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Why 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, moving a smoke-free future to within our grasp. It’s paramount to protect consumers from fakes and prevent the smuggling and counterfeiting of our products.

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 15 percent of total cigarette sales (excl. China and the U.S.) sourced from the black market.

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.

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.

  • Fighting illicit trade: How can we tackle this global problem?

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  • 2.2  Trillion

     

    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.

     

  • 2.3 percent

     

    The volume of counterfeit and pirated goods stands at 2.3 percent of total international trade.

  • 500 billion

     

    As much as 15 percent of tobacco products consumed globally every year are illicit, close to 500 billion cigarettes.

  • 50 billion

     

    Up to USD 50 billion are lost globally every year in tax revenues due to the illicit tobacco trade.

Latest articles

Europe can’t afford to ignore the surge in illicit trade

Illicit cigarette consumption in the EU rose by 10.8% in 2024, reaching 38.9 billion cigarettes—nearly one in every ten smoked. This isn’t just a statistic—it’s a warning sign of a system under strain and a symptom of broader policy failure across Europe.

3 min read

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Illicit trade prevention

Illicit trade in Europe

3 min read

PMI is committed to encouraging an open dialogue about the most effective ways to combat illicit trade in tobacco products in Europe.

Leaders of change

Fighting illicit trade can help enable equal access to innovation

3 min read

Collaborative action to end the illegal trade in tobacco and nicotine products is key to improving public health for all.

Illicit trade prevention

Fighting illicit trade: How can we tackle this global problem?

7 min read

What is illicit trade? How does it impact society? How can we confront it? Why would doing this help deliver a smoke-free future, faster? On this page, we’ll answer these questions and highlight the strategies we are implementing.

Illicit trade prevention

Collaboration remains the key to success in the fight against illicit trade

6 min read

Public-private coalitions will continue to play a critical role in the fight against the flow of illicit goods.

Illicit trade prevention

Preventing illicit trade: PMI’s efforts, progress in 2021, and vision for the future

Eliminating illicit trade is a long-standing priority for PMI. In the tobacco sector, an estimated one in every 10 cigarettes smoked worldwide is illicit. This is causing governments to lose up to USD 50 billion in tax revenue each year.

Our progress

The crucial role played by technology and continued collaboration

6 min read

PMI is implementing world-class measures to secure its supply chain

Eliminating illicit trade, a long standing priority

Our priority is to fight illicit trade, secure our products from criminals, and protect our consumers.

Our progress in the fight against illicit trade

PMI work to develop workable and collaborative solutions to put an end to illegal tobacco trade.

Combatting the “global scourge” of illicit trade: Philip Morris International’s third funding round of PMI IMPACT

The selection of new grantees concludes the three funding rounds announced by PMI in May 2016. The implementation of these latest projects is expected to be completed by 2026.

Illicit trade prevention

Countering illegal trade needs a global response

3 min read

PMI IMPACT is bringing together public and private sector representatives from all over the world to fight illegal trade and related crimes.

Illicit trade prevention

Illicit whites: What are they, and how big is the problem?

3 min read

PMI is working with public and private organizations to prevent this global illegal trade in cigarettes and other tobacco products.

Illicit trade numbers in Europe tell us change is needed

3 min

The latest KPMG report in Europe paints a troubling picture: More than 52 billion illicit cigarettes were consumed in the continent in 2023, the highest number since 2019.

Illicit trade prevention

PMI IMPACT: We need a network to fight a network

Criminals operating in the illicit trade space are working in networks – not limited by laws or borders. They should be fought in the same way, creating connections across nations and between international law enforcement.


STOP ILLEGAL explores every aspect of the illicit trade problem and its far-reaching impacts, featuring blogs from our leaders and experts in the field.

See our stop illegal blog

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Illicit trade in numbers

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Leading global efforts to prevent illicit tobacco trade

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  • Fighting Illicit Trade—Resource Center

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Videos

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Tackling Illicit Trade: It’s time to consider novel policies

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2022 KPMG Report Illicit Cigarette Consumption

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What is PMI doing to confront the growth the illicit tobacco products in France?

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Protecting consumers: How do you avoid fakes online?

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Fighting Illegal Trade: Why It's Vital For A Smoke-free Future

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