Well we dont really see illegal tobacco growing operations despite the significant tax burden. The significant price premium must be significantly above the cost of production.
The stigma against smoking tobacco is increasing more and more though, and there is an increasingly popular and cheaper nicotine alternative in vaping.
But only smuggled. We also dont see commercially viable Heroin production and poppy cultivation in the destination countries, despite the favorable climate. Growing and producing some drugs inland is just not a viable option, despite an significant price premium caused by smuggling.