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Aussie Nicotine Use Soars, Illicit Tobacco Dominates
3 Jun
Summary
- Nicotine consumption in Australia rose 40% between 2017 and 2025.
- Illicit tobacco now accounts for 80% of all cigarettes smoked.
- Household spending on cigarettes has dropped to 2016 levels.
Nicotine consumption in Australia experienced a significant 40% increase between 2017 and 2025, far outpacing population growth. This surge is primarily attributed to the booming illicit tobacco market, which has grown from 12% to 80% of total consumption over the period.
Consequently, Australians are spending less on tobacco, with household expenditures now comparable to 2016 levels, despite the price of legal cigarettes tripling. The Australian Bureau of Statistics developed experimental methods, including wastewater analysis, to estimate these figures.
This trend has created a $6.9 billion hole in the federal budget, as tax revenue from high-priced legal tobacco has declined. States like New South Wales and Victoria are implementing stricter penalties for those involved in selling illegal tobacco.
Calls for reform of tobacco excise policies are growing, with some arguing it is no longer effective for tax or health objectives. The disparity in costs between legal and illegal products is a major driver of this public health challenge.
