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May 24, 2019
56.6 Billion Illegal Cigarettes Consumed in the EU in 2014, Worth More Than €11bn in Lost Tax Revenue
New KPMG report for
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The source and type of products available on the illegal tobacco market have continued to evolve, while the upward trend of illegal trade levels in the EU has moderated in recent years. For example, in 2014, more than 8 out of 10 illegal cigarettes originated from outside the EU, which is a 10% increase compared to 2013. In contrast, flows within the EU continue to decline, driven by improved industry supply chain controls and narrowing price gaps between EU Member States.
“Overall levels of illicit cigarette consumption in the EU remained
essentially flat during 2014, however the illegal tobacco market
remains sizeable and continues to evolve. Our research shows that while
this is a problem that touches every Member State, caution is needed
particularly in countries that share borders with non-EU countries where
cigarettes are cheaper and where we continue to see high illicit
cigarette consumption levels,” commented
“Illicit whites” - cigarettes that are generally produced legally in a country but are smuggled into other countries where they have limited or no legal distribution - are also proliferating across the EU. According to KPMG, while smuggling of well-known brands has become less common, the number of illicit whites has grown exponentially from virtually zero in 2006 to 37% of all illegal cigarettes in 2014.
The illegal cigarette market continues to deprive Member States of much
needed revenues, hurts legitimate businesses, and fosters crime in local
communities. Eliminating the illegal tobacco industry requires
governments, law enforcement agencies, manufacturers, and retailers to
work together to stop the criminals responsible for this illegal trade.
Additional findings in the report include:
-
Illicit whites brand flows grew by 8% to 21.1 billion cigarettes in
2014, with consumption of such products being most prevalent in
Poland ,Italy ,Spain andGreece ; - In 2014, 10.4% of all cigarettes consumed in the EU were illegal, compared to 10.5% in 2013 and 11.1% in 2012;
- Total illicit cigarette volumes declined by 3.3% in 2014 to 56.6 billion cigarettes.
The 2014 KPMG study on the illicit cigarette market in the EU,
NOTES TO EDITORS
KPMG Study on the illicit cigarette consumption in the EU:
KPMG has conducted this study every year since 2006, as part of the
Cooperation Agreement between
The study is the only comprehensive annual measurement of the black market for cigarettes in the EU. Access to a wider set of data sources, as well as methodology improvements in line with feedback received from external stakeholders, have allowed KPMG to further refine the completeness of the analysis over the years. The study’s methodology is presented in detail in the report.
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About
It employs more than 57,000 people worldwide and has over 200 brands in
its portfolio, with its cigarettes chosen by one in eight of the world’s
one billion smokers. Alongside offering tobacco products,
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About JTI:
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View source version on businesswire.com: http://www.businesswire.com/news/home/20150528005560/en/
Source:
KPMG
(for enquiries on the research and methodology)
Jessica
Liebmann
Tel: +44 (0) 20 7311 3245
Email: Jessica.Liebmann@kpmg.co.uk
or
BAT
Press Office
Will Hill / Anna Vickerstaff
+44 (0) 20 7845
2888 (24 hours)
email: press_office@bat.com
or
Imperial
Tobacco Group PLC
Iain Watkins
+ 44 117 933 7481
or
JTI
Press Office
email: pressoffice@jti.com
T:
+41 22 703 0291
or
Philip Morris International Press Office
email:
media@pmi.com
T:
+41 58 242 4500