Project SUN 2017 results | KPMG | UK
close
Share with your friends

Project SUN 2017

Project SUN 2017 results

The illicit cigarette market in the EU, Norway and Switzerland, 2017.

Illicit cigarettes in the EU, Norway & Switzerland.

Project SUN is KPMG's annual study that estimates the scale and development of the illicit cigarette market in the EU, Norway and Switzerland, commissioned by the Royal United Services Institute for Defence and Security Services.

 

Key findings:

  • In 2017, the Counterfeit and Contraband (C&C) cigarette consumption in the EU was estimated at 8.7% of total consumption, accounting for 44.7 billion cigarettes.
    • The volume of C&C continued to decline; the 7.4% reduction was more pronounced than the legal domestic consumption decline of 2.5%.
    • The C&C proportion of overall consumption was the lowest since 2008.
    • The volume of C&C resulted in a tax loss of €10 billion, making illicit cigarettes one of the largest sources of overall consumption.
  • Despite the overall decline, C&C grew in countries with the largest price differences with source countries.
  • C&C fell in markets where there was evidence of positive law enforcement activity or a favourable economic climate.

Connect with us