Business Wire

NY-PHILIP-MORRIS-INTL

23.6.2022 10:02:13 CEST | Business Wire | Press release

Share
Illicit Market Continues to Grow in the EU, Largely Driven by Counterfeits in France, According to New Study by KPMG

Philip Morris International Inc. (PMI) (NYSE: PM) is calling for European regulators and policymakers to consider the millions of adult smokers who are turning to the illicit market instead of switching to better alternatives. The 2021 KPMG annual study on illicit cigarette consumption, commissioned by PMI, reveals that overall illicit cigarette consumption increased by an estimated 3.9%—or 1.3 billion cigarettes—last year, reaching 35.5 billion cigarettes consumed across European Union (EU) member states. Meanwhile, the study estimates that total EU cigarette consumption declined over the same period.

Based on the report, the increase of illicit consumption in the EU was largely driven by an estimated 33% increase in counterfeit consumption in France, where it grew to 8.0 billion cigarettes last year. Overall, France remains the largest market for illicit cigarettes in the EU, with a total of 15.1 billion illicit cigarettes consumed in 2021, comprising 29% of total cigarette consumption in the country, which represents a significant growth from 13% in 2017.

“The findings of the KPMG Report should be a real wake-up call. It’s alarming that in countries that maintain high excise taxes on cigarettes, such as France, instead of driving a decrease in smoking prevalence, we see a rise in counterfeit cigarette consumption. In fact, in France in the past five years, while the average price of a pack of legitimate cigarettes has increased by more than half, the number of adult smokers has only marginally decreased,” said Gregoire Verdeaux, Senior Vice President, External Affairs, PMI. “But there is also hope. Other EU countries have adopted differentiated policies on alternatives to cigarettes that support the continued decline of cigarette consumption while reducing illicit trade, and they are already yielding encouraging results. The European Commission in Brussels should make this the foundation for the future.”

The annual KPMG report focuses on the consumption and flows of illicit cigarettes in 30 European countries—the 27 EU member states, as well as the United Kingdom, Norway, and Switzerland—and indicates that had these cigarettes been legally purchased, an additional €10.4 billion in taxes would have been collected by governments in the EU.

“Tax revenue losses will limit governments’ ability to invest in areas such as public safety, public services, or infrastructure, at a time when people across Europe are also facing higher prices of many basic goods. The risk that more adult smokers—especially those among the lower-income population—turn to illicit trade is now significant. This creates an even more urgent need to ensure that smoke-free alternatives are available and affordable for all, to enable them to make a better choice instead of buying from the black market,” added Verdeaux.

The KPMG report also shows that roughly half—16 out of 27—of the member states experienced declining or stable consumption of illicit cigarettes in 2021. Among these countries, Poland saw one of the largest declines in illicit volumes, showing a 3.7 percentage point decrease in its share of illicit cigarette consumption.

“The decreasing consumption of illicit cigarettes in countries like Poland is remarkable and reassuring. It showcases the impact of effective law enforcement against criminals profiting from illicit trade in a market where better alternatives to smoking are available and more affordable to adult smokers. These are outcomes other countries should aspire to emulate,” said Alvise Giustiniani, Vice President, Illicit Trade Prevention. “It has never been more important to provide in particular the most vulnerable in society with access to information, as well as to develop and implement innovative policies that truly include everyone and facilitate access to better alternatives.”

Counterfeit consumption was the main driver of illicit trade in the EU; consumption of fake cigarettes reached an estimated total of 12.3 billion—accounting for 34.6% of total illicit consumption. The study indicates that due to continued travel and border restrictions related to the COVID-19 pandemic, organized criminal groups shifted their focus toward manufacturing counterfeit cigarettes directly within EU borders. Interviews conducted by KPMG with seven different law enforcement agencies found that illegal manufacturing sites are increasingly moving west in Europe to get closer to higher-priced end markets, such as France and the U.K.

The continued growth of a black market where fake and unregulated cigarettes are easily available seriously undercuts legitimate efforts to reduce and eventually eliminate cigarette smoking.

“We are convinced that consumers need to be incentivized so that they don’t have to turn to illicit cigarettes. This means focusing on education and awareness, and ensuring the availability of better alternatives, such as scientifically substantiated smoke-free products,” added Verdeaux. “Making them accessible as a better option for millions of adult smokers in Europe who don’t quit should be our common top priority.”

A detailed overview of the results and methodology of the KPMG report is available here . For more information about PMI’s illicit trade prevention efforts, visit PMI.com .

Note to editors

In France, during the period 2017-2021, an average price of a pack of legitimate cigarettes has increased by 50%, to over €10, while the smoking prevalence has only marginally dropped by -1.4ppt to the current level of 25.5% (Source: Journal official yearly publication of WAP—2021 WAP ; EU Commission Excise Duty Tables yearly publication —2021; WAP 2005-2021; before 2004: price of most sold brand in France. Santé Publique France , public agency of Ministry of Health).

For PMI, eliminating the illicit tobacco trade has been a long-standing priority. The company collaborates with law enforcement agencies and other organizations all over the world to root out and shut down illegal activities, including counterfeiting and smuggling operations. PMI IMPACT is just one example of PMI’s commitment in this sector—it supports third-party projects aimed at reducing or preventing illegal trade. Ultimately, through PMI IMPACT (now in its third round of funding), PMI is growing and fostering an ecosystem of public and private actors to tackle illegal trade in all its forms.

PMI’s efforts to fight illicit trade are embedded in its day-to-day operations. The company implements preventive and protective measures as a means of supply chain control, uses cutting-edge track-and-trace technology, and holds all customers and suppliers to strict due-diligence standards and protocols. PMI continues to support relevant regulations like the FCTC Protocol to Eliminate Illicit Trade in Tobacco Products and the EU Tobacco Products Directives’ tracking-and-tracing provisions.

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International (PMI) is a leading international tobacco company working to deliver a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, vapor, and oral nicotine products, which are sold in markets outside the U.S. Since 2008, PMI has invested more than USD 9 billion to develop, scientifically substantiate, and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. The U.S. Food and Drug Administration (FDA) has authorized the marketing of versions of PMI’s IQOS Platform 1 devices and consumables as Modified Risk Tobacco Products (MRTPs), finding that exposure modification orders for these products are appropriate to promote the public health. As of March 31, 2022, PMI’s smoke-free products are available for sale in 71 markets, and PMI estimates that approximately 12.7 million adults around the world, excluding Russia and Ukraine, have already switched to IQOS and stopped smoking. With a strong foundation and significant expertise in life sciences, in February 2021 PMI announced its ambition to expand into wellness and healthcare areas and deliver innovative products and solutions that aim to address unmet consumer and patient needs. For more information, please visit www.pmi.com and www.pmiscience.com .

About Business Wire

Business Wire
Business Wire
101 California Street, 20th Floor
CA 94111 San Francisco

http://businesswire.com

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Indra Group Exceeds All Its Guidances in 2025 and Sets Even More Ambitious Guidances for 2026 Than Those Set Out in Its 'Leading the Future' Strategic Plan25.2.2026 23:08:00 CET | Press release

Results in fiscal year 2025Revenues increased by 13%, totaling €5.457 billion in 2025Indra Group sets financial guidances at least 17% higher than those foreseen in its Strategic Plan for 2026Indra Group announces thepayment of a €0.30 dividend per share (more than 20% above the dividend in 2024) charged to the earnings posted in 2025The results and the increase in the order intake confirm Indra Group’s industrial strength and its capacity to tackle and execute the major defence modernization programs Indra Group (MAD:IDR): • The fourth-quarter order intake in 2025 totaled €8.329 billion, raising thefull-year backlog to €16.083 billion (122% more than in 2024). The Defence backlog stood at €11.336 billion, far exceeding the target of more than €10 billion set for 2026. • Revenues increased by 13% in 2025 with respect to 2024, with double-digit year-on-year rises in Defence, ATM and Mobility Revenues recorded a 28% year-on-year rise in the final quarter of the year • EBITDA and EBIT rec

Belkin Introduces a New Accessory Collection for Samsung Galaxy S26 Series25.2.2026 19:00:00 CET | Press release

Including five ‘Designed for Samsung’ accessories plus more, the collection is engineered and optimized specifically for the Samsung Galaxy S26 seriesFrom fast Qi2 25W charging to Nano-Titan–enhanced screen protection, each product is engineered for everyday performance and durabilityThe lineup reinforces Belkin’s role as a trusted partner for next-generation Galaxy devices Belkin, a leading consumer electronics brand for over 40 years, today announced a new collection of accessories designed and optimized specifically for the Samsung Galaxy S26 series. From fast, reliable Qi2 25W charging to advanced screen protection engineered for ultrasonic fingerprint sensors and next-generation displays, every product in the collection is designed to meet the demands of Galaxy S26 users. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260225459906/en/ Belkin Introduces a New Accessory Collection for Samsung Galaxy S26 Series ‘Designed f

Andersen Consulting udvider sine kompetencer med Assure Consulting25.2.2026 18:58:00 CET | Pressemeddelelse

Andersen Consulting styrker sin platform med tilføjelsen af samarbejdspartneren Assure Consulting, et tysk managementkonsulentfirma med speciale i projektledelse og projektporteføljestyring. Assure Consulting blev grundlagt i 2003 og hjælper organisationer med at gennemføre komplekse projekter og transformationer. Firmaet hjælper kunder med at etablere og drive projektkontorer (PMO'er), styrke governance og porteføljestyring samt anvende klassiske, agile eller hybride projektledelsesmetoder, der er skræddersyet til deres behov. Assure Consulting yder også praktisk støtte til udrulning af store systemer og processer, integreret forandringsledelse i forbindelse med organisatoriske og kulturelle transformationer samt coaching- og træningsprogrammer, der er i overensstemmelse med internationalt anerkendte standarder for projektledelse, med henblik på at opbygge bæredygtige kompetencer i kundernes organisationer. "Dette samarbejde giver os mulighed for at skalere vores ekspertise inden for

OLX Launches Agentic AI Products to Transform Property Search and Car Sales at CLAIM AI in Lisbon25.2.2026 15:33:00 CET | Press release

OLX launches CompassGPT and AutoIQ, making OLX the leading verticalised platform scaling Agentic AI across the entire value chain - supporting millions of buyers while simultaneously empowering professional customers. The Agentic Products were unveiled at CLAIM AI in Lisbon, OLX’s premier flagship event, bringing together industry leaders to showcase practical, powerful AI innovation OLX’s leading investments and application of proprietary AI deliver faster, smarter, and more user-centric marketplace experiences, with more than 75 AI use cases already in the market, including 10 agentic AI use cases launched in H126 OLX Group, the largest and fastest growing platform for vertical transactions in Europe and South Africa, today unveiled two new Agentic AI-powered products at CLAIM AI, its invite-only Lisbon conference for marketplace innovators. Launching in key OLX markets, CompassGPT introduces a conversational assistant to real estate search, while AutoIQ provides dealers with automot

KleanNara Partners with Rimini Street to Accelerate Digital Transformation25.2.2026 15:00:00 CET | Press release

South Korea’s leading paper manufacturer cuts SAP ECC 6 and Oracle Database maintenance costs with Rimini Support™, freeing up funds and team focus for AI-driven innovation and growth Rimini Street, Inc. (Nasdaq: RMNI), the Software Support and Agentic AI ERP Company™, and the leading third-party support provider for Oracle, SAP and VMware software, today announced KleanNara has selected Rimini Street to provide support for its SAP ECC 6 and Oracle Database systems. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260225123422/en/ KleanNara Partners with Rimini Street to Accelerate Digital Transformation Founded in 1966, KleanNara is one of South Korea’s leading manufacturers of paper and hygiene products. Holding a 25% share of the white cardboard market, the company is known for its commitment to quality, sustainability and innovation, and continues to expand globally with a focus on ESG-driven, eco-friendly products. Breaki

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom
World GlobeA line styled icon from Orion Icon Library.HiddenA line styled icon from Orion Icon Library.Eye