Revealed: Black market tobacco continues to grow throughout the UK

Major new research commissioned by the Tobacco Manufacturers’ Association (TMA) has revealed the size of the black market in tobacco in the UK. The survey (http://www.the-tma.org.uk/wp-content/uploads/2016/08/UK-AIT-REPORT-2016-Final.pdf ) of 12,000 smokers, conducted in June 2016, found that 7 out of 10 smokers admit to purchasing tobacco from a variety of non-shop sources, e.g. abroad, friends and family, duty free, markets etc.

The research also reveals a number of regional trends across the UK’s 12 regions & nations

• London has the highest % of smokers using non-shop, the most prominent illegal internet sales activity, and the most visible underage selling activity
• Smokers in the NE are the most aware of illicit tobacco in their area. The NE also has the highest % of respondents who believe tobacco prices are excessive.
• The average price for illicit cigarettes (pack of 20) purchased in the UK is £4.11. However, there is considerable variation in price between the regions of the UK. The lowest average price of a pack of 20 cigarettes is £3.79 (Yorkshire & Humberside) whilst the highest is £4.69 (London). The average UK RRP for 20 duty-paid premium cigarettes is £9.61
• The average price for an illicit pouch of roll your own (RYO) tobacco (50g) purchased in the UK is £6.88. The lowest regional price is £6.55 (West Midlands) and the highest is £7.14 (East of England). The average UK RRP for 50g of duty-paid RYO is £19.66

Regional figures for 2014 and 2015 are available from the TMA.

Reacting to the results, the TMA Director General Giles Roca said:

“The Government’s high tax policy is shifting consumers towards illegal sources, losing the Treasury billions of pounds in lost tax. This survey also shows that black marketers are becoming more sophisticated in their sales techniques and are increasingly using social media to reach new customers.”

Industry response

As part of their response to the evidence of growth of UK smuggling, the UK Tobacco industry has extended their highly successful advertising campaign in UK airports. This campaign began in 2014 at Glasgow and Edinburgh airports. In 2015, Heathrow, Cardiff and Aberdeen were added. The 2016 campaign marks the third year of this campaign and for 2016 the campaign has been further extended to include Dover, the world's busiest passenger port. The campaign runs from August to October 2016, to cover the busy summer months. Photos of the campaign are available from the TMA: media@the-tma.org.uk