Europe logs first cases of illegal HTP consumption, while Ukraine stays 99.9% legal
Photo: Volumes of illegal HTP consumption were recorded for the first time in Europe (Getty Images)
In 2024, the consumption of smuggled heated tobacco products (HTPs) in the European Union amounted to 0.4 billion sticks, representing 0.9% of total consumption, citing the results of a recent KPMG study commissioned by Philip Morris Products SA.
The highest volumes of smuggling were detected in Germany (0.15 billion sticks) and Poland (0.08 billion), while the United Kingdom recorded the highest percentage share (7.8%). To date, no counterfeit flows have been detected.
During the presentation of the study, Massimo Andolina, President of PMI in the European region, emphasized that when regulating smoke-free products, it is important to avoid repeating the mistakes made in cigarette regulation, which gave rise to the illegal cigarette market.
"Excessive and unpredictable taxation, extreme bans, and insufficient law enforcement action against illegal players — these can and will lead to the same disaster we see today in the cigarette sector in countries that have adopted such regulation. And we are beginning to observe the same pattern in countries that have completely banned the legal sale of smoke-free products," Andolina said.
In turn, Nicolas Otte, Head of Illicit Trade Prevention at Philip Morris International, told RBC-Ukraine that the growth of the illegal market is a large-scale transnational problem. Therefore, governments must make decisions based on facts and past experiences to avoid repeating the mistakes made with cigarettes.
"That mistake costs Europe €19.4 billion annually," he stressed.
Governments, the private sector, scientists, the public, experts, and former law enforcement officials should all sit at the same table and work together on regulation policies, the PMI representative believes.
"Policy must never be developed behind closed doors in ministerial offices. Consultations are needed with experts from various fields, with different experiences and knowledge, especially with the private sector. Who knows the industry better than business?" he concluded.
For the first time, KPMG included data on illegal HTP consumption in selected European countries: Czechia, Germany, Greece, Hungary, Italy, Lithuania, Poland, Romania, Spain, and the United Kingdom.
At the same time, a separate study conducted by the independent research agency NielsenIQ in the first quarter of 2024 — also commissioned by Philip Morris International — found that 99.9% of collected HTP packs in Ukraine complied with national labeling laws.
Previously, RBC-Ukraine reported that in 2024, smokers in the European Union consumed 38.9 billion illegal cigarettes — an increase of 10.8% compared to 2023.
