The rise of illicit alcohol in SA is not just an industry concern — it is a national crisis with deep implications for public health and economic growth. New research commissioned by the Drinks Federation of SA and conducted by Euromonitor International showed a surge in the illicit market that threatens to undermine both public health and the economy.
Since 2017 the volume of illicit alcohol has grown by a staggering 55%, reaching 773,000 hectolitres of pure alcohol in 2024. That’s equivalent to nearly one in every five alcoholic drinks sold. The illicit market now commands a value of about R25bn — up from R20.5bn in 2020. But the costs are not only counted in rand and cents: illicit alcohol evaded about R16.5bn in VAT and excise tax in 2024 alone — revenue that could have gone to healthcare, education and infrastructure.
More than an economic threat
Counterfeit alcohol is not just untaxed — it’s unregulated, untested and unsafe. These products often lack health warnings, ignore basic safety standards and are produced in facilities that fall far short of compliance and hygiene norms. In some cases they contain dangerous levels of ethanol or toxic additives such as methanol, posing serious risks to consumers.
A recent national survey of 707 South African adults shows the extent of concern: 83% worry about the health risks of illicit alcohol, 49% know someone who has been harmed by it and 29% know someone who has died from it. This is not a theoretical problem. These are real people, real families and real tragedies.
The value of the legal market
The legal alcohol industry operates within a regulated framework that prioritises product safety, quality assurance and compliance with national standards. Legal producers are subject to oversight and controls that ensure traceability, testing and the inclusion of appropriate health warnings and responsible consumption messaging.
This industry contributes to the formal economy through tax compliance, employment and support for businesses across the value chain. It generates revenue through VAT and excise duties, which helps fund public services, and provides economic opportunities through regulated production, distribution and retail channels.
Notably, the legal sector promotes responsible drinking through education campaigns, compliance training for traders and self-regulation in marketing practices. When consumers choose legal alcohol products they are not only protecting their health — they are supporting an ecosystem that values safety, responsibility and development.
What needs to be done
The Drinks Federation research confirms that enforcement alone is not enough. A sustainable response to the illicit alcohol market must include the following priorities:
- Promote responsible, legal trade through public awareness and support for formalised businesses.
- Disrupt illegal supply chains with stronger enforcement and inter-agency co-ordination; and
- Empower informed choices through education, public awareness campaigns, and community outreach.
This is not just about curbing the black market — it’s about building a more informed and resilient trading environment that protects consumers and supports compliance.
A shared responsibility
Illicit alcohol is not an isolated issue — it affects us all. It puts consumers at risk, undermines legitimate businesses, drains public resources and erodes trust in institutions. Addressing it requires more than policy — it demands co-ordinated, collective action.
Now is the moment for government, the SA Revenue Service, the SA Police Service, industry, civil society and communities to stand together with a shared purpose: to protect lives and uphold the rule of law. No single sector can solve this alone, but together we can drive meaningful change.
The Drinks Federation is ready to work with partners across society to turn this research into action. By aligning efforts, closing enforcement gaps and raising public awareness, we can strengthen legal trade and help ensure South Africans can access safe, regulated products they can trust.
• Dr Ramesar is head of research at the Drinks Federation of SA.
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