Every black market begins with a need. A gap. They are created when there is something people want that they cannot obtain through legitimate means. Their very existence in your world tells your reader something about the laws in that place, about scarcity, power, and the desires of ordinary people.
Your black market doesn’t need to be clandestine deals with hooded figures in dark alleys or taverns with a nasty reputation. It could be a bright cafe with a back room for trusted customers. It may be a group of mothers who share resources between them. It might be an innocent child sitting at a crossroads. And the trade may be medicine, magical ingredients, books, forged documents, passage across a closed border, food during rationing, luxury fabrics, or simply a service that’s legal elsewhere.
Start with what is being illegally traded. What do people want that might be difficult to obtain via official channels?
The items might not be illegal. They could be rationed, heavily taxed, culturally forbidden, reserved for certain groups, or simply too expensive. So don’t just think about black magic or stolen jewels.
Maybe it’s healing spells reserved for nobility, grain during a famine, banned books, or salt which is usually heavily taxed. It doesn’t need to be a luxury product, in fact, it’s probably going to be more interesting if it’s something people need for the everyday.

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