UK and France confront record surge in illicit cigarette markets

A KPMG analysis commissioned by Philip Morris International shows that illicit cigarettes now dominate a large share of the market in both the United Kingdom and France. In the UK, 45% of cigarettes consumed in 2025 were illegal, with 13% bought legally abroad and 32.3% counterfeit or contraband, resulting in an estimated loss of £4.46 billion in tax revenue. The rise is attributed to the growth of organised‑crime “front” shops and domestic factories producing hundreds of millions of unregistered cigarettes.

In France, the same report indicates that 53.6% of cigarettes in 2025 were outside the legal tobacconist network, with the Pays de la Loire region most affected. Nationally, 21 billion illicit cigarettes were consumed, and 26.54 billion were bought outside the legal French market. The study warns that the parallel market threatens local retailers, public‑health goals and tax collection, calling for stronger enforcement and licensing.

Both governments are urged to act against the organised‑crime networks that profit from untaxed tobacco, which also fuels other illicit activities such as drug trafficking and fraud.