Newsroom
Cyprus ranked among the European countries with the highest share of illicit cigarette consumption in 2025, according to findings presented this week at a conference in Brussels focused on illegal trade and security challenges across Europe.
The figures were released during an event organized by the Royal United Services Institute (RUSI) and the Transnational Alliance to Combat Illicit Trade (TRACIT), alongside the presentation of a KPMG study examining illegal tobacco and nicotine product consumption across the continent.
The report found that illicit cigarettes accounted for more than one-fifth of total cigarette consumption in seven European countries. France recorded the largest proportion at 41%, followed by Ireland at 35%, the United Kingdom at 32%, Belgium at 25%, Cyprus at 24%, the Netherlands at 22%, and Lithuania at 21%.
Cyprus also experienced one of the sharpest year-over-year increases in illicit and counterfeit cigarette consumption. The country's share climbed by 10.2% compared with 2024. Only Belgium, Estonia, and the United Kingdom reported similarly significant increases, with gains of 9.5%, 7.4%, and 6.7% respectively.
Across Europe, overall cigarette consumption declined by 4% in 2025, largely because of falling legal sales. At the same time, illegal cigarette use increased by 7%. Counterfeit products were a major factor behind that growth, with their presence in European Union markets expanding by 20% during the year.
Researchers estimated that consumers across EU member states used roughly 42 billion illicit cigarettes in 2025, equal to about 10% of all cigarette consumption. The spread of counterfeit tobacco products is believed to have cost governments approximately €17 billion in lost tax revenue.
Experts presenting the study said the illicit tobacco trade has become increasingly flexible and fragmented. Supply networks are now spread across multiple locations, while trafficking routes can adapt quickly to changing market conditions.
The report also found that production and distribution patterns are shifting geographically. Some countries have become important transit points used to route illegal tobacco products into neighboring markets.
Feedback gathered from customs officials, police agencies, tax authorities, and other enforcement bodies pointed to the need for stronger information sharing, better coordination, and closer cooperation between countries to curb the trade.
During the discussion, TRACIT Deputy Director-General and former Interpol legal adviser Stefano Betti addressed evolving forms of financial crime linked to illicit commerce, including schemes involving trade-based money laundering.
Participants also said that a growing share of illegal tobacco sales is taking place online rather than through traditional retail channels. Social media platforms, websites, and messaging applications are increasingly being used to market and distribute illicit products, creating new enforcement challenges for authorities across Europe.
