Illicit alcohol sales now account for 18% of the total amount sold in the South Africa. This is according to research released by the Drinks Federation of South Africa (DFSA), this month.
The study conducted by Euromonitor International, revealed that illegal trade is valued at over R25 billion annually and results in a R16.5 billion loss in excise duty.
The contribution of the alcohol beverage industry to the South African economy, is estimated at R472,7 billion, making up 3,6% of the GDP.
The DFSA study points to a dramatic increase of 55% in volume reached in 7 years, from 498,290 Hectolitres in 2017 to 773, 424 in 2024.
Dr. Shamal Ramesar, Head of Research at DF-SA said it is now urgent for government, industry and civil society to work together to tackle this challenge, affecting communities who are consuming unregulated alcohol.
He also said as a result, the country is losing billions in revenue.
The problem spreads to other countries in Southern Africa, such as Zimbabwe.
There, Pernod Ricard, is raising awareness of the health hazards of counterfeit alcohol, such as toxic chemicals like methanol.
Brands such as Jameson have also introduced visual markers to help consumers identify genuine products.
The World Health Organization (WHO) estimates about 25% of all alcohol consumed in the world, is unregulated.