A study carried out by the firm EY, published this Sunday, established that the parallel tobacco market in France represented 38% of the total market in 2023.
A worrying increase. 2.3 billion euros is what counterfeiting and contraband tobacco trafficking in France represents in 2023, according to a study carried out by the firm EY. A parallel economy that is growing more and more.
Very profitable, traffic is not limited to imports. Indeed, since 2021, at least six clandestine cigarette production factories have been dismantled on French territory.
“It is estimated that creating a factory in France provides an 80% return on investment in three months. We have networks which are able to make this supply, to produce in France and above all to distribute directly via street sellers and social networks,” Guéric Jacquet, partner in the EY firm, detailed to CNEWS.
Tobacconists worried about this situation
With these illegal circuits, but also purchases made abroad between 2019 and 2023, the parallel tobacco market in France increased from 23% to 38% of the total tobacco market in the country.
For tobacconists, the very high price of tobacco in France is to blame in this situation. In fact, on national territory, the price of a pack of cigarettes is twice as expensive as in Portugal or Spain.
“The first major challenge is to stop the increase on the French market. This is a recurring request from the confederation and all tobacconists. A moratorium on taxation to avoid creating an additional draft with border markets,” Philippe Coy, president of the Confederation of Tobacco Stores of France, explained to CNEWS.
In 2023, the drop in legal sales has caused a shortfall of nearly 4 billion euros for the State.
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