Cyprus and Greece report divergent trends in EU illegal cigarette market

A KPMG report presented at a Brussels conference highlighted that illegal cigarettes account for roughly 10% of total tobacco consumption in the European Union, amounting to about 42 billion units in 2025 and generating estimated tax losses of €16.7 billion for member states.

Cyprus recorded one of the highest shares of illicit tobacco use in Europe, with illegal cigarettes representing 24% of its total consumption. The share of illegal products rose by 10.2% compared with 2024, placing Cyprus among the seven EU countries where illicit cigarettes exceed one‑fifth of total sales. The report noted a 7% rise in overall illegal tobacco consumption EU‑wide, driven largely by counterfeit products.

Conversely, Greece achieved the largest year‑over‑year decline among EU‑27 members, cutting its illegal cigarette share to 14.1% of total consumption in 2025—a drop of 3.4 percentage points from the previous year. This reduction translated to a loss of €330 million in public revenues, down from €438 million in 2024, reflecting intensified enforcement and stronger cooperation between public and private sectors.