Through the Smoke: Regulation, (Il)legality, and the Complexity of Cigarette Markets

The cigarette market presents a unique case for examining the effects of regulation and of the interaction of legal and illegal products on a variably legal market. This chapter, primarily focused on Europe, examines the cigarette regulation and its complex balancing of health, tax, and law enforcement objectives. The chapter also delves into the typologies, size, and actors of the illicit cigarette market, providing a detailed analysis of its interaction with the legal market. The study highlights the significant regional variations and the complexities involved in the illegal cigarette trade, influenced by economic, geographic, and policy factors. By offering insights into the micro-dynamics of illicit markets, this study emphasizes the complexity of the illegal cigarette market and the need for nuanced policy interventions that consider the interconnectedness of legal and illegal segments.