Spain dismantles six illegal cigarette factories as counterfeiting drives Europe's illicit tobacco market
Spain's Guardia Civil dismantled six illegal tobacco factories, seizing more than 20 million cigarettes and 38.4 tonnes of cut tobacco and leaf. The bust reflects a European shift from smuggling to domestic counterfeiting, with KPMG estimating illicit consumption at 55.3 billion cigarettes in 2025.
Guardia Civil dismantles six clandestine factories
Spain's Guardia Civil has dismantled six illegal tobacco factories and broken up a criminal network with international connections, in an operation that seized more than 20 million cigarettes and 38.4 tonnes of cut tobacco and leaf, according to noticiastrabajo.huffingtonpost.es citing Spain's Ministry of the Interior.
The Ministry said the plants were fully equipped operations, with their own production, packaging, storage and distribution systems. The counterfeit cigarettes even reproduced the security features found on legal products, a level of sophistication that marks a departure from traditional smuggling.
From smuggling to counterfeiting
The bust illustrates a wider shift across Europe. According to the latest KPMG report cited in the coverage, illicit cigarette consumption in Europe reached 55.3 billion units in 2025, up from 52.2 billion the previous year. The study stresses that the growth no longer comes mainly from smuggling, but from an increase in counterfeit production carried out inside European territory using increasingly advanced facilities.
In Spain, the illicit market accounts for 3.6% of total consumption, but counterfeiting is gaining weight quickly. The number of counterfeit cigarettes rose from 580 million to 870 million in a single year, an increase of close to 50%. The report cautions that the figures are not directly comparable because of changes in the information used to identify the origin and counterfeiting of packs. Even so, in 2025 counterfeits accounted for roughly six of every ten illegal cigarettes consumed in the country.
Fiscal and health stakes
Beyond tax fraud, the European Anti-Fraud Office (OLAF) has warned of the health damage linked to counterfeit cigarettes and of the profits the trade generates for organised crime. Its director-general, Petr Klement, said that "while smoking is dangerous, smoking counterfeit cigarettes is even worse," adding that each illicit cigarette "is theft from taxpayers and benefits organised crime."
The surge in counterfeiting comes as European institutions study new restrictions and tax increases on some nicotine-related products. Specialists in indirect taxation and illicit trade argue that any reform should include an assessment of its potential impact on the black market. When the gap between the legal and illegal markets widens, criminal organisations gain stronger incentives to expand clandestine production and distribution.
- More than 20 million cigarettes and 38.4 tonnes of tobacco seized
- Europe's illicit consumption at 55.3 billion units in 2025, up from 52.2 billion
- Spain's counterfeit cigarettes up from 580 million to 870 million in a year
The closure of the six factories is not an isolated event. It confirms what experts and studies describe as an increasingly industrialised and professionalised illicit tobacco trade, one that affects public health, tax revenue and the fight against organised crime alike.
