NZ’s Growing Illicit Tobacco Trade Calls For Decisive Action With More Than 1 In 4 Cigarettes Smoked In NZ Being Illegal

A new independent report on New Zealand’s illicit tobacco trade shows the illegal market is growing rapidly in size and in sophistication.

The report, commissioned by Imperial Brands and BAT New Zealand, found 27% of total tobacco consumed in 2024 was illicit, an increase from 23.6% the previous year.

This means one in every four cigarettes smoked in New Zealand is illegal. Lost annual excise revenue is estimated at over $600 million.

The growth in illicit tobacco is being driven by a rapid rise in the consumption of smuggled cigarettes, also known as contraband, which increased by 41.9%. Contraband tobacco is tobacco brought into New Zealand illegally and resold.

The industry had been tracking the illicit trade for several years, with successive reports showing year-on-year growth.

An Imperial Brands Spokesperson noted:

“The report shows New Zealand’s illicit tobacco trade continues to escalate.”

“New Zealand need only look to Australia to see what the future could look like. It would be a mistake to assume the violence that comes with an uncontrollable illicit market couldn’t happen in New Zealand.

A BATNZ Spokesperson agrees:

“Australia presents a case study of what can occur when the threat of illicit tobacco is not addressed early.”

“Australia’s delayed response has allowed illicit trade to grow exponentially in a post-COVID environment, making it much more difficult to bring it back under control. New Zealand has the opportunity to avoid this mistake by taking decisive action now.”

The report can be read here: https://www.batnz.com/content/dam/endmarkets/nz/en/download/media/15-August-2025-New_Zealands_growing_illicit_tobacco_trade_calls_for_decisive_action_with_more_than_one_in_four_cigarettes_smoked_in_New_Zealand_being_illegal.pdf

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