Moldova identified as major source for Europe's illicit tobacco market

A KPMG study commissioned by Philip Morris for 2025 shows that illicit cigarette consumption in the European Union reached 41.8 billion units, representing 10.3% of total cigarette use and a rise of more than 7% over the previous year. The illegal market is estimated to have caused a loss of €16.7 billion in tax revenue across EU member states.

The report highlights the Republic of Moldova as a key supplier and destination for contraband, feeding neighboring EU countries such as Romania. In Portugal, the share of illicit cigarettes rose to 2.7% of total consumption in 2025—about 220 million illegal cigarettes—resulting in an estimated €45 million loss of fiscal revenue. France remains the most affected EU market, with illicit cigarettes accounting for 41% of its consumption.

The findings underscore the growing challenge of tobacco smuggling, border control weaknesses, and the need for coordinated policy responses to curb the economic and public‑health impacts of the black‑market trade.