New research from Philip Morris Limited (PML), the UK and Ireland affiliate of Philip Morris International (PMI), reveals that almost 90 per cent of retailers are regularly asked by customers if they stock illicit nicotine products, demonstrating widespread demand for illicit products in communities across the UK.
According to the nationwide survey of 200 UK convenience store managers, more than two thirds (68 per cent) are asked for illicit nicotine products – vapes or cigarettes – two-to-six times per week. 71 per cent of retailers believe they are aware of shops in their area selling illicit nicotine products. The survey highlights the clear awareness of the black market that is operating at the local level.
At the national level, the most recent KPMG Report on Illicit Cigarette Consumption in Europe shows that UK illicit cigarette consumption has increased by almost 50 per cent in the past five years. This is despite the declining rate of legal cigarette sales, where volumes have decreased by almost one-quarter over the past five years. The illicit cigarette market is now denying the economy of £3.2bn.
“Illicit trade is a low-risk, high-reward operation for organised crime groups," said Will O’Reilly, illicit trade consultant and former senior Met Police Officer. "Gangs are now taking control of the full illicit supply chain, from production to sales. The increasing presence of store fronts set up to sell illicit cigarettes is undercutting legitimate retailers and embedding criminals in local communities.
Catherine Goger, Illicit Trade Prevention Manager at PMLImage: PML
Catherine Goger, Illicit Trade Prevention Manager at PML, said: “Illicit trade is out of control in the UK. Retailers are encountering demand week in, week out, and many can see illegal products being sold a stone’s throw away. When the issue becomes this widespread and visible, it undermines the compliant retailers running responsible businesses that serve their communities.”
“Regulation plays a vital role, but it must be supported by consistent enforcement and more effective communication about the dangers of illicit trade to consumers. Together, improved detection, enforcement and education will help protect consumers and retailers. Without this, the illicit trade will continue to threaten the livelihoods of convenience stores.”