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Counterfeit Cigarettes Drive EU Illicit Market Above 10% for First Time Since 2014

$PMPress releaseJun 3, 2026, 4:00 AM ETRead the release

A KPMG study commissioned by Philip Morris International reveals that illicit cigarette consumption in the EU rose to 10.3% in 2025, driven primarily by a surge in counterfeit products. Counterfeit cigarettes now account for 44% of the illicit market, displacing traditional contraband flows and causing an estimated €16.7 billion in lost tax revenues across the EU.

Key figures

Eu illicit market share
10.3%
Eu illicit volume billion
41.8
Smoke free users millions
43
Counterfeit volume billion
18.3
Counterfeit share of illicit
44%
Eu lost tax revenue eur billion
16.7
Smoke free revenue share q1 2026
43%
Total european illicit volume billion
55.3
Total european lost tax revenue eur billion
22.4

AI analysis

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