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Counterfeit cosmetics, unregistered skincare products and grey-market medicines are increasingly making their way into South Africa, raising concerns about consumer safety and exposing weaknesses in the country’s import controls.
A recently released report by the Consumer Goods Council of South Africa and Econometrix estimates that illicit trade in the cosmetics, personal care and pharmaceutical sectors amounts to more than R6.6bn annually, highlighting the scale of a problem increasingly driven by unauthorised imports, counterfeit goods and weaknesses in distribution channels.
Such cosmetics and grey-market medicines account for a sizeable share of the local health and beauty markets, costing the economy hundreds of millions of rand in lost tax revenue while exposing consumers to potentially dangerous products.
The report estimates the illicit cosmetics and personal care market at about R2.3bn a year, representing 4.5% penetration of a domestic market worth about R50.7bn. The pharmaceutical sector is even more heavily affected, with illicit trade estimated at R4.3bn annually, equivalent to 4.6% of the market.
