Illegal tobacco has become an increasingly visible presence in communities across the UK, with growing public concern that authorities are failing to keep pace with the expanding black market, reveals a report published today (28).
New research released by JTI UK to mark the first anniversary of its It Costs More Than You Think campaign suggests widespread awareness of the illicit trade, rising pressure on legitimate retailers and mounting fears that further tobacco tax increases could push even more smokers towards illegal products.
The results demonstrate that illegal tobacco is no longer hidden in UK communities and is widely recognised – with 85 per cent of the public surveyed having heard of illegal tobacco, up from 83 per cent in 2025. Nearly a third (31 per cent) have also been offered illegal tobacco products.
A major enforcement and accountability gap was also clear from the research, with 82 per cent stating there is not enough enforcement to stop illegal tobacco, and 80% saying politicians are not doing enough to tackle the black market.
2026’s Local Focus
In 2026, the It Costs More Than You Think campaign has seen test purchasers visiting independent stores selling tobacco across 14 UK locations to understand the scale of illegal tobacco on local high streets. So far, 219 stores were found to sell illegal tobacco – all evidence gathered from the test purchases has been handed to Trading Standards and HM Revenue & Customs.
In the past year, JTI UK has run over 1,044 public-facing adverts across digital and OOH as part of the campaign to raise awareness of the threat of illegal tobacco.
Economic Squeeze
The research identified that the cost-of-living crisis is also impacting behaviour with half (50 per cent) of people surveyed saying that the current economic climate makes buying illegal tobacco more justifiable.
Tax rises are also widely seen as fuelling the illegal market, with 80 per cent surveyed believing that rising taxes will bolster demand for illegal tobacco.
From 1 October 2026, smokers will face a double tax increase, with the annual inflation plus two per cent tobacco duty uplift expected to be applied alongside a one-off additional tax rise on cigarettes and hand-rolling tobacco, introduced alongside the new vaping products duty. JTI’s survey found that 57 per cent of smokers surveyed say that the October tax rises will make them more likely to seek out illegal tobacco.
The results showcased that the public now understand that illegal tobacco is not a victimless trade, with 75 per cent finding increasing crime and violence associated with illegal tobacco in local communities very concerning.
However, 30 per cent were still surprised that illegal tobacco funds other serious crimes in local communities, such as drugs, guns and human trafficking. The It Costs More Than You Think campaign aims to educate the general public on the wider dangers of the illegal tobacco market.
From shop floor
At BB Superstore and Post Office in Pontefract, tobacco sales are significantly down because of the growing illicit trade, and that’s having a knock-on effect on wider basket sales too.
The store owner Bobby Singh said, "Many retailers are seeing the impact, with illegal tobacco continuing to undermine legitimate businesses and local communities.
“The It Costs More Than You Think campaign is an important way to raise public awareness. People need to understand that buying illegal tobacco doesn’t just harm honest retailers, it can also fund organised criminal activity and put consumers at risk.
“We need stronger enforcement, greater public awareness, and tougher penalties for those caught selling illegal products. Honest retailers who play by the rules shouldn’t be at a disadvantage while those operating outside the law continue to profit.”
According to Dale Stacey, Communications Manager at JTI UK, these results are a strong indicator that illegal tobacco is increasingly well known to the public, with many believing that current enforcement is inadequate to tackle this growing issue.
“This isn’t a problem that’s going to go away on its own. The It Costs More than You Think campaign has made positive steps, but we know there’s much more to do – it’s clear that collaboration across the industry and with the Government is needed to shut down the illegal trade," Stacey said.
“JTI is calling on the Government to treat illegal tobacco as a serious economic and social issue with three simple asks; cancel the double taxation on tobacco, introduce a licensing scheme, and increase penalties to fund enforcement. Otherwise, legitimate retailers will continue to lose out on sales and crime levels rise will rise in our communities.”
JTI is working with retail partners to call for the implementation of a £10,000 on-the-spot fine to anyone found to be trading illegal tobacco. These fines could be ringfenced and then reinvested into Trading Standards frontline services, funding additional officers and resource to drive action, and covering the administration of a future licensing scheme.
The It Costs More Than You Think campaign aims to raise awareness of the illegal tobacco trade with both the public and retailers – and calls for positive policy change. This year, JTI has added the results of its local undercover test purchasing operations to the site to demonstrate the scale of the illegal tobacco market across the country.