Illicit Trade Continues Growing as EU Reviews Tobacco Traceability System

As the European Commission prepares to revise the Tobacco Products Directive (TPD), a debate is gaining further traction over the effectiveness of the European Union’s tobacco track and trace system.

On one hand, the Commission’s own evaluation argues that the EU traceability system has helped maintain a long-term downward trend in illicit trade since becoming operational in 2019.

On the other hand, evidence suggests that Europe’s illicit tobacco market is becoming larger and more sophisticated. This finding is also supported by the latest KPMG study. Even though the study is financed by the tobacco industry, it confirms that cross-border trade, contraband, and counterfeits are rampant and increasingly affecting public health policies.

The differing assessments come as stakeholders submit their contributions as part of a public consultation on the TPD, which is expected to culminate in legislative proposals by the end of 2026.