By Timothy S. Donahue
Top Takeaways:
Illegal vape share high: Industry and customs groups estimate about 40% of e-cigarettes sold in Germany are illegal.
Enforcement strain rising: German customs say investigations into illegal vape shipments are expensive.
Regulatory debate intensifies: Officials warn that proposed restrictions, including a ban on menthol e-liquids, could boost black-market activity.
Illegal trade in tobacco and nicotine products is increasing in Germany, according to a joint briefing by the German Association of the Tobacco Industry and Novel Products (BVTE) and the German Customs and Finance Union (BDZ), which warned that enforcement challenges are mounting across the market.
The two organizations shared recent enforcement findings and research on the illegal nicotine trade during a press conference in Berlin, stating that the black market now poses a major challenge to law enforcement, youth protection, consumer safety, and government tax revenue.
Officials stated that there is no comprehensive official statistic measuring illegal nicotine trade in Germany, as customs data mainly record seizures rather than the total volume of smuggled products. According to Thomas Liebel, federal chairman of BDZ, the visible seizures probably represent just a part of the larger illegal market.
“What we currently see is only part of what is actually happening,” Liebel said. “The illegal market is real and growing dynamically, while much of it remains in the dark.”
Industry-backed research cited at the briefing estimated that about 40% of vapes circulating in Germany are illegal, often because they avoid excise taxes, exceed allowed nicotine levels, or do not meet packaging and labeling standards under Germany’s Tobacco Products Act.
The studies referenced were conducted by Ipsos, Kanthak and the Institute for Tobacco Research Berlin. BVTE officials also warned that proposed policy changes could further expand illicit trade.
The German government is considering restrictions on menthol and cooling additives in vape liquids, but BVTE said menthol is used in about four out of five vape liquids as a flavor-balancing component.
Jan Mücke, chief executive of BVTE, said poorly enforced restrictions could unintentionally bolster the illegal market. “Political missteps could create a boom for organized crime,” Mücke said. “The state should focus on enforcing existing bans on e-cigarettes more effectively instead of repeatedly considering new bans that are then poorly enforced and only fuel illegal trade.”
Enforcement authorities say the logistics of policing illegal vape shipments have also become increasingly complex. Customs officials reported that investigations involving seized e-cigarettes often require long-term storage and specialized disposal due to lithium batteries, creating additional costs for taxpayers.
In one case investigated by Customs Investigation Munich, authorities spent US$870,000 storing and destroying confiscated vape devices. Officials also observed that an increasing portion of the illegal nicotine trade now occurs through online buying and parcel deliveries, complicating detection.
Germany is expected to handle over 5 billion parcel deliveries each year by 2030, but customs authorities say their inspection capacity can only examine a small portion of shipments. “With current inspection capacities, little can be achieved in this area,” Liebel said, warning that new nicotine products are entering the market faster than regulatory frameworks can be developed.
Nicotine pouches were also identified as an increasing enforcement challenge. Although demand for oral nicotine products in Germany is rising, BVTE and BDZ stated that the market is mostly supplied through illegal or gray-area channels because the products currently lack a clear regulatory framework.
According to BVTE estimates, this situation results in approximately €100 million (US$116 million) in lost tobacco tax and VAT revenue each year. “The key question is not whether this market exists,” Mücke said. “The question is whether the state regulates and controls it or leaves it entirely to the black market.”
Customs seizure data cited by the organizations highlights the scale of the problem, though officials emphasize that the numbers likely account for only a small part of the total activity. The Reemtsma Black Market Tracker reported at least 23,741 cans of oral tobacco or nicotine pouches seized in Germany in 2025.
Individual enforcement operations uncovered larger quantities, including more than 14,000 cans of snus in a warehouse linked to cigarette smuggling and 36 pallets of prohibited snus products in a warehouse in Hesse valued at more than €1 million ($1.16 million).
Authorities say the illicit market presents multiple public policy concerns because illegal supply chains operate without age verification, product standards or ingredient transparency. BDZ officials described the situation as a structural enforcement challenge, noting that outright bans do not eliminate demand but instead shift consumption into illegal channels.
Germany’s role as both a transit and destination market for nicotine products, along with varying regulatory rules across the European Union, has made enforcement efforts more difficult. BVTE and BDZ stated their goal isn’t to downplay health concerns related to nicotine products but to push for clear and enforceable regulations that allow authorities to monitor the market effectively.
