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11 Jun 2026
KPMG report says illegal cigarette consumption in Cyprus continued to rise

Nicosia, Cyprus. Cyprus continues to record an upward trend in illegal cigarette consumption, according to a report released on Thursday by consulting and advisory firm KPMG. The annual report said illegal cigarettes accounted for 16.3 per cent of total consumption in Cyprus.


Cyprus figures

The report, conducted for Philip Morris International, said the share of illegal cigarettes in Cyprus rose by two percentage points compared with 2024.

A total of 160 million illegal cigarettes were consumed locally during the year, the report said. Lost revenue for public coffers was estimated at €27 million, up from €22 million in 2024.

European Union trend

Across the European Union, illicit cigarette consumption exceeded 10 per cent of total volume for the first time since 2014, according to the report.

The study said 41.8 billion illegal cigarettes were consumed across the bloc, representing 10.3 per cent of the total market. Public revenue losses across the European Union were estimated at €16.7 billion.

Country comparisons and heated tobacco

France remained the country with the highest level of illegal cigarette consumption at 41.4 per cent, followed by Belgium at 24.8 per cent and the Netherlands at more than 22 per cent.

The study also assessed illicit heated tobacco products, which it said currently account for 1.2 per cent of total consumption.

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