Counterfeit goods surge globally to USD 467 billion: OECD

China leads production; clothing, electronics most vulnerable worldwide

Counterfeit goods, mainly from China, are rising globally, especially in clothing, electronics and footwear, says a report by OECD, a grouping of rich countries. Consumers face safety risks and deception, while authorities struggle to control evolving trade routes and online sales.

The illegal trade in counterfeit goods still has a significant impact on the world economy, endangering brands, misleading customers and posing problems for authorities everywhere. The value of counterfeit and pirated goods reached an astounding USD 467 billion in 2021, making up 2.3 pc of all global imports, according to the most recent joint report by the Organisation for Economic Co-operation and Development (OECD) and the European Union Intellectual Property Office (EUIPO), Mapping Global Trade in Fakes 2025. Fake goods accounted for 4.7 pc of all imports into the European Union alone, demonstrating the enduring and growing nature of this illicit sector.

The report highlights that nearly half of all product categories tracked by global customs authorities are targeted by counterfeiters. But some industries are more severely impacted than others. As the most frequently seized counterfeit goods, clothing, shoes, leather goods and electronics continue to be the most vulnerable. These are not just high-end brands, counterfeiting of common consumer goods, such as smartphones and sportswear, is common, it says.

Counterfeiters have become more sophisticated. They are increasingly using ‘localisation’ tactics, bringing in separate packaging or disassembled parts to assemble fake goods nearer to the final consumer. This greatly complicates detection and enforcement, particularly in free trade zones with frequently lax oversight.

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The report also notes a worrying trend, notably the rise in counterfeit dangerous goods, such as automotive parts, pharmaceuticals and cosmetics. These counterfeits seriously jeopardise public health and safety in addition to undermining genuine brands. Fighting fakes is crucial because, for instance, phoney medications and auto parts can cause accidents or health emergencies.

The impact of the counterfeit trade is primarily felt by consumers. Many people are tricked into purchasing counterfeit goods, frequently via internet marketplaces where it is becoming harder to tell the difference between authentic and fake goods. Since e-commerce has grown so quickly, counterfeiters can now more easily contact customers directly, avoiding customs inspection by using small packages and postal services. Indeed, according to the report, shipments with fewer than ten items made up 79 pc of all seizures in 2020–21, compared to 61 pc only a few years prior.

Consumers suffer more than just monetary losses. Products that are counterfeit may be dangerous or of poor quality. While fake cosmetics can result in allergic reactions or worse, fake electronics can be a fire hazard. The spread of fake medications is particularly concerning since it jeopardises lives and erodes public confidence in healthcare systems.

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Moreover, the report emphasises that the trade in fakes deprives governments of tax revenue and undermines consumer confidence in legitimate markets. The economic ripple effects are profound, affecting jobs, innovation and funding of public services.

According to the OECD and EUIPO’s General Trade-Related Index of Counterfeiting (GTRIC), the People’s Republic of China continues to be the world’s leading source of counterfeit goods. The largest value of counterfeit goods seized worldwide is from China and Hong Kong. The report does point out that other nations are becoming more involved, though. For some product categories, especially apparel and footwear, Bangladesh, Lebanon, the Syrian Arab Republic and Türkiye have become important suppliers.

In order to transport goods and evade detection, counterfeiters are also skilled at taking advantage of international trade routes, such as free trade zones and international waterways. Although the European Union is a major destination, the issue is actually worldwide, as production centres and trade routes change in response to enforcement actions.