OTTAWA, ON (March 12, 2026):
The illicit tobacco economy is flourishing in Canada, expanding beyond traditional contraband cigarettes to an unregulated market of nicotine products that undermine public health and government finances. Canada’s line of defence? An inconsistent patchwork of uneven regulations and enforcement that create gaps for criminals to exploit.
In Beyond Tobacco: The New Frontier of Illicit Nicotine Products in Canada, Senior Fellow Christian Leuprecht examines the evolution of Canada’s illicit nicotine economy, why current policies and enforcement fall short, the escalating risks of leaving it unchecked, and concrete proposals to rein in this growing threat.
“Canada is confronting a rapidly expanding illicit nicotine market that has evolved well beyond traditional contraband tobacco,” Leuprecht says. “Criminal networks that once focused on cigarettes now traffic in high-nicotine disposable vapes, unauthorized nicotine pouches, and a sprawling ecosystem of online black market platforms.”
Leuprecht notes that evidence from enforcement agencies across seven provinces points to widespread non-compliance with federal and provincial rules governing nicotine products, raising concerns about the effectiveness of Canada’s current regulatory and enforcement approach. The illicit nicotine trade also costs Canada more than a $1 billion dollars in unpaid tobacco taxes each year.
Leuprecht says the government must act now to close the gaps that allow the trade to flourish. He recommends:
- Prioritizing a crackdown on illicit online sales.
- Developing a federal strategy and task force to coordinate enforcement.
- Targeting nicotine pouch sales.
- Strengthening laws and closing loopholes for vaping.
- Reducing demand by enhancing public awareness.
“The illicit nicotine trade is expanding … Organized crime groups are already capitalizing on the market, and revenues from sales are not confined to nicotine; they help finance broader criminal enterprises, including weapons and human trafficking,” warns Leuprecht.
“Prolonged inaction risks institutionalizing regulatory failure.”
To learn more, read the full paper here:
Christian Leuprecht is a senior fellow at the Macdonald-Laurier Institute and an award-winning professor at the Royal Military College and Queen’s University.
For further information, media are invited to contact:
Skander Belouizdad
Communications Officer
(613) 482-8327 x111
Skander.belouizdad@macdonaldlaurier.ca
