Black market sale of fake cigarettes is booming, study finds

A boom in the black market sale of fake cigarettes is funding organised crime, shopkeepers believe.

New figures show 11 out of 12 regions are reporting an increase in the illicit trade over the last year, with Scotland seeing a rise of more than 20 per cent.

While Northern Ireland and the South East of England had seen rises of 15.9 per cent and 14.5 per cent respectively.

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The report also revealed the UK is ranked third out of 38 countries when it comes to volume of illicit tobacco products - with one in four smoked said to be contraband.

While London has seen a surge of 109 per cent since 2020, according to the data, commissioned by Philip Morris International, via KPMG.

Further data surveying 200 London shop owners revealed a third are convinced sales of such products are fuelling dangerous and organised crime.

The poll revealed youth tobacco and vape use, violent crime, and money laundering linked to the illicit trade are higher in London’s poorest communitiesThe poll revealed youth tobacco and vape use, violent crime, and money laundering linked to the illicit trade are higher in London’s poorest communities
The poll revealed youth tobacco and vape use, violent crime, and money laundering linked to the illicit trade are higher in London’s poorest communities | Philip Morris Ltd

Illicit trade has surged

The poll revealed youth tobacco and vape use, violent crime, and money laundering linked to the illicit trade are higher in London’s poorest communities.

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And the cost-of-living crisis is seen as a contributing factor, with half of all shopkeepers citing economic hardship and the demand for cheaper products as drivers of illicit use.

Former Scotland Yard detective, Will O’Reilly, revealed undercover operatives had visited 60 retailers in the capital and more than half were openly selling harmful and unregulated smoking products.

Will O’Reilly said: “This is a pattern I’ve observed across the country, with stores selling dangerous illicit cigarettes and vapes.

“Eliminating the illegal cigarette market alone could strip organised crime of profits equivalent to funding over 115,000 new police officers.”

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It also emerged 52 per cent of retailers polled fear higher taxes on legal products might boost the illicit market.

Similarly, 44 per cent are concerned restrictive regulations on legitimate alternatives could inadvertently increase such activity.

Will O'Reily said: "Eliminating the illegal cigarette market alone could strip organised crime of profits equivalent to funding over 115,000 new police officers."Will O'Reily said: "Eliminating the illegal cigarette market alone could strip organised crime of profits equivalent to funding over 115,000 new police officers."
Will O'Reily said: "Eliminating the illegal cigarette market alone could strip organised crime of profits equivalent to funding over 115,000 new police officers." | Philip Morris Ltd

The need for stronger law enforcement

Respondents also showed their commitment to supporting anti-illicit product efforts by purchasing only from legitimate sources and reporting illegal activities.

Despite this, 40 per cent doubt illicit use will drop by 2030, England’s smoke-free goal.

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Seven in 10 would also like to see stronger law enforcement and three quarters would back harsher penalties for rule breakers.

While 71 per cent want to see improved access to legitimate, affordable smoke-free alternatives like e-cigarettes and heated tobacco products.

Duncan Cunningham, from Philip Morris Limited (PML), added: “The illicit tobacco and vape trade poses a direct and serious threat to public health, preying on deprived communities and driving youth uptake.

“With the UK already among Europe’s largest illicit cigarette markets, we must strike a careful balance: safeguarding people, especially youth, from harmful illicit products, while ensuring adult smokers have access to smoke-free alternatives.

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“To truly achieve a smoke-free future, we must protect future generations and support the 6.4 million adult smokers in the UK by maintaining access to regulated alternatives that have already helped millions quit cigarettes.”

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