Australia’s Daily Smoking Rate Falls to 5.6% as Illicit Tobacco Surges

Australia’s daily smoking rate has collapsed to 5.6% in 2025, down from 8.3% in 2022-23, according to the National Drug Strategy Household Survey released July 17. The result crushes the government’s 10% target and puts the nation on track for its 5% goal by 2030. But the survey of 17,500 Australians aged 14 and over also found 34% of smokers now buy illicit tobacco, up from 16.7% three years ago, forcing the government to tighten restrictions on nicotine pouches from July 24.

Smoking collapses to record low

Daily smoking among Australians aged 14 and over fell to 5.6% in 2025, down 2.7 percentage points from 8.3% in 2022-23. Among adults aged 18 and over, the rate dropped from 20.1% in 2001 to just 5.8% in 2025. More than two-thirds of Australians aged 14 and above have never smoked, a historic high. The result means 500,000 fewer daily smokers than three years ago, a decline nearly twice the government’s 2025 target.

Illicit tobacco use doubles among smokers

Of smokers surveyed, 34% said they had recently used illicit tobacco, up sharply from 16.7% in 2022-23. About 22% purchased branded illicit tobacco without plain packaging or health warnings in the previous three months, while one in six smoke unbranded products sold loose in plastic bags. More than half (57%) of those buying illegal tobacco reported purchasing it from a tobacconist. Illicit cigarettes sell for as little as A$5 per pack, undercutting legal products.

Vaping and nicotine pouches shift youth patterns

Daily vaping rates among Australians aged 18 to 24 stabilised at 8.3% in 2025, down from 9.8% in 2022-23. However, use of snus (nicotine pouches placed between the lip and gum) reached 3.6% among the same age group, while 8.4% used nicotine pouches in the past year. The survey found use of multiple nicotine products has doubled in the last year, raising concerns about average nicotine consumption among users. Overall nicotine use fell to 15.2% in 2025 from 17.4% in 2022-23.

Government bans nicotine pouches and tightens enforcement

From July 24, 2026, nicotine pouches will no longer be accessible through unapproved therapeutic goods pathways, including the Special Access Scheme and Personal Importation Scheme. Australians will not be able to import nicotine pouches even with a prescription. Health Minister Mark Butler said the move protects young people from a new wave of nicotine addiction. The government also spends more than A$300 million combating the illicit tobacco trade, with enforcement action ongoing against unlawful sellers.

Final Thoughts

Australia’s smoking rate has reached a record low, validating decades of tobacco control policy. Yet the surge in illicit tobacco and emerging nicotine products signals a shift in consumption patterns among remaining users, requiring sustained enforcement and regulatory action.

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