Industry Warns Of Growing Illicit Alcohol Trade Amid Rising Costs And Easter Demand Surge

Characterised by increased travel, social gatherings and higher alcohol consumption, Easter represents a peak trading window, but also a period where illicit trade tends to rise, driven in part by growing financial pressure on consumers.

Price pressure driving illicit trade

With households facing rising costs, including fuel and living expenses, affordability is increasingly shaping purchasing decisions. According to research by Euromonitor International, price remains a key driver behind illicit alcohol purchases, with such products often sold at significantly lower prices than legitimate alternatives.

In South Africa, illicit alcohol is estimated to account for around 18% of total consumption, highlighting the scale of the challenge facing both regulators and the formal retail sector.

“Illicit and counterfeit alcohol is often chosen because it is cheaper—on average about 37% less,” says Angela Russell, CEO of DF-SA. “But that price difference comes at a cost to both consumer safety and lawful trade.”

Understanding the risk: Illicit vs. Counterfeit

Illicit alcohol broadly refers to products that fall outside the legal and regulatory framework. This includes smuggled goods, untaxed imports and diverted stock. While some of these products may be genuine, they bypass tax systems and compliance checks, undermining legitimate businesses.

More concerning is counterfeit alcohol, a subset of illicit trade involving imitation products with fraudulent packaging and labelling. These pose direct health risks, as contents may be tampered with, diluted or unsafe.

The distinction is critical: while all counterfeit alcohol is illicit, not all illicit alcohol is counterfeit—but it is counterfeit products that present the greatest danger to consumers.

Survey data indicates that nearly half of respondents (49%) know someone harmed by counterfeit alcohol, underscoring the real-world impact of the issue.

What traders should watch this Easter

As frontline participants in the value chain, traders play a critical role in maintaining standards and protecting consumers. DF-SA is urging retailers to remain vigilant, particularly during high-demand periods like Easter.

Key areas of focus include:

• Sourcing integrity: Only procure stock from verified, tax-compliant suppliers
• Product checks: Inspect packaging, seals and labelling for inconsistencies
• Pricing awareness: Be cautious of deals that appear significantly below market value
• Licence compliance: Ensure all trading activities align with regulatory requirements
• Age verification: Strictly enforce ID checks to prevent underage sales

A shared responsibility across the value chain

Beyond compliance, the industry body emphasises the importance of consistent, responsible trading practices to protect both consumers and the broader economy.

Illicit trade not only erodes tax revenues but is also linked to wider criminal networks, placing additional pressure on already constrained regulatory systems.

“Every transaction matters,” Russell adds. “From purchase to pour, responsible choices support lawful trade, protect consumers and uphold industry standards.”

The bigger picture

As economic pressures persist, the tension between affordability and compliance is likely to intensify. For retailers, the challenge lies in balancing value with vigilance—ensuring that short-term cost savings do not lead to long-term risk.

This Easter, the message from industry is clear: responsibility is not optional. In a market where illicit trade is both accessible and appealing, proactive oversight at retail level will be key to maintaining trust, safety and sustainability across the sector.