The illicit tobacco market was estimated to account for 13.8% of tobacco smoked in 2023/4 compared to 21.7% in 2005/6, according to new tobacco duty gap data from HMRC.
The share of the illicit hand-rolled tobacco market decreased from 60.8% in 2005/6 to 22.9% last year.
While the illicit cigarette market dropped from 16.9% in 05/06 to 10.5% 23/24, it did make up a larger share of the cigarette market in 23/24 than 9.1% in 22/23.
Responding to the HMRC data, health charity Action on Smoking and Health (ASH) said the progress contradicts tobacco industry claims that regulation of tobacco and tax increases are “fueling the illicit market”.
It said the claims are not supported by the wider evidence nor the assessment published by HMRC.
“The progress the UK has made across the last few decades in reducing the size of the illicit market has been impressive and must be maintained. Well-worn tobacco industry arguments that regulations or taxes will explode the illicit market must be taken for what they are – the desperate attempts of a dying industry to prolong its existence,” said Hazel Cheeseman, chief executive of ASH.
“We can end the concerns about the illicit tobacco market for good by realising the government’s vision of smokefree country and supporting all of our 6 million smokers to stop.”
Responding to ASH, Philip Morris told Convenience Store its recent KPMG Report - that found one in four cigarettes consumed in the UK in 2024 were illicit - was the most comprehensive view of illicit cigarette consumption across Europe that has run for the past two decades.
”We commission this independent study - featuring real-world data - because we believe that an effective fight against the illicit trade in tobacco products requires a thorough understanding of its scope, evolution and trends. It is carried out by an extremely well-respected third party. Its established, independent methodologies have been validated by an external panel of experts that were especially appointed by KPMG,” said a spokesperson from Philip Morris.
”It’s staggering that ASH does not appear to be concerned about the growing availability of illicit cigarettes in the UK. Perhaps they should make the effort to talk to the thousands of responsible, hard-working convenience retailers we know have been intimidated by the criminals running illicit outlets near their stores.”
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