European Union illegal cigarette market costs billions

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 black market activity 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: rather than relying solely on smuggling, organized crime groups are increasingly establishing illegal production facilities within the EU itself. By moving production closer to consumer markets, these groups shorten supply chains and increase efficiency.

In Belgium, authorities have seen a surge in such operations, including the closure of a massive facility in Lomel that could produce one million cigarettes per hour on each of its four lines. In Spain, a major crackdown led to the seizure of three million packs of cigarettes and five tons of raw tobacco, with products distributed across six EU member states.