European Union illegal cigarette market costs 13 billion euros

A report from the European Court of Auditors (ECA) reveals that nearly one in ten cigarettes consumed in the European Union originates from the illegal market. This illicit trade results in an estimated annual loss of approximately 13 billion euros for EU and member state budgets.

The report highlights a significant shift in criminal tactics: instead of relying solely on smuggling, organized crime groups are increasingly establishing illegal production facilities within the EU itself. By producing cigarettes closer to target markets, these groups shorten supply chains and increase efficiency.

In Belgium, authorities have seen a surge in activity, closing twelve illegal factories so far in 2026. One major facility in Lommel was capable of producing one million cigarettes per hour across four production lines. Similarly, in Spain, a massive operation led to the seizure of three million packs of cigarettes valued at 15 million euros, along with five tons of raw tobacco, resulting in 20 arrests.