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ABS Estimates 80% of Tobacco Consumed in Australia Last Year Illegal Amid 'Rapid Growth' in Black Market
The bureau said total nicotine use rose 40% as illegal products became cheaper and more available, while legal tobacco consumption fell sharply.
On Wednesday, the Australian Bureau of Statistics reported that illegal products accounted for 80% of nicotine consumption in 2025, marking a dramatic increase from 12% in 2017.
Steep excise increases have tripled legal tobacco prices since 2016, driving smokers toward cheaper illicit alternatives; Deakin University criminologist James Martin called this a 'massive policy failure' benefiting organized crime.
Using experimental wastewater testing, the ABS revealed nicotine consumption rose 40% since 2017, while the Australian Border Force seized more than 1,000 tonnes of illicit tobacco since late 2025.
Australian Association of Convenience Stores CEO Theo Foukkare warns that 'prohibition by price' pushes legitimate retailers toward the illicit market, though the federal government maintains its border enforcement strategy.
As illicit retailers increasingly move operations online to bypass physical shutdowns, Queensland Health faces persistent challenges. Researchers suggest disrupting supply chains rather than relying solely on price-based disincentives.