Retailers report rising demand for illicit nicotine products, survey finds
March 11, 2026
Illicit nicotine products seized in Birmingham (Photo: PML)
Nearly nine in ten UK retailers say customers regularly ask for illicit nicotine products, according to new research commissioned by Philip Morris Limited (PML).
The nationwide survey of 200 convenience store managers found that 88 per cent are asked whether they stock illicit cigarettes or vapes at least once a week.
More than two-thirds of retailers said such requests occur between two and six times per week.
The research also found that 71 per cent of respondents believe there are shops in their local area selling illicit nicotine products.
PML said the findings highlight widespread awareness of the illicit market within local communities.
Separate data from the KPMG Report on Illicit Cigarette Consumption in Europe indicates that illicit cigarette consumption in the UK has risen by nearly 50 per cent over the past five years.
During the same period, legal cigarette sales have declined by almost a quarter.
According to the report, the illicit cigarette market is now estimated to cost the UK economy around £3.2 billion in lost revenue.
Will O’Reilly, an illicit trade consultant and former senior Metropolitan Police officer, said organised crime groups are increasingly involved in the trade.
“Illicit trade is a low-risk, high-reward operation for organised crime groups,” he said. “Gangs are now taking control of the full illicit supply chain, from production to sales.”
Catherine Goger, illicit trade prevention manager at PML, said illicit sales were undermining legitimate retailers.
“Retailers are encountering demand week in, week out, and many can see illegal products being sold a stone’s throw away,” she said. “When the issue becomes this widespread and visible, it undermines the compliant retailers running responsible businesses that serve their communities.”
Goger added that stronger enforcement and better consumer awareness were needed to address the issue.
“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,” she said.
“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.”
