Achieving true IMPACT against criminals and leading the battle to eradicate illegal trade.
Fighting illicit trade: Essential for delivering a smoke-free future
PMI IMPACT
4 min readSTOP ILLEGAL blog
4 min readWhy is confronting illicit trade key to delivering a smoke-free future?
The world has an unprecedented opportunity to eradicate smoking. Science and technology have enabled the development of better alternatives for adults who would otherwise continue to smoke, moving a smoke-free future to within our grasp.
To deliver a smoke-free future, we must ensure that there are no illegal actors sustaining a black market for cigarettes and other tobacco products. Cigarettes, for instance, remain one of the most common illegally traded goods in the world, with as much as 12 percent of total cigarette sales (excl. China) sourced from the black market.
Smoke-free products can be a much better choice for adult smokers than continuing to smoke, so it is also paramount to protect consumers from fakes and prevent the smuggling and counterfeiting of our products.
Securing our supply chain
For PMI, eliminating the illicit tobacco trade has been a long-standing priority. We focus our efforts on securing our supply chain and protecting our products. And we do it by leveraging technology and innovation for the better: From multiple applications of authentication and security technologies to track and trace our products across the supply chain, to the use of machine learning to identify and prevent illegal online sales, technology is helping us detect and address illicit trade.
But if we truly want to have an impact on deterring illicit tobacco flows, and protect consumers and our brands from smugglers and counterfeiters, our internal efforts need to be coupled with strong cross-sectoral collaboration and partnerships.
A holistic approach for a successful collaboration
No one can fight illicit trade on their own. Public-private partnerships based on an inclusive, commonsense approach by governments, the private sector, and civil society are vital to helping combat the practice.
This is why we set up PMI IMPACT, a major initiative to fund projects around the world to address and tackle illicit trade. PMI IMPACT fosters cross-sector and public-private collaboration, as it supports a wide range of organizations that fight illegal trade through research, awareness-raising, developing technical solutions, funding equipment, and training and communication initiatives.
In today’s hyper-connected world—with growing concerns around global security, the proliferation of criminal organizations, and the surge of new digital tools—we believe that it’s more important than ever to sustain our collective efforts and promote an inclusive dialogue around solutions to tackle this global issue.
To deliver a smoke-free future, it is imperative to eradicate illicit trade wherever it exists.
The STOP ILLEGAL blog sheds light on all aspects of the illicit trade problem, and provides insights from experts around the world.
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How illicit trade threatens society
The worldwide problem of illicit trade is a serious one. The amount of money lost to illicit flows is staggering: More than USD 2 trillion annually, according to the United Nations (2020). So, it’s not surprising that when discussing illicit trade and its negative effects, we often focus on the economic costs.
How illicit trade threatens society -
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PMI’s focus on supply chain controls and product protection to help prevent illicit trade
At PMI, as we advance on our journey toward delivering a smoke-free future, we know we must increase our efforts to secure both our supply chain and the products we sell. It is an integral part of our work to drive operational excellence, and to protect consumers and our brands from smugglers and counterfeiters. Ensuring our customers are sold only genuine and legal goods is fundamental.
PMI’s focus on supply chain controls and product protection to help prevent illicit trade -
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KPMG report finds European illicit cigarette market continues to grow despite overall decline in consumption
KPMG’s annual study on illicit cigarette consumption in the European Union (EU), the United Kingdom, Norway and Switzerland has reported that while total cigarette consumption declined last year in the EU, illicit cigarette consumption increased in the region by 3.9% in 2021 - or 1.3 billion cigarettes – reaching 35.5 billion cigarettes.
KPMG report finds European illicit cigarette market continues to grow despite overall decline in consumption -
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As adult smokers in France turn to counterfeits, we must focus on raising consumer awareness
In France, evidence suggests that adult smokers are increasingly turning to counterfeit cigarettes. This is mainly due to the affordability of these illegal products, how easy they are to access, and the lack of consumer awareness around the risks of counterfeits.
As adult smokers in France turn to counterfeits, we must focus on raising consumer awareness -
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Protecting consumers: How do you avoid fakes online?
The internet has had a profound effect on how people trade. It has enabled countless legitimate businesses to expand their customer base, providing access to markets across the globe.
Protecting consumers: How do you avoid fakes online? -
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Pandemic caused surge in counterfeiting crime in the EU, EUIPO-EUROPOL report confirms
A joint report from Europol and the European Union Intellectual Property Office (EUIPO) has found that the EU’s criminal economy was bolstered by the pandemic.
Pandemic caused surge in counterfeiting crime in the EU, EUIPO-EUROPOL report confirms -
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Raids on clandestine cigarette factories in Europe are on the rise
An organized criminal group involved in the illicit production and distribution of fake cigarettes—destined mainly for the French market—has been dismantled in Slovenia.
Raids on clandestine cigarette factories in Europe are on the rise -
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Standing up to the black market and safeguarding a smoke-free future
The fight against illicit trade continues unabated in 2022. As we begin another year, many of the challenges surrounding this global problem remain as troubling as ever.
Standing up to the black market and safeguarding a smoke-free future -
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2022 offers an opportunity to revamp our fight against illicit trade
This includes public-private partnerships, technological innovation as a disruptor of illicit operations, and concrete enforcement against illicit activities.
2022 offers an opportunity to revamp our fight against illicit trade
Latest articles
PMI IMPACT: Fighting illicit trade with new projects from its third funding round
Our global initiative, which has now provided 67 grants since its 2016 launch, aims to foster public-private collaboration and expertise in order to counter illicit trade and its far-reaching threats.
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2.2trillion
The value of illicit products flowing globally from cross-border criminal operations, such as the smuggling of arms, tobacco, or pharmaceuticals is USD 2.2 trillion.
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2.5percent
The volume of counterfeit and pirated goods stands at 2.5 percent of total international trade.
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460billion
Between 10 and 12 percent of tobacco products consumed globally every year are illicit, corresponding to an estimated 400–460 billion cigarettes.
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50billion
Up to USD 50 billion are lost globally every year in tax revenues due to the illicit tobacco trade.
Videos
10 Videos Found
23 Jun 2022
Illicit cigarette consumption in the EU, UK, Norway and Switzerland during 2021
A new KPMG annual study on illicit cigarette consumption estimates that the illicit market has increased in the EU during 2021...
2:56
04 Jul 2022
What is PMI doing to confront the growth the illicit tobacco products in France?
Adult smokers are increasingly turning to counterfeit cigarettes, due to affordability, access, and lack of consumer awareness about the risks.
3:33
21 Jun 2022
Protecting consumers: How do you avoid fakes online?
Martha O’Neill, a manager in the Illicit Trade Prevention team at Philip Morris International (PMI), discusses the role of the internet...
3:32
21 Jan 2022
Standing up to the black market and safeguarding a smoke-free future
As the new year unfolds, Alvise Giustiniani, PMI’s VP Illicit Trade Prevention, shares his insights on the importance of sustaining our efforts.
3:38
16 Jun 2022
PMI’s supply chain controls and illicit trade prevention efforts (2022)
For Philip Morris International, eliminating the illicit tobacco trade has been a long-standing priority, as it is an integral part of our work...
2:39
01 Jun 2021
Fighting Illegal Trade: Why It's Vital For A Smoke-free Future
We spoke with Frederic Millet, Global Head of Illicit Trade Prevention Supply Chain Integrity, to find out about how we will achieve a smoke-free future.
4:34
23 Jul 2021
PMI IMPACT: Fighting Illegal Trade In All Forms
Alvise Giustiniani, Vice President, Illicit Trade Prevention, Philip Morris International discusses fighting illegal trade in all forms.
1:54
23 Jul 2021
PMI IMPACT: We Need a Network To Fight A Network
Carlos Moreira, CEO & Founder, WISeKey Expert Council Member of PMI IMPACT discusses the need for a network to fight a network.
2:32
12 Aug 2021
How INTA Is Fighting Illegal Trade With Help From PMI IMPACT
30 million tons of cargo pass through global ports each day–source: United Nations Conference on Trade and Development.
3:34
09 Sep 2021
PMI IMPACT: Securing the Seas
Nearly 250 vessels strong, Hellenic Coast Guard has one of the largest fleets in the Mediterranean.
2:21