From: Insight
Illicit tobacco consumption in Australia grew from 11.8% to 13.3% of total consumption in the 12 months to the end of June 2013, according to new research by KPMG.
The study, designed to provide a more robust measure of illicit tobacco trade in Australia following the introduction of plain packaging, also found a large increase in the consumption of illicit manufactured cigarettes. Historically, the illicit market in Australia has been a loose leaf market.
KPMG said the growth of contraband has been driven by strong growth of illicit whites – manufactured cigarette brands that are not legally registered for sale in any market, and are typically manufactured for the purposes of smuggling.
This increase has been in parallel with a reduction in consumption of unbranded tobacco as loose chop chop or in tubes (-40% versus 2012), KPMG reports.
