One in four cigarettes smoked in the UK is illicit, according to a 2024 report on illegal tobacco consumption in Europe by KPMG.

The report, commissioned by Philip Morris International, also reveals that the UK’s illicit cigarette market remains the third largest in Europe by both volume and share of consumption, despite the country ranking in the bottom fifth for the number of people who smoke.

Illicit cigarette use remains particularly high in urban areas, including London, the West Midlands and the North West.

Since 2023, nearly 26% of all cigarettes smoked in the UK have been illicit – equivalent to 5.9 billion cigarettes and an estimated £3.15bn in lost tax revenue for the government.

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The findings highlight the immediate risks faced by legitimate retailers, particularly in the convenience and wholesale sectors, with legal sales falling by 14% last year.

Catherine Goger, illicit trade prevention manager at Philip Morris Limited (PML), said: “We recognise that this remains one of the most urgent threats to the livelihoods of convenience retailers in the UK and their communities, with consumers exposed to unregulated, potentially dangerous products from illicit sellers who show little regard for what they sell or to whom.

“We are using robust local intelligence, tracking illicit flows and driving action on the ground.”

Former Scotland Yard DCI and illicit trade prevention consultant Will O’Reilly added: “This year, PML has increased the number of undercover test purchases we carry out on their behalf. We’ve visited hundreds of stores across the UK to gather intelligence on, and evidence of, suspected illicit activity.

“The information captured from this is routinely shared with Trading Standards and enforcement agencies to aid prosecutions and disrupt the increasingly complex and industrialised illegal supply chain run by organised crime groups.”

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