Latvia is experiencing the third fastest cigarette smuggling in Europe / day

Among them, Latvia has also had the largest increase in cigarette smuggling in the Baltic States – in Lithuania, cigarette smuggling has increased by 2.2 percentage points, while in Estonia, cigarette smuggling consumption has been reduced by 4.2 percentage points.

In Europe as a whole last year, the fastest consumption of smuggled cigarettes in the Netherlands (+10.2 percentage points), Hungary (+5.6 percentage points), Latvia (+4.5 percentage points), as well as Finland and France (+4.4 percentage points).

Meanwhile, the highest reduction in cigarette smuggling in 2024 was observed in Moldova (-9.2 percentage points), Bosnia and Herzegovina (-6.2 percentage points), Greece (-6.2 percentage points) and Ukraine (-5.7 percentage points).

The KPMG study shows that in 2024, 38.9 billion illegal cigarettes were consumed in Europe, the highest level since 2015, accounting for 9.2 % of the total consumption of cigarettes. As a result, European countries lost up to EUR 14.9 billion due to taxes, which in turn has stimulated the flourishing and strengthening of various organized crime groups in the region.

« We are once again observing a worrying trend that in Latvia in recent years, the amount of smuggling and counterfeit cigarettes and other tobacco products is constantly increasing. Obviously, excise tax policy has not been effective. A poor quality is not in line with any quality standards.

The KPMG study concluded that the increase in illegal cigarettes in 2024 was mainly contributed to France and the Netherlands. The situation in France, where the largest illegal cigarette market in Europe is located, was particularly highlighted, and in the year 2024 there was the highest increase in illegal consumption.

In France, 18.7 billion illegal cigarettes were consumed in 2024, of which nearly 7.8 billion were counterfeits. In the Netherlands, on the other hand, the amount of illegal cigarettes over the year was more than doubled, increasing by 1.1 billion and reaching 17.9 % of total consumption. If these cigarettes were legally purchased, another € 9.4 billion would be raised in taxes in France and nearly € 900 million in the Netherlands.

Contrary to France and the Netherlands, countries such as Bulgaria, Greece, Italy and Portugal, as well as Ukraine, have shown significant success in limiting the illegal tobacco market. For example, in Greece, the consumption of illegal cigarettes in 2024 decreased by 6.2 percentage points, reaching 17.5%, which is the highest reduction in the country

A KPMG study, in cooperation with Philip Morris International, is studying the situation in 38 European countries (27 EU Member States, as well as in Albania, Bosnia and Herzegovina, Kosovo, Moldova, Montenegro, Northern Macedonia, Norway, Norway, Serbia, Switzerland, Ukraine, Ukraine and UK). In these countries, a total of 52.2 billion illegal cigarettes were consumed in 2024, accounting for 10 % of total consumption. The total tax revenue loss was estimated at EUR 19.4 billion.