Cyprus continues to experience an upward trend in the consumption of illegal cigarettes, according to a report released on Thursday by consulting and advisory firm KPMG.

This annual report, conducted for Philip Morris International, highlighted that across the European Union, illicit cigarette consumption has surpassed 10 per cent of total volume for the first time since 2014.

Within Cyprus, the proportion of illegal cigarettes is estimated at 16.3 per cent of total consumption, which represents a two percentage point increase compared to 2024.

The report also revealed that a total of 160 million illegal cigarettes were consumed locally during the year.

Lost revenue for public coffers is estimated at €27 million, compared to €22 million in 2024.

Across the European Union, 41.8 billion illegal cigarettes were consumed, amounting to 10.3 per cent of the total market, while public revenue losses reached €16.7 billion.

France remains the leader in illegal consumption, reaching 41.4 per cent, followed by Belgium at 24.8 per cent and the Netherlands exceeding 22 per cent.

The study also evaluated illicit heated tobacco products, which currently account for a limited 1.2 per cent of total consumption.