Canada’s Illegal Nicotine Market Surges to 38%, TVPA Review Finds
Rothmans, Benson & Hedges Inc. (RBH) has warned that Health Canada’s latest legislative review of the Tobacco and Vaping Products Act (TVPA) overlooks a massive, growing illicit nicotine market. Released last week, the review exposes critical regulatory gaps and outdated enforcement mechanisms that threaten public health.
The critique follows a December 2025 evaluation highlighting that Health Canada’s dated IT systems hinder its ability to track compliance, manage enforcement, and analyze emerging trends in the digital era. While the TVPA review acknowledges a rise in online vaping sales, it fails to address the rapid growth of online contraband sales orchestrated by organized crime.
This regulatory oversight leaves a massive portion of the market completely unchecked. Unregulated products bypass quality controls, age-verification standards, and the tobacco cost-recovery charges that fund public cessation programs.
| Market Metric | Canada | European Union (38 Countries) |
|---|---|---|
| Illicit Market Share | 38% of total market | ~10% average |
| Uncollected Tax Revenue | Up to \$2.1 billion lost | Varies by jurisdiction (generally lower share) |
| Last Coordinated Public Report | 2011 (RCMP) | Ongoing / 2025 KPMG Report |
RBH executives argue that focusing solely on the legal, regulated industry misses the mark on public safety. They are calling for immediate federal leadership to utilize existing legal and regulatory powers to dismantle the contraband network.
“Without enforcement, regulations and laws fail to protect Canadians, leaving a country where criminals and illegal actors face too little risk and have too much opportunity,” said Kory McDonald, Head of Corporate Affairs at RBH.
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