The market contraband cigarettes continues to grow in Europe. According to a recent Kpmg study commissioned by Philip Morris International, a total of 27 billion smuggled cigarettes were smoked in the 35,5 EU countries last year. The figure is up by 1,3 billion (+3,9%) compared to 2020 and represents 8,1% of total cigarette consumption throughout the European Union.
Smuggled cigarettes: Italy against the trend
In ItalyHowever, the situation is different. As in 2020, our country confirms itself in sharp contrast with the rest of the continent, with consumption that in 2021 stopped at 1,4 billion smuggled cigarettes. In this case, the figure is down by as much as 800 million (-36%) compared to 2020 and represents just 2,2% of the total number of cigarettes consumed in Italy last year (against 3,5% of previous 12 months).
In France there is a boom in smuggled cigarettes
The driving force behind the counterfeit cigarette market in Europe is instead France, where in 2021 consumption shot up by a third (+33%), reaching a peak of 15,1 billion illicit cigarettes, which represent 29% of the overall market (+13% compared to 2017).
Taxes: smuggled cigarettes steal 10,4 billion from the EU
From a financial point of view, the report highlights that, if all smuggled cigarettes had been bought legally, European governments would have collected 10,4 billion euros more in taxes last year.
Italy lost 272 million, but the figure is improving
In Italy alone, the loss of revenue was 272 million euros: an impressive figure, but still 36% lower than in 2020. In one year, therefore, a revenue of around 100 million was recovered.
Commentary by Philip Morris International
“We are convinced that consumers should have incentives not to resort to illicit cigarettes – comments Gregoire Verdeaux, Senior Vice President, PMI External Relations – Ensuring the availability and knowledge of smokeless alternatives for those millions of adult smokers who do not quit should be the our common priority in Europe”.
