Australia’s nicotine use soars 40% on black market cigarettes

SYDNEY – Nicotine consumption has surged in Australia as the result of a rapid rise in the sale of illegal tobacco products, undermining the impact of strict government measures designed to eradicate smoking.

The quantity of nicotine consumed increased by almost 40 per cent from 2017 to 2025, the Australian Bureau of Statistics said on June 3, three times the population growth over the same period.

That has corresponded with a surge in the availability of illegal cigarettes, which are imported by criminal organisations and evade high government taxes.

In its findings, the bureau estimates that as much as 80 per cent of all nicotine consumption in Australia in 2025 was illegal. That is up from around 10 per cent in December 2016.

The statistics are the result of an experimental new estimate of illegal tobacco consumption by the bureau that weighs wastewater analysis against tobacco sales and tax data.

Australia has been seen for decades as a global leader in anti-smoking policy, introducing plain packaging laws in 2011 to make cigarettes look drab and unappealing, as well as rapid rises in the price of tobacco over the past decade.

Excise taxes for tobacco rose by at least 12 per cent annually from 2013 to 2020.

Some experts argue that the strict measures have fuelled the black market for tobacco by driving smokers to buy cheaper products from illicit sources.

A pack of 20 cigarettes from a leading brand currently costs between A$40 (S$37) and A$60 in Australia, while an illegal packet can cost less than half the price. “Greater accessibility and affordability of illicit tobacco products are likely to have enabled higher tobacco consumption,” the bureau said in its study. BLOOMBERG