The tobacco black market in NZ in 2025

I’ve been sent a copy of a report by FTI Consulting on the tobacco black market in NZ. It is referenced here by Retail NZ. It is 63 pages long and full of data. It is produced for the three main tobacco companies in NZ (not surprisingly they are against their product being stolen). Some of the findings are:

• The black market grew from 27.2% to 33.5% of the total NZ market
• Over half the black market is contraband
• Legal tobacco consumption fell by 19%
• The estimated lost revenue to the Government from the tobacco blackmarket is $817 million in excise tax and GST. Black market sales pay 0% excise tax, 0% GST and 0% income tax!
• In 2025, New Zealand Customs Service reported intercepting 7.7 tonnes of illicit tobacco in 1,701 interceptions
• Legal tobacco in NZ costs double Singapore and Hong Kong and seven times as much as in Japan, Taiwan and Korea
  

It reminds me that the previous Government’s policy was to eventually entirely ban all legal tobacco sales, so that 100% of tobacco consumption in NZ would then be the black market! Gangs were very upset when this Government reversed this policy.