shares of products not eligible for sale—with the potential to reach a substantial number of consumers—were observed in the Netherlands, Germany, and Belgium.

“ Philip Morris International believes policymakers in Europe should apply evidence-based, risk-proportionate regulatory approaches across all nicotine product categories – designing rules that protect consumers, support law enforcement, and avoid unintended consequences that shift demand toward the black market,” Christos Harpantidis added. “ This is particularly important as evidence from other nicotine categories, including pouches and e ‑ cigarettes, indicates the emergence of widespread illicit activity in some parts of Europe – reinforcing the need for regulatory approaches that are both effective and grounded in real-world conditions.”

As Philip Morris International advances towards a smoke-free future, it continues to strengthen supply chain controls and cooperate with law enforcement and other stakeholders to combat counterfeiting and smuggling of tobacco and nicotine products.

The full study results, country profiles, detailed study methodology, and country-level findings are available here.

For more information about PMI’s illicit trade prevention efforts, visit PMI.com.

Note to editors

Definitions of illicit cigarette categories, as detailed in the KPMG report:

• Counterfeit: “Cigarettes that are illegally manufactured and sold by a party other than the original trademark owner.”
• Illicit whites: “Cigarettes that are usually manufactured legally in one country/market but which the evidence suggests have been smuggled across-borders during their transit to the destination market under review where they have limited or no legal distribution and are sold without payment of tax.”
• C&C: “Counterfeit and contraband, including illicit whites. Contraband refers to genuine products that have been either bought in a lower-tax country and which exceed legal border limits or acquired without taxes for export purposes to be illegally re-sold (for financial profit) in a higher priced market.”
• Other C&C: “Other C&C comprises contraband which does not fall within the Illicit Whites definition. It is often Duty Paid product from both EU27 and non-EU27 countries. There may also be counterfeit of brands that are not trademark-owned by participant manufacturers.”
• Not eligible for sale products: Products that are not eligible for sale in the market in which the product is consumed. This encompasses Non-Domestically labelled products, domestically labelled products which do not comply with regulations in the market of study, and Counterfeit products.

Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025, PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 43% of PMI’s first-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables – the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

View source version on businesswire.com:https://www.businesswire.com/news/home/20260603799047/en/

Retailers Against Smuggling (RAS) has said that the publication of a new survey proves the continuing escalation of Ireland’s illicit tobacco market.

The Revenue Commissioners’’ Illegal Tobacco Products Research Survey 2025, independently conducted by Ipsos MRBI, was published on Thursday, found that illegal and non-duty paid tobacco in circulation has hit a record high of 38% of cigarettes in circulation.

The figures are even bigger for Roll-Your-Own (RYO) tobacco, with 45% of RYO in circulation being either illegal or non-duty paid.

Based on the findings from Revenue, as well as recent data from the Department of Finance, RAS has concluded that Ireland’s untaxed cigarette market is now worth €845 million.

Based on the survey results, the level of tax loss from illegal cigarettes reached €645 million, up from €590 million in 2024, highlighting the worsening scale of the issue facing both the Exchequer and Irish retailers.

‘Unintended Consequence’

Speaking about the findings, RAS national spokesperson, Benny Gilsenan, said, “Today’s findings are stark. Ireland is awash with tobacco products that have no tax paid on them in this country because they are being bought illegally or being brought into the country from cheaper markets.

“The government’s approach to Ireland’s tobacco market is driving unintended consequences, largely as a result of exorbitant excise rates which are pushing consumers towards cheaper alternatives.

“When legal products are priced out of reach, consumers are drawn to illicit, untaxed tobacco.

“Criminal networks are the clear winners, while legitimate retailers – our local convenience stores and newsagents – are the big losers.

In response to the survey, RAS called on the government to freeze excise rates on tobacco products in Budget 2027, oppose EU plans to equalise excise rates on RYO tobacco which would further drive up the price in Ireland, and commence a similar survey of illegal and non-duty-paid products.

Spain is biggest market for tobacco purchases, with excise duty on pack of cigarettes about €3 compared to almost €11 in Ireland

The difference between tobacco prices paid in Ireland and those in mainland Europe is fuelling a growth in Irish consumers purchasing tobacco abroad to avoid paying excise duties, according to a retail industry body.

Spain is the biggest market for those purchasing tobacco and bringing it into Ireland (48 per cent), followed by the UK and the Canary Islands, new data has found.

The data comes from polling firm Amárach, but was commissioned by Retailers Against Smuggling (RAS), which represents small and medium-sized retailers who benefit directly from the stability of the legal tobacco industry.

Of the 1,000 Irish adults polled as part of the research, half said they smoked. More than one quarter (28 per cent) said they had purchased tobacco abroad (15 per cent) or in duty-free (21 per cent).

RAS says the figure is growing over time due to the “stark” price gap between Irish tobacco prices and those in Europe.

The excise duty on a packet of cigarettes in Spain is about €3, compared to almost €11 in Ireland, they said. Consequently, the cost of a packet in Ireland is more than double the European average.

In the most recent budget, the price of a packet of 20 cigarettes increased by 50 cent, bringing the price to almost €19.

The retail body said it is concerned the price differential is “fuelling both cross-border purchasing and the growing volume of tobacco products entering Ireland without Irish duty being paid”.

Benny Gilsenan of RAS said smoking rates are “no longer declining at the pace they once were, while the illicit market continues to expand”.

Figures from Revenue indicate that illegal cigarettes now account for more than a quarter of the market, representing an estimated loss to the exchequer of €590 million a year.

The group said the move to duty-free and the illicit trade is undermining the Government tax take and hurting retailers.

It called for stronger enforcement of the new Revenue rules which gave greater powers to address those who attempt to breach the limits on the amount of tobacco product individuals can purchase at duty-free or abroad.

“The new rules introduced last year are welcome, but they must be backed up with visible, targeted enforcement.”

More than a million cigarettes were seized at an Offaly business.

On Tuesday, May 12, as part of an intelligence-led operation Revenue officers, with the support of Gardaí, seized around 1.2 million cigarettes at a business premises in Co. Offaly.

The illicit cigarettes branded Platinum and Top Gun have an estimated value of over €1.1 million, representing a potential loss to the Exchequer of approximately €890,000.

A spokesperson for Revenue said investigations are ongoing.

They added: “These seizures are part of Revenue’s ongoing operations targeting the shadow economy and the supply and sale of illegal tobacco products.

“If businesses, or members of the public, have any information regarding smuggling, they can contact Revenue in confidence on the freephone number 1800 295 295.”

On 30/04/2026, Revenue officers seized approximately 11.4 million cigarettes at Dublin Port. The smuggled cigarettes have an estimated value of over €10.8 million, representing a potential loss to the Exchequer of over €8.4 million.

It is a stark reminder of the scale of the illegal tobacco trade operating in Ireland today.

Seizures of this nature should not be seen as isolated successes, but rather as indicators of a deeply entrenched illicit market. Criminal networks continue to exploit vulnerabilities in supply chains, flooding the market with illegal tobacco products. It is likely that what is being seized may represent only a fraction of what is successfully entering the country undetected.

Now more than ever, RAS believes there is an urgent need to combat the illicit tobacco market with renewed focus. Stronger enforcement and a review of high excise rates are required. Without decisive action, levels of illicit trade will continue to erode tax revenues, damage legitimate retailers, and pose ongoing risks to public health.

Spain is biggest market for tobacco purchases, with excise duty on pack of cigarettes about €3 compared to almost €11 in Ireland

The difference between tobacco prices paid in Ireland and those in mainland Europe is fuelling a growth in Irish consumers purchasing tobacco abroad to avoid paying excise duties, according to a retail industry body.

Spain is the biggest market for those purchasing tobacco and bringing it into Ireland (48 per cent), followed by the UK and the Canary Islands, new data has found.

The data comes from polling firm Amárach, but was commissioned by Retailers Against Smuggling (RAS), which represents small and medium-sized retailers who benefit directly from the stability of the legal tobacco industry.

Of the 1,000 Irish adults polled as part of the research, half said they smoked. More than one quarter (28 per cent) said they had purchased tobacco abroad (15 per cent) or in duty-free (21 per cent).

RAS says the figure is growing over time due to the “stark” price gap between Irish tobacco prices and those in Europe.

The excise duty on a packet of cigarettes in Spain is about €3, compared to almost €11 in Ireland, they said. Consequently, the cost of a packet in Ireland is more than double the European average.

In the most recent budget, the price of a packet of 20 cigarettes increased by 50 cent, bringing the price to almost €19.

The retail body said it is concerned the price differential is “fuelling both cross-border purchasing and the growing volume of tobacco products entering Ireland without Irish duty being paid”.

Benny Gilsenan of RAS said smoking rates are “no longer declining at the pace they once were, while the illicit market continues to expand”.

Figures from Revenue indicate that illegal cigarettes now account for more than a quarter of the market, representing an estimated loss to the exchequer of €590 million a year.

The group said the move to duty-free and the illicit trade is undermining the Government tax take and hurting retailers.

It called for stronger enforcement of the new Revenue rules which gave greater powers to address those who attempt to breach the limits on the amount of tobacco product individuals can purchase at duty-free or abroad.

“The new rules introduced last year are welcome, but they must be backed up with visible, targeted enforcement.”

Read our full article in the Irish Times here: Irish smokers buying more tobacco abroad due to ‘stark’ price differences, say retailers – The Irish Times

The lorry carrying the cigarettes was inspected at Cherbourg Ferry Port as it prepared to embark on a ferry to Ireland

Customs officials in France have seized more than eight tonnes of illegal cigarettes being smuggled to Ireland – hidden inside a delivery of potatoes.

French authorities said the €5.46 million worth of Richmond brand cigarettes were seized at Cherbourg Ferry Port last week – and the driver has now been fined €50,000 and hit with a one year suspended sentence.

He has already been given his lorry and load of potatoes back – but has been told to stay out of France for five years.

Officials said the find was made by customs officials during a routine inspection of a heavy goods vehicle at the Port on Wednesday of last week.

Some of the cigarettes seized in France before they could reach the streets of Ireland.(Image: Douane Française/French Customs)

They said the lorry had travelled from The Netherlands and was heading for a ferry to Ireland when the find was made.

French Customs announced the seizure in a statement on Friday morning.

It said: “On February 4, during an inspection at the Cherbourg port terminal, customs officers discovered 8.4 tons of contraband tobacco hidden in a truckload of potatoes bound for Ireland.

“This merchandise has a street value of €5.46 million.

“The cigarettes were hidden behind sacks of potatoes.

The cigarettes hidden in the lorry and a few of the sacks of potatoes that were hiding them.(Image: Douane Française/French Customs)

French Customs officials inspecting the lorry.(Image: Douane Française/French Customs)

“The merchandise, intended for illegal distribution networks, will be destroyed by customs officials.

“The driver appeared in court for a plea bargain hearing.

“He was fined €50,000 by customs, given a one-year suspended prison sentence, and banned from French territory for five years.

“The shipment of potatoes and the truck were returned to him.”

French customs also said the seizure was part of a wider campaign to combat tobacco smuggling – which they claim is a major cash cow for organised crime gangs.

They also revealed that officers seized seven tonnes of tobacco at the same port in October 2025 in a truck traveling the same route from the Netherlands to Ireland.

Taken from the Irish Mirror.

Customs officials in France make surprising discovery among potatoes destined for Ireland – Irish Mirror

Clip • 11 Mins • 26 JAN • Today with David McCullagh

Earlier this month Revenue officers seized around 13 million cigarettes at the Port with an estimated value of €12.3 million. RTE’s reporter Maura Fay has been to the Port.

Listen to the investigation here: Revenue report – illegal cigarette smugglers | Today with David McCullagh – RTÉ Radio 1

Retailers Against Smuggling (RAS) has warned that when the Dublin Airport passenger cap is removed later this year, tobacco-smuggling will increase, unchecked.

The group expressed disappointment at the latest headline figures from the Revenue Commissioners, which show a sharp decline in both the volume and value of cigarette and tobacco seizures in 2025, compared to 2024.

Revenue’s Illegal Tobacco Product Research Surveys 2024 found that over one third (37%) of cigarette packs in circulation carried no Irish excise duty, either because they were illegally purchased or purchased outside the state.

This marks an increase from the 34% recorded in 2023, with figures including roll-your-own tobacco, for total estimated tax losses from tobacco products reaching €934 million in 2024.

The report also includes findings that cigarette seizure volumes plummeted by 58% – dropping from 112 million cigarettes to only 47 million – and the value of cigarette seizures fell by 55% – from approximately €96 million in 2024 to €43 million in 2025.

In total, Revenue reported that it seized €63 million worth of illegal tobacco products in 2025 – a 51% year-on-year decrease compared to 2024, when it seized a record €128 million worth of tobacco.

The 2024 seizure value mirrors levels seen in 2023, when they totalled €63 million, indicating a return to pre-2024 enforcement outcomes.

It added that seizures are barely scratching the surface of smuggled tobacco products entering Ireland, with comparisons based on Revenue’s Headline Results publications for 2023, 2024 and 2025.

‘The Problem Is Worsening’

RAS spokesperson Barry Gilsenan said, “The value of seizures is nowhere near reflective of reality.

“Smuggled tobacco continues to flood Ireland’s black market, and the problem is worsening.

“The new duty-free regulations alone are not enough.

“Revenue enforcement officers need to conduct more checks at ports and airports.

“Most critically, Revenue needs to hire more enforcement officers to match the growth in passenger arrivals in Ireland’s airports and ports, which are up 25% and 1.2%, respectively, from 2022 and 2024.

“We can reasonably expect passenger figures to increase in 2025 and 2026, and duty-free purchases to skyrocket, as the passenger cap at Dublin Airport is set to be removed this year.

“Without stronger enforcement, illicit tobacco sales will continue to soar.”

RAS has called for increased resources to combat the growing illicit tobacco market, while warning that a focus on large-scale seizures must be matched by more routine passenger searches at ports and airports.

Inadequate checks and enforcement mean passengers can arrive with substantial quantities of non-duty paid cigarettes, which are subsequently sold illegally.

The group notes that this undermines legitimate retailers and deprives the Exchequer of vital tax revenue.

Ireland has the second-most-expensive cigarettes in Europe, costing €17.03

Ireland is the second most costly country in the EU for cigarettes, a new study has revealed.

Vaping experts, Vape Superstore, have analysed the cost of cigarettes in each country to reveal where smokers spend the most on cigarettes, with only the UK beating out Ireland to the top spot in the EU.

The Government has progressively increased tobacco taxes over the years, making smoking an increasingly costly habit, with a pack cigarettes now costing on average €17.03.

It comes after the Government increased the price of a packet of cigarettes by 50 cent as part of Budget 2026.

The 50 cent increase brought the price of the most popular category of cigarettes to €18.95 – among the EU’s most expensive.

The cost for brands such as Silk Cut or Benson and Hedges is now up to €18.95(Image: Getty)

Campaigners have said the 50c increase on the excise duty on a packet of 20 cigarettes is “unfair” on law-abiding consumers and retailers in Ireland.

Ahead of the Budget, the smokers’ group Forest had urged finance minister Paschal Donohoe to freeze excise duty on tobacco, arguing that a further increase would drive more smokers into the arms of criminal gangs and other illicit traders.

Simon Clark, director of Forest, said: “Purchased legally, tobacco costs more in Ireland than any other country in Europe. This latest tax hike, while relatively modest compared to last year, will drive even more smokers to the black market.

“Alternatively, many will buy their tobacco abroad where the cost is often significantly cheaper than at home.”

He added: “Punishing consumers, especially those from poorer backgrounds, by repeatedly raising the tax on tobacco is not only unfair. It’s also counter-productive because it will hurt legitimate retailers in Ireland, many of whom can’t afford the loss of income from the sale of cigarettes and other tobacco products.”

The study by Vape Superstore found that the UK is the most expensive European country to buy a pack of cigarettes, costing €17.23, with Norwegian residents pay €13.75 (160.63 NOK) for one pack of cigarettes, making it the third most expensive country in Europe.

Meanwhile residents in the Marshall Islands pay €48 for one pack of cigarettes, the highest price in the world.

The remote island, 2,600 miles away from Australia, has a population of 37,000 people. The island relies on air and ship freight for deliveries due to its remote location, which inflates prices for a pack of cigarettes on the island.