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The illicit tobacco market in New Zealand

Our Report indicates that the consumption of illicit tobacco declined at a slower rate than total consumption. This is due to a decline in volumes of both unbranded tobacco (10.6% p.a.) and contraband (8.9%) in 2022. As a result, illicit tobacco consumption as a proportion of total consumption represented approximately 12.1% in 2022, which is an increase of 0.6 pp from 2019. However, the share of illicit tobacco mix remained consistent with 2019. Unbranded tobacco accounted for the largest share, representing c.57% of the total illicit tobacco consumption, whereas the share of contraband increased marginally since 2019 to represent 43% of the total mix in 2022. Counterfeit accounted for only 0.1% of the total illicit consumption. If all of the illicit tobacco had been consumed in the legitimate market, it would have represented an excise amount of approximately NZD 247.8 million at the 2022 excise rate.