Around a quarter of all cigarettes smoked in the UK are illicit, meaning they are either smuggled imports that have evaded UK duty, or they are counterfeits of legitimate brands.
The news comes from consultancy firm KPMG, with the trade in illicit cigarettes and tobacco costing the Treasury around £3.15bn a year in lost revenue.
The UK is the third largest consumer of illicit tobacco in Europe, with an estimated 5.9 billion illegal cigarettes consumed here each year, equivalent to almost 26% of all smokes.
Philip Morris Limited, the firm behind Marlboro, among other brands, says the research highlights risks for retailers, who saw a 14% drop in sales in 2024.
The firm’s illicit trade prevention manager said KPMG’s report highlights one of the more “urgent threats to the livelihoods of convenience retailers in the UK”, while also warning that smokers choosing illicit tobacco and cigarettes are being “exposed to unregulated, potentially dangerous products from illicit sellers who show little regard for what they sell, or to whom”.
