Illegal cigarette trade in the European Union rose to an estimated 65.5 billion sticks in 2012, about the size of the combined legal markets of France and Portugal, according to a KPMG study.

The increase in illicit trade to an estimated 11.1 per cent of total cigarette consumption from 10.4 per cent in 2011 represents the sixth consecutive year of record levels, according to the annual KPMG Project Star study released by Philip Morris International. Cigarette consumption in the EU declined 5.7 per cent to 593 billion sticks, the study shows.
Countries with the largest increases in illicit trade from 2011 are the United Kingdom, Greece, Italy and Estonia.
Illicit whites, cigarettes manufactured to be smuggled, represent nearly one-quarter of the illegal trade in 2012, according to the study. Growth in illicit whites primarily is due to new brands originating in Belarus, according to the study. Market share for three major illicit white brands, Classic, Jin Ling and American Legend, declined to 33 per cent of illicit-white sales from 76 per cent in 2009, the study states. (ci)