Sales of 'Made in EU' counterfeit cigarettes are rising sharply in Europe, driven by tighter border controls after Russia's invasion of Ukraine and high tobacco taxes in countries like France, Belgium and the UK. Organized crime groups are shifting from smuggling to local production, with Europol reporting a near 80% increase in illicit factories uncovered since 2018—from 47 to 83 last year. In Belgium, customs found 11 illegal factories this year compared to just one in 2016.

Counterfeit cigarettes now make up almost half of the illicit market, with consumption up 13% last year according to KPMG. The EU lost €16.7bn in tax revenue from illicit sales last year. In France, where legal cigarettes cost about €13 a pack, nearly one in five cigarettes consumed was counterfeit.

Experts say there is no evidence the fakes are more dangerous than legal brands, though smoking remains deadly. A recent raid in Fleurus, Belgium, revealed a hidden factory with conveyor belts, packing machines and tobacco-processing equipment, often sourced from Chinese websites like Alibaba, along with worker sleeping quarters.