In 2021, counterfeit and pirated goods were estimated to account for USD 467 billion, or 2.3% of global imports. This level is comparable to the GDP of several OECD economies, highlighting the scale and persistence of the threat.
Counterfeit and pirated goods
Counterfeit and pirated goods pose a growing threat to innovation, consumer safety, and fair competition. These goods infringe intellectual property rights, undermine trust in brands, and distort trade. As global markets become more digital and interconnected, counterfeiters exploit new channels and logistics networks, making enforcement more difficult and urgent.
Key messages
From fashion and cosmetics to electronics and automotive parts, any product with brand value can be targeted. Common counterfeits include clothing, shoes, perfumes, spare parts, pesticides, and even food items or semiconductors.
Small and medium-sized enterprises (SMEs) often lack the resources to enforce their intellectual property rights. While larger companies support enforcement efforts, SMEs may be left behind, making them more vulnerable to counterfeiting across expanding sectors.
Context
The scope of counterfeiting is widening, with rising health and safety risks
Clothing, footwear, and leather goods remained among the most targeted sectors, accounting for 62% of seized counterfeit goods in 2020-2021. At the same time, counterfeiters are expanding into new sectors, reaching nearly every aspect of daily life. Hazardous fakes, including automotive parts, medicines, cosmetics, toys and food were increasingly prevalent, posing serious risks to consumer health and safety. Geopolitical tensions, technological disruption and a volatile supply chain landscape provide fertile ground for counterfeiters, and illicit trade continues to be a risk to economic growth, intellectual property rights and public safety.
Counterfeiters adapt quickly using localisation, small parcels, and fast channels to evade detection
Trade routes for counterfeit goods are shifting, as criminal networks adopt new tactics to stay ahead of enforcement. Counterfeiters increasingly rely on international waterways and “localisation” strategies—shipping unassembled components or packaging to produce fake goods closer to end markets, making detection more difficult. They also respond swiftly to consumer demand, producing fake versions of trending products, advertising online, and exploiting less scrutinised distribution channels. In 2020-21, around 65% of seizures involved small parcels and mail, highlighting a clear shift toward fast, low-risk shipping methods that challenge traditional enforcement tools.
