The rise in counterfeit cigarettes in Ireland has led to a significant loss of tax revenue, with the illegal trade estimated to have cost the country €810 million in 2025. Organized crime is fueling the illegal trade, with young people acting as couriers and cigarette wholesalers being involved.
Counterfeit cigarettes rose by two-thirds last year according to the new analysis, meaning more than one-in-three cigarettes consumed in Ireland are counterfeit or contraband. The research, commissioned by tobacco giant Phillip Morris, comes after a series of major illegal factories were discovered across Ireland.
These gangs are also exploiting the border with Northern Ireland, by setting up factories only a few miles from the Republic including one which could produce 1.5 million Other smuggled and counterfeit cigarette brands are typically imported from Romania, Poland and Spain, as well as from free trade zones in the Middle East, the independent analysis by KPMG found. The Europe-wide report estimates that more than 1.1 billion unregulated illegal cigarettes were consumed in Ireland in 2025.
This equates to more than €810 million in lost tax revenue, up by €76 million from the year before, money that could otherwise support public services or ease pressure on the Exchequer at a time when Irish households continue to face cost-of-living pressures. Meanwhile, legitimate Irish retailers are left competing with criminals selling untaxed products at cut-price levels.
One shopkeeper at the coalface described how easy it is to get the illegal cigs with young people on e-scooters acting as couriers forstores in North Dublin. He said: ‘It’s definitely getting worse, people can get them everywhere, there’s WhatsApp groups, there’s Snapchat groups, there’s even young guys delivering now on e-scooters, there’s guys on bikes delivering drugs, hawking customers and they’re doing the same with illicit cigarettes.
‘It’s not independent cigarette wholesalers that are doing all of this, it’s being fueled by organised crime, they’ve got connections down the ports….. and they’re available everywhere, you just walk down the street and you’ll be able to get them. ’ Mr Callanan added: ‘Because we’ve become so expensive and there’s another product that people think is the same and is available for a cheaper price, we are losing customers - and you might say you make no money on cigarettes, but it’s a really important footfall driver for a small convenience store like myself.
’ Philip Morris Limited is now calling on the Irish Government to increase enforcement against illegal tobacco, including stronger penalties for those caught selling illegal products. It is also urging Dublin to use its forthcoming EU Presidency to work with European partners in tackling the inflow of illegal cigarettes
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