London’s black-market trade in illicit disposable vapes and cigarettes is fuelling serious and organised crime in the city, according to one in three convenience store owners.
An undercover investigation and study by Philip Morris Limited (PML) have revealed the extent of the problem, prompting urgent calls for action from retailers and industry experts.
The data, from KAM and commissioned by PML, found that youth tobacco and vape use, violent crime, and money laundering linked to the illicit trade are higher in London’s poorest communities.
The cost-of-living crisis was also discovered as a contributing factor, with half of all shopkeepers citing economic hardship and the demand for cheaper products as drivers of illicit use.
During a recent two-day sting operation, over half of London stores were found selling illicit cigarettes and vapes. Led by former Scotland Yard detective chief inspector Will O’Reilly, the investigation revealed a disturbing link between illegal products and the rise in crime. “Eliminating the illegal cigarette market alone could strip organised crime of profits equivalent to funding over 115,000 new police officers,” O’Reilly said.
These insights coincide with a newly published KPMG report, by Philip Morris International, highlighting the national scale of the problem. It found that the UK ranks third among 38 European countries for illicit tobacco consumption, with one in four cigarettes now illegal. The findings show an alarming rise in illicit cigarette use, with London seeing a surge of 109% since 2020.
Scotland saw the sharpest rise, with one in three cigarettes now illicit—a 20% increase in just one year, the highest in the UK.
Kamlesh Rathod, a London retailer affected, now views the illicit tobacco and vape trade as a major part of the broader retail crime crisis currently gripping the UK: “Retailers bear the brunt of the illicit tobacco and vape market, just as they do with shoplifting and in-store violence. While Trading Standards are seen as the primary solution in tackling this issue, the role of retailers is often overlooked. With better support, we could raise awareness of the dangers of illicit products and guide adult smokers toward legal alternatives.”
Retailers in London are calling for immediate action to tackle the issue, including:
- Stronger law enforcement (72%) and harsher penalties for offending retailers (76%),
- Police powers to shut down rogue stores (84%),
- Better access to regulated smoke-free alternatives like e-cigarettes and heated tobacco (72%),
- Additionally, nearly 40% doubt that illicit use will drop by 2030i, England’s smoke-free goal, and seven out of ten are committed to supporting anti-illicit product efforts.
PML said that these trends underscore the critical need for balanced policies that protect adult smokers’ access to regulated smoke-free alternatives while preventing people from being driven toward dangerous illicit products.
Duncan Cunningham director of external affairs at PML warned that the youth uptake is particularly concerning: “The illicit tobacco and vape trade poses a direct and serious threat to public health, preying on deprived communities and driving youth uptake. With the UK already among Europe’s largest illicit cigarette markets, we must strike a careful balance: safeguarding people, especially youth, from harmful illicit products, while ensuring adult smokers have access to smoke-free alternatives.”
“To truly achieve a smoke-free future, we must protect future generations and support the 6.4 million adult smokers in the UK by maintaining access to regulated alternatives that have already helped millions switch away from cigarettes,” Cunningham concluded.
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