The latest national wastewater data has confirmed a troubling reality - nicotine consumption in Australia is rising, even as the legal market continues to collapse.
The latest National Drug and Alcohol Wastewater survey shows national nicotine consumption increased by 4 per cent between August 2024 and August 2025, with levels now reaching historic highs across both capital cities and regional Australia. Regional areas continue to record higher consumption than capital cities, with the Northern Territory now having the highest per capita nicotine consumption in the country.
Australian Association of Convenience Stores (AACS) CEO Theo Foukkare said the findings reinforce what retailers and communities have been warning for some time.
“This data confirms what we’re seeing on the ground - more Australians are consuming nicotine, but they’re increasingly buying it from the black market instead of regulated retailers,” Mr Foukkare said.
“The report also found that nicotine consumption has been trending upwards for several years, reaching record levels in capital cities in October 2025.
“When consumption is rising at the same time legal sales are falling. This increase isn’t coming from people suddenly switching to nicotine patches - that’s laughable. Last year, it was reported that NSW had around 60 tobacconists for every McDonald's – those businesses aren’t selling nicotine patches.
According to the report some sites in Darwin and Hobart recorded above-average consumption, while a regional site in New South Wales had the highest regional consumption overall.
Mr Foukkare said the findings should serve as a wake-up call for the Northern Territory Government, which is now at the centre of Australia’s nicotine crisis.
“The Northern Territory has the highest nicotine consumption per capita in the country, yet it still lacks the strong penalties and enforcement powers we’re seeing in other states,” Mr Foukkare said.
“The NT Government needs to pull its finger out and urgently introduce tougher penalties for tobacco offences, proper licensing of retailers and real enforcement capability. Without it, organised crime will continue to exploit the system.”
Mr Foukkare also called on the Federal Government to guarantee transparency and urgently release the next major national tobacco product report, due by 30 July 2026.
“We cannot keep flying blind while this crisis escalates. The Federal Government must guarantee that the next report is released on time - or better yet, release it early so Australians can see what’s really going on,” Mr Foukkare said.
“This latest wastewater report highlights the urgent need for a reset of Australia’s tobacco and nicotine policy settings.
“You cannot tax your way out of this problem. Excessive excise has created a massive price gap that is fuelling a multi-billion-dollar black market.
“We need a balanced approach - reduce tobacco excise to narrow the gap with illegal products, properly regulate alternative nicotine products through licensed retailers and significantly increase enforcement.”
Media contact: Theo Foukkare – 0423 003 133
