Revealed: Black Market Tobacco Continues to Grow Throughout the UK

LONDON, September 12, 2016 /PRNewswire/ --

Major new research commissioned by the Tobacco Manufacturers' Association (TMA) has revealed the size of the black market in tobacco in the UK. The survey (http://www.the-tma.org.uk/wp-content/uploads/2016/08/UK-AIT-REPORT-2016-Final.pdf ) of 12,000 smokers, conducted in June 2016, found that 7 out of 10 smokers admit to purchasing tobacco from a variety of non-shop sources, e.g. abroad, friends and family, duty free, markets etc.

The research also reveals a number of regional trends across the UK's 12 regions & nations 

• London has the highest % of smokers using non-shop, the most prominent illegal internet sales activity, and the most visible underage selling activity
• Smokers in the NE are the most aware of illicit tobacco in their area. The NE also has the highest % of respondents who believe tobacco prices are excessive.
• The average price for illicit cigarettes (pack of 20) purchased in the UK is £4.11.  However, there is considerable variation in price between the regions of the UK. The lowest average price of a pack of 20 cigarettes is £3.79 (Yorkshire & Humberside) whilst the highest is £4.69 (London). The average UK RRP for 20 duty-paid premium cigarettes is £9.61
• The average price for an illicit pouch of roll your own (RYO) tobacco (50g) purchased in the UK is £6.88.  The lowest regional price is £6.55 (West Midlands) and the highest is £7.14 (East of England).  The average UK RRP for 50g of duty-paid RYO is £19.66

   
                                                  
                            % of             
                  % of     smokers    % of                   % of                
                 smokers   aware of  smokers    % of       smokers     Average
                 who use   illicit   aware of  smokers    who believe  price of    Average
                 non-shop  tobacco   illegal   aware of     tobacco    illicit    price of
                           in local  internet  underage   prices are  cigarettes   Illicit
                            area      sales*    sales      excessive  (20 pack)    RYO(50g)

England            72        20        14         13          84         4.13         6.89
Scotland           67        17        14         13          85         4.15         6.56
Wales              62        21        13         11          85         3.84         7.08
N Ireland          72        27         6         14          86         3.84         6.77
East Midlands      70        21        12         12          83         3.86         6.73
East of England    68        19        17         11          85         3.99         7.14
London             82        26        23         19          75         4.69         6.74
North East         67        39         5         11          88         3.90         6.65
North West         70        22        12         14          87         3.93         6.98
South East         70        16        13         12          86         4.07         7.04
South West         66        19        16         12          85         4.05         7.06
West Midlands      66        20        11         12          83         3.84         6.55
Yorkshire and
Humberside         70        18         6         11          87         3.79         6.87
UK - 2016          70%      20%       14%         13%         85%      GBP4.11      GBP6.88
UK - 2015          n/a      19%       12%         12%         n/a      GBP3.84      GBP6.83

Regional figures for 2014 and 2015 are available from the TMA.

Reacting to the results, the TMA Director General Giles Roca said:

"The Government's high tax policy is shifting consumers towards illegal sources, losing the Treasury billions of pounds in lost tax. This survey also shows that black marketers are becoming more sophisticated in their sales techniques and are increasingly using social media to reach new customers." 

Industry response 

As part of their response to the evidence of growth of UK smuggling, the UK Tobacco industry has extended their highly successful advertising campaign in UK airports. This campaign began in 2014 at Glasgow and Edinburgh airports. In 2015, Heathrow, Cardiff and Aberdeen were added. The 2016 campaign marks the third year of this campaign and for 2016 the campaign has been further extended to include Dover, the world's busiest passenger port. The campaign runs from August to October 2016, to cover the busy summer months. Photos of the campaign are available from the TMA: media@the-tma.org.uk