Leading the battle to eradicate illegal trade.
Fighting illicit trade: Essential for delivering a smoke-free future
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.
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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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500billion
As much as 15 percent of tobacco products consumed globally every year are illicit, close to 500 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.
Latest articles
Illicit trade numbers in Europe tell us change is needed
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.
3 min
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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.
Videos
9 Videos Found
KPMG 2023 report: Illicit cigarette consumption in Europe
Piano music starts.
Male voiceover:
In Europe, consumption of illicit cigarettes has grown for the fifth consecutive year.
Words on screen read: Consumption of illicit cigarettes in Europe Growth for the fifth consecutive year
Source on screen reads: “Illicit cigarette consumption in Europe: Results for the calendar year 2023”, KPMG September 2024 [Commissioned by Philip Morris Products SA]
Male voiceover:
According to the latest report from KPMG, 52.2 billion contraband and counterfeit cigarettes were consumed across 38 European countries in 2023.
Of those, 35.2 billion were consumed in the European Union.
Words on screen:
£11.6 billion in tax revenue losses
8.3% of total cigarette consumption in the EU was illicit
Male voiceover:
Around 20 billion counterfeit cigarettes were consumed in Europe last year, making them one of the largest sources of illicit consumption on the continent.
Counterfeit consumption is highest in France, the largest illicit market in Europe.
Notably, France consumed 16.8 billion illicit cigarettes in 2023.
Nearly half the total illicit consumption of the EU.
Words on screen:
France: 47.7% of total illicit cigarette consumption in the EU
Estimated tax revenue loss of £7.3 billion in France.
Male voiceover:
Organized crime has expanded its network of illegal factories in Western Europe, and continues to target smokers who struggle to afford legitimate products in higher-taxed and higher-priced EU member states.
Words on screen:
Organized crime at least 113 illicit manufacturing sites raided in 22 European countries in 2023.
Male voiceover:
Criminals are thriving while putting consumers at risk.
Illicit trade deprives governments of excise revenues and undermines smoking cessation policies.
Map appears on screen
There is, however, encouraging news in the KPMG report: Italy, Poland, Romania and Spain are among the countries that have witnessed sizeable decreases in illicit cigarette consumption.
Words on screen:
25 European countries share of illicit consumption stable or declining vs 2022.
Male voiceover:
The KPMG report should serve as a reminder of how vital it is to wage a diligent fight against illicit trade.
Millions of adult smokers are turning to the black market instead of quitting cigarettes or, for those who don’t quit, switching to better, smoke-free alternatives.
Words on screen:
Diligent fight against illicit trade
Prevent millions of adult smokers from turning to the black market
Male voiceover:
So, what is the best way to address this growing problem in Europe, and beyond?
Words on screen:
Addressing this problem in Europe and beyond
Male voiceover:
Law enforcement action and deterrent penalties should be the cornerstone of any strategy to tackle illicit trade.
Predicable fiscal calendars are also much-needed instruments in addressing illicit trade and working to reduce smoking prevalence.
Equally, awareness and education are powerful tools.
Words on screen:
Effective law enforcement
Predictable fiscal calendars
Awareness and education
Male voiceover:
Preventing illicit trade is central to the success of public health and public security in Europe and beyond.
Words on screen:
Delivering a smoke-free future
Philip Morris International Crest on screen.
Male voiceover:
In Europe, consumption of illicit cigarettes has grown for the fifth consecutive year.
Words on screen read: Consumption of illicit cigarettes in Europe Growth for the fifth consecutive year
Source on screen reads: “Illicit cigarette consumption in Europe: Results for the calendar year 2023”, KPMG September 2024 [Commissioned by Philip Morris Products SA]
Male voiceover:
According to the latest report from KPMG, 52.2 billion contraband and counterfeit cigarettes were consumed across 38 European countries in 2023.
Of those, 35.2 billion were consumed in the European Union.
Words on screen:
£11.6 billion in tax revenue losses
8.3% of total cigarette consumption in the EU was illicit
Male voiceover:
Around 20 billion counterfeit cigarettes were consumed in Europe last year, making them one of the largest sources of illicit consumption on the continent.
Counterfeit consumption is highest in France, the largest illicit market in Europe.
Notably, France consumed 16.8 billion illicit cigarettes in 2023.
Nearly half the total illicit consumption of the EU.
Words on screen:
France: 47.7% of total illicit cigarette consumption in the EU
Estimated tax revenue loss of £7.3 billion in France.
Male voiceover:
Organized crime has expanded its network of illegal factories in Western Europe, and continues to target smokers who struggle to afford legitimate products in higher-taxed and higher-priced EU member states.
Words on screen:
Organized crime at least 113 illicit manufacturing sites raided in 22 European countries in 2023.
Male voiceover:
Criminals are thriving while putting consumers at risk.
Illicit trade deprives governments of excise revenues and undermines smoking cessation policies.
Map appears on screen
There is, however, encouraging news in the KPMG report: Italy, Poland, Romania and Spain are among the countries that have witnessed sizeable decreases in illicit cigarette consumption.
Words on screen:
25 European countries share of illicit consumption stable or declining vs 2022.
Male voiceover:
The KPMG report should serve as a reminder of how vital it is to wage a diligent fight against illicit trade.
Millions of adult smokers are turning to the black market instead of quitting cigarettes or, for those who don’t quit, switching to better, smoke-free alternatives.
Words on screen:
Diligent fight against illicit trade
Prevent millions of adult smokers from turning to the black market
Male voiceover:
So, what is the best way to address this growing problem in Europe, and beyond?
Words on screen:
Addressing this problem in Europe and beyond
Male voiceover:
Law enforcement action and deterrent penalties should be the cornerstone of any strategy to tackle illicit trade.
Predicable fiscal calendars are also much-needed instruments in addressing illicit trade and working to reduce smoking prevalence.
Equally, awareness and education are powerful tools.
Words on screen:
Effective law enforcement
Predictable fiscal calendars
Awareness and education
Male voiceover:
Preventing illicit trade is central to the success of public health and public security in Europe and beyond.
Words on screen:
Delivering a smoke-free future
Philip Morris International Crest on screen.
