Illicit cigarette consumption in EU remains high in 2023

In 2023, illicit cigarette consumption in the European Union remained alarmingly high, with over 35 billion illicit cigarettes consumed across the 27 member states. This figure is nearly consistent with the previous year's statistics, indicating a persistent issue. France emerged as the largest market for illicit cigarettes, accounting for 47.7% of the total consumption in the EU. The overall illicit consumption across 38 European countries reached 52.2 billion cigarettes, marking the fifth consecutive year of growth in this area. Philip Morris International (PMI) highlighted the ongoing challenges posed by contraband and counterfeit cigarettes, which accounted for 12.7 billion of the illicit consumption. The report emphasized that organized crime is increasingly targeting higher-taxed markets, exacerbating the problem. Governments in the EU faced significant financial losses, with an estimated €11.6 billion in tax revenue lost due to illicit trade, up from €11.3 billion in 2022. Despite the troubling trends, the report noted that in 25 of the 38 countries surveyed, the share of illicit cigarette consumption was either stable or declining compared to the previous year. This suggests that some regions are making progress in combating the issue. PMI called for a collaborative approach with law enforcement and regulators to address the challenges posed by illicit trade effectively. The KPMG report, which has been published annually since 2006, expanded its scope this year to include all Balkan countries, reflecting a broader understanding of the illicit tobacco market in Europe. The findings underscore the need for continued efforts to reduce smoking prevalence and protect public health.