London: Criminal networks across Europe are increasingly deploying modern technology — including drones, budget airlines, and social media platforms — to smuggle and sell illicit cigarettes, helping them evade law enforcement and tax authorities, according to a new report by consulting firm KPMG.
The annual report, commissioned by tobacco giant Philip Morris International, revealed that nearly 40 billion illegal cigarettes were consumed across 38 European countries in 2024 — a 10.8% increase from the previous year. The findings were based on field research, including the collection of discarded cigarette packs and interviews with law enforcement officials.
KPMG noted that the spike in black-market cigarette activity is partly driven by higher tobacco taxes and retail prices, particularly in markets like France and the Netherlands. These economic pressures, the report suggests, are pushing consumers to turn to cheaper illicit alternatives.
Sophisticated Tactics to Avoid Detection
The report describes how organized crime groups are adapting rapidly, moving away from bulk shipments to smaller, frequent deliveries. Smugglers are increasingly using budget airlines and trains to transport goods, a tactic that offers more anonymity and lower risk.
Perhaps most striking is the growing use of drones to fly small loads of illegal tobacco across borders. These unmanned devices, coupled with the rise in direct-to-consumer sales via social media, are making it harder for authorities to track the illegal trade.
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The report also observed a shift in inventory strategy. Smugglers are now holding less stock at any given time, which has led to smaller seizures by law enforcement — a tactic designed to reduce the impact of potential raids and limit financial losses.
Changing Landscape Since the Pandemic
KPMG noted that this trend follows an earlier transformation in the illicit trade landscape in 2020, when the COVID-19 pandemic forced smugglers to relocate production facilities closer to consumer markets. This move both minimized disruption from border closures and reduced the chances of detection.
Big tobacco companies, including Philip Morris, continue to argue that rising taxes are fueling the black market by making legal cigarettes unaffordable for many smokers.
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However, public health advocates and institutions like the World Bank dispute this, insisting that tobacco taxation remains one of the most effective tools for reducing consumption and improving public health — while also generating vital revenue for governments.
