“New DF-SA study reveals that nearly 1 in 5 alcoholic drinks sold in South Africa is illegal — posing serious risks to health and public finances.”
The Drinks Federation of South Africa (DF-SA) has released new research revealing a sharp increase in the illicit alcohol market, which has grown by 55% in volume since 2017.
The study, conducted by independent research firm Euromonitor International, highlights the escalating impact of illegal alcohol on public health, consumer safety, and national tax revenue.
“This study is a wake-up call,” said Dr. Shamal Ramesar, Head of Research at DF-SA.
“Communities are being exposed to harmful, unregulated alcohol, and the country is losing billions in revenue. It is urgent that government, industry, and civil society work together to tackle this issue head-on.”
Key Findings from the Study Illicit Market Expansion
- Volumes of illicit alcohol have increased by 55% since 2017 – rising from 498,000 in 2017, to 665,000 in 2020, to 773,000 hectolitres in 2024 (1 hectolitre = 100 litres).
- Illicit alcohol now accounts for 18% of all alcohol sold in the country — a figure that reflects both growth in illegal trade and the legal market’s recovery post-COVID.
- To provide an example, this volume would equate to every adult South African, over the legal drinking age, consuming the equivalent of 750ml of beer per week, per year.
- The market value of illicit alcohol reached R25.1 billion in 2024, up from R20.5 billion in 2020, and R12.8 billion in 2017.
Health Risks in Communities
A national consumer survey of 707 respondents underscores growing public concern:
- 80% worry about the health risks of drinking unregulated alcohol.
- 4G% say they personally know someone harmed by illicit alcohol.
- 2G% report knowing someone who has died from drinking it.
“These aren’t just numbers,” said Dr. Ramesar. “These are real people in our communities — family members, friends, neighbours — suffering from preventable harm.”
Massive Losses to Government Revenue - In 2024 alone, South Africa lost an estimated R16.5 billion in tax revenue due to illicit alcohol — up from R11.3 billion in 2020 and R6.4 billion in 2017.
- Counterfeit spirits are the biggest illicit alcoholic drinks category, and comprise two- thirds of the total fiscal loss.
- Counterfeit and fake products caused an estimated R6.3 billion in revenue loss in 2024.
How Illicit Alcohol Enters the Market
The study identifies some main sources:
- Counterfeit and fake brands — particularly white spirits like low-cost vodka and gin — are increasing.
- Smuggled alcohol, while declining, still makes up nearly a quarter of all illicit products.
Call to Action
DF-SA is calling for urgent, coordinated action from government, law enforcement, and industry stakeholders to:
- Promote responsible and legal alcohol consumption and trade
- Shut down illegal producers and supply chains
- Protect consumers from dangerous, unregulated products
- Raise public awareness about the risks of illicit alcohol
