Illicit tobacco buyers trying to save money, rebel against government policy - study finds

Buyers of black market tobacco say they're trying to save money amid the cost of living crisis, while fighting an unfair system.

A new study from the University of Otago spoke to 20 smokers who buy from the illicit tobacco market.

Some saw it as an alternative to the more expensive legitimate products, while others use it as an act of rebellion against the government.

RNZ has been looking into the issue since the start of the year, identifying a number of stores selling cigarettes at a fraction of the average retail cost.

The cheap cigarettes have none of the health warnings or quitline information, something authorities have said is an indicator of black market tobacco.

For smokers like Naomi*, a cheap packet of cigarettes made a difference in the ongoing cost-of-living crisis.

"I find it quite hard," she said.

"I'm on benefit and I have lots of children, so I really don't find it that easy to spend that sort of chunk of money. But when there's a cheap packet going, that's a bit different."

Others like Billy* saw it as a way to fight back against an unfair system.

"[Tobacco prices are] a way to keep poor people poorer because the majority of people [that] are smoking are poor people, Māori, you know… I mean poor people do not have that much pleasure in life, you know, and cigarettes are one of them."

Users like Hana* acknowledged she had purchased stolen tobacco, but defined the 'real' harm as violent theft.

"I suppose, that's where that moral conflict for me is; like, I know it's illegal, even the stuff that's imported from overseas, but if I knew that someone was actually going out and pinching it or causing someone else harm to get it, I wouldn't buy it," she said.

"And I suppose the less I know, the better."

The participants spoke to researchers Dr Lori Leigh and Professor Janet Hoek from the University of Otago.

Leigh told RNZ many of the participants in the study saw buying and using illicit tobacco as an act of rebellion against what they saw as a hypocritical government.

"This helped them construct legitimacy around smoking illicit tobacco," she said.

"They've adopted what we've called a 'convenient unknowing', in other words, they didn't want to know where the tobacco came from or the potential legality or crime networks that might be associated with it."

The scale of the market in New Zealand was still unknown, Leigh said, but she worried there was a risk it could be headed in the same direction as Australia, where the illicit tobacco trade has sparked fire-bombings and violent organised crime.

"I think it tells us that people using illicit tobacco frame purchases as reasonable, rational, economically and morally legitimate," she said.

"There's a resentment of certain policies, and it allows people to assert their agency against a system that they find unfair and unsympathetic."

Leigh said government addressing the illicit tobacco issue should take a coordinated approach.

A Customs spokesperson for the government's Illicit Tobacco Action Group said those choosing to deal in black market tobacco should understand it was not a victimless crime.

"It funds organised crime and other serious offending, including violence and fraud," they said.

"It undermines legitimate businesses and defrauds New Zealand taxpayers of government revenue that helps fund public services, including health services."

Health NZ spokesperson Matt Hannant said it worked closely with Customs and police to help keep illegal and unregulated tobacco products out of the community and away from young people.

"In 2026, we launched a targeted public awareness campaign encouraging people to report the sale of illegally imported tobacco, or tobacco or vaping products to people under 18.

"Health NZ responds to complaints, and provides resources and information for retailers and communities. We also carry out compliance activity under the Smokefree Environments and Regulated Products Act."

*Participants in the study used pseudonyms to protect their anonymity.