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Cigarette Black Market up to 8.3%

2023/10/21
in Macroeconomics


Novel Research, a Romanian institute specialising in market processes, released a report on Black Market cigarette consumption on Wednesday showing that Romania’s black cigarette market accounted for 8.3% of total consumption in September 2023, higher than the 2022 average of 7.1%.
The black market of cigarettes had a fluctuating evolution in the first five months of the year: 16.9% in May, increasing compared to 14.6% in March and slightly decreasing compared to January 2016 (17.8%). The Northeast region continues to be the most affected by the illegal cigarette trade, with a share of the black market that breaks the record of the last seven years, exceeding 50%.
The south-west and west regions also have important shares (26% and 25%, respectively). From the point of view of origin, the share of „cheap whites” are increasing (plus 3.8 p.p. compared to March) and continues to hold the highest share (57.4%) of the total black market. Products from Moldova are decreasing (minus 4.5 p.p. compared to March, up to 14.7%), and Ukraine and Serbia remain at a relatively constant level (20.4% and 3.4%, respectively).
Novel Research managing partner Marian Marcu concluded, in a press conference, that “in September 2023, the black market remains steady in almost all the regions of the country.”
Bulgaria is the third largest source of smuggled tobacco products, said with 16.8% share. The survey also revealed a downward trend in the share of products from Moldova (7.6%), while Serbia remains constant. Romanian authorities have captured 105 million contraband cigarettes, more than double the amount in the same period last year.
In 2022, tobacco companies contributed about 20 billion RON to the state budget.

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