Inside the dangerous world of South Africa's illicit alcohol trade
Beyond the lure of cheaper prices, the spread of counterfeit, smuggled, and unregulated alcohol is fuelling organised crime, draining state revenue, and putting consumers’ health at serious risk.
What counts as illicit alcohol?
Illicit alcohol takes many forms:
- Counterfeit products – fake versions of well-known brands.
- Smuggled imports – bypassing South African excise duties.
- Unregulated local production – often sold outside legal frameworks.
- Homebrews – legal for cultural use but illicit when sold for profit.
While it often hides in plain sight – even on licensed premises – what unites these products is their lack of oversight and compliance, leaving consumers exposed to toxic risks.
The economic toll
The scale of the problem is alarming. According to a 2025 Euromonitor study:
- Illicit alcohol now makes up 18% of South Africa’s market by volume.
- Volumes have surged 55% since 2017.
- The South African Revenue Service lost R16.5bn in excise duties in 2024 alone – funds that should be building hospitals, schools, and essential services.
Breakdown of fiscal losses:
- 38% counterfeit: R6.27bn lost.
- 29% smuggled: R4.8bn lost.
- 32% unregulated local production: R5.3bn lost.
Instead of strengthening the state, this revenue gap fuels criminal networks and undermines legitimate businesses.
The human cost
The numbers tell only part of the story. Illicit alcohol often contains dangerous substances like methanol, which can cause blindness, organ failure, or death.
Consumer research highlights the grim reality:
- 83% worry about the health risks of illicit alcohol.
- 67% believe buyers choose it for the lower price, regardless of origin.
- 49% know someone personally harmed by illicit alcohol.
- Of these, 29% know someone who has died from consuming it.
Illicit alcohol is not a victimless crime – it devastates families and communities.
Why is it growing?
Three main drivers explain the rapid spread:
- Affordability – illicit alcohol is on average 37% cheaper than legal options.
- Accessibility – sophisticated operations now penetrate both formal and informal markets.
- Policy and enforcement gaps – weak border control, under-resourced enforcement, and fragmented messaging leave room for illegal trade to flourish.
A call for collective action
Industry bodies including the Beer Association of South Africa (BASA), Drinks Federation of South Africa (DFSA), and the South African Liquor Brand Owners Association (SALBA), stress that alignment is essential.
Key interventions needed:
- Stronger enforcement to dismantle criminal networks.
- Unified public messaging to increase awareness of risks.
- Smarter regulation that accounts for illicit alternatives and avoids pushing consumers further into the black market.
The bottom line
Illicit alcohol is robbing South Africa of lives, jobs, and billions in revenue. Left unchecked, it will continue to undermine both the economy and public health. Tackling it requires cooperation across government, industry, and civil society.
As South Africans raise their glasses this summer, the choice is clear: support solutions that safeguard health, protect communities, and secure the nation’s future.