DATACART
27 JUNE 2025 ASIAN TRADER 15
wo major trends are shaping the UK’s
tobacco and nicotine retail landscape –
and both present challenges for law
enforcement and retailers alike.
According to the latest KPMG report com
missioned by Philip Morris International, illicit
cigarette consumption in the UK remained stub
bornly high in 2024, with 5.94 billion cigarettes
consumed through illegal channels. While this
marks a marginal improvement on the 2023
figure of 6.71 billion, the proportion of total ciga
rette consumption that was illicit barely budged,
at 25.6 per cent. This means more than one in
four cigarettes smoked in the UK was illegal.
The figures show a notable 14 per cent drop in
counterfeit cigarettes, helping bring down total
counterfeit and contraband (C&C) volumes by
0.8 billion. But despite this, the sustained high
share of illicit consumption — up from 17.1 per
cent in 2020 — suggests ongoing systemic issues.
Counterfeit brands continue to dominate, with
3.41 billion fake sticks recorded in 2024, more
than five times the volume of any single branded
C&C variant.
Meanwhile, new data from retail analytics firm
Talysis highlights the immediate impact of the
UK’s disposable vape ban. In the first week alone
following the 1 June enforcement, vape sales
plummeted by over £5 million, falling from an
average of £23 million to £17.8 million.
The ban has hit some regions harder
than others. Scotland recorded the steep
est fall, down 36 per cent, followed by
Northern Ireland (-31 per cent) and the
North East (-27 per cent). Even the low
est drops – in Wales and Yorkshire – still
exceeded 20 per cent.
As retailers navigate these dual
disruptions, questions remain around
enforcement, compliance, and how the
market will rebalance in the coming
months.
Illicit cigarette consumption
holds steady
Vape sales tumble
post-disposables ban
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