A recent study by Euromonitor International, in collaboration with the Drinks Federation South Africa, has revealed a staggering rise in the country’s illicit alcohol market, now valued at R25 billion—accounting for 18% of the total alcohol industry. The findings highlight not only significant economic losses but also severe health risks for consumers.
Alarming Growth in Illicit Alcohol
Drinks Federation South Africa CEO Angela Russell shared updated data during a media briefing, showing a 55% increase in the volume of illicit alcohol since 2017, with its value surging by 95% in the same period. The fiscal loss to the South African government has skyrocketed by 157%, reaching an estimated R16.5 billion in lost tax revenue—a figure that could have helped offset recent budget shortfalls.
Health Risks and Consumer Awareness
Counterfeit alcohol, which now makes up 31% of the illicit market, often contains toxic substances, posing serious health threats. Disturbingly, a consumer survey conducted alongside the study found that:
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67% of respondents admitted to buying illicit alcohol due to lower prices.
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49% personally knew someone harmed by counterfeit alcohol.
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29% knew someone who had died from consuming illicit liquor.
Russell warned that counterfeiters are becoming increasingly sophisticated, making it harder for consumers to distinguish fake products from genuine ones. She advised buyers to check for:
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Properly sealed caps and high-quality labels.
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Consistent fill levels and clarity of the liquid.
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Correct spelling and back-label information.
Crackdown and Regulatory Measures
Authorities have conducted raids, including a recent operation in the Western Cape led by Provincial Police Commissioner Tommy Tombeni, targeting illegal manufacturing hubs. However, Russell emphasized the need for stricter ethanol controls and harsher penalties for offenders, as current fines (as low as R1,000–R5,000) are insufficient deterrents.
She welcomed the revival of the Customs Fraud and Illegal Imports Task Team under Nedlac, which will bring together government, industry, and community stakeholders to combat the issue.
A Call for Collective Action
With South Africa’s illicit alcohol market still below the African average (40%), Russell urged coordinated efforts to prevent further growth, citing countries like Mozambique (73% illicit market) and Uganda (69%) as cautionary examples.
As the industry explores technological solutions—such as barcode-scanning apps via the Consumer Goods Council of South Africa—the message remains clear: consumers must stay vigilant to avoid dangerous counterfeit products.
For now, the battle against fake alcohol continues, with lives and livelihoods hanging in the balance.
