The illicit tobacco trade is a growing problem in the UK. What is historically perceived as a handful of shopkeepers selling moderate volumes of product procured from a white van man, is now a sophisticated supply chain coordinated by organised crime gangs that are increasingly encroaching on the UK[i]. Illicit trade underscores violent organised crime, money laundering, and even terrorism and it strips the country of duty revenue[ii].
Across the UK, 6.7 billion counterfeit and contraband cigarettes were consumed in 2023[iii], meaning that over one in four cigarettes consumed were illicit[iv]. While studies show that the proportion of UK smokers decreases year-on-year[v], the most recent KPMG Report on Illicit Cigarette Consumption in Europe[vi] – commissioned by Philip Morris International – shows that UK illicit cigarette consumption, as a percentage of total cigarette consumption, accelerated by more than 20% from 2022 to 2023[vii]. As a result, the UK is the third-biggest consumer of illicit cigarettes in Europe, by volume – despite falling in the bottom-fifth for smoking prevalence[viii].
Catherine Goger
Illicit Trade Prevention Manager
Philip Morris
These tobacco products are produced with no regard for regulations and legislation. Fire-retardant rings are often absent, and illicit cigarettes can be contaminated with rodent droppings and even asbestos, according to lab results.
The growing problem of cheap illicit products undermines progress towards a smoke-free England by 2030, with pocket money-priced illegal disposable vapes and illicit cigarette packets costing as little as £5 each. Conversely, the duty revenue lost from illicit tobacco exceeds an estimated £3bn per annum[ix].
At the local level, we work with external consultants on covert operations across Great Britain and Northern Ireland to gather evidence that is shared with Trading Standards and other agencies, both at home and abroad.
The worsening issue of illicit trade in the UK serves as a reminder that we cannot afford to be complacent of its insidious nature – driving crime in our communities and putting adults who smoke at even greater risk.
Protecting retailers and keeping our society safe should be the cornerstone of any strategy to curb the illicit tobacco trade. Governments must be relentless against organised crime profiting from illicit trade in tobacco products. The illicit trade numbers in the UK should serve as an eye-opener: the UK government have a duty towards their constituents and must look into implementing innovative and long-lasting policies that aim to make all cigarettes a thing of the past – both legal and illegal ones.
References
[i] Report shows that Organised Crime Groups are locating production facilities closer to large end-markets (UK and France stand as two of the Top 3 European Markets by Counterfeit and Contraband volume – p.13), KMPG 2023 Report: Illicit cigarette consumption in Europe, p.10, KPMG report - Illicit Cigarette Consumption in Europe - 2023 Results
[ii] KMPG 2023 Report: Illicit cigarette consumption in Europe, p.217, KPMG report - Illicit Cigarette Consumption in Europe - 2023 Results
[iii]Ibid
[iv] KMPG 2023 Report: Illicit cigarette consumption in Europe, p.217, KPMG report - Illicit Cigarette Consumption in Europe - 2023 Results, Total Cigarette Consumption in 2023 was 26.09bn in 2023, of which 6.71 bn cigarettes was illicit (6.71/26.09 = 25.7%, ¼ = 25%)
[v] 12.9% in 2022 to 11.9% in 2023[v], Office for National Statistics (ONS), released 1 October 2024, ONS website, statistical bulletin, Adult smoking habits in the UK: 2023
[vi] Commissioned by Philip Morris International, KPMG report - Illicit Cigarette Consumption in Europe - 2023 Results
[vii] KMPG 2023 Report: Illicit cigarette consumption in Europe, p.217: 2022 (21.2%) versus 2023 (25.7%) (25.7/21.2) – 1 = 21.2%
[viii] Prevalence of Tobacco Use Among Adults in the WHO European Region, WHO, 2020, Prevalence of tobacco use among adults in the WHO European Region in 2020
[ix] KMPG 2023 Report: Illicit cigarette consumption in Europe, p.217, KPMG report - Illicit Cigarette Consumption in Europe - 2023 Results