OECD/EUIPO update fake goods trade figure to $467bn

The global trade in counterfeit goods was worth around $467bn in 2021, or around 2.3 per cent of total global imports, according to a new report from the OECD and EUIPO.

The document – entitled Mapping Global Trade in Fakes 2025: Global Trends and Enforcement Challenges – is the latest edition of a widely-cited report drawing on customs seizure data, which previously estimated that in 2021 it was worth $464 billion or approximately 2.5 per cent of world trade.

Among the changes seen in the intervening years are increased use by counterfeiters of international waterways such as the Danube River to move goods and the adoption of 'localisation' strategies – shipping unassembled parts or packaging to assemble fake products closer to end markets – to make their illicit activities harder to detect.

Some other strategies used by counterfeiters remain largely unchanged, such as rapid production of in-demand products, use of online channels to advertise and promote them, and taking advantage of less scrutinised shipping routes like small parcels that offer "speed, convenience, and lower risk of inspection."

In January, US Customs and Border Protection (CBP) said it is working on measures that would strengthen its oversight of low-value or 'de minimis' shipments, which are known to be a major route for counterfeit goods entering the country.

In a speech this week, CBP Acting Commissioner Pete Flores estimated that in fiscal 2024, de minimis shipments accounted for 97 per cent of intellectual property rights seizures, equating to 31m counterfeit items. He added that such shipments also accounted for 77 per cent of health and safety seizures, equivalent to more than 20m dangerous or illicit items,

According to the new report, China (and Hong Kong) continues to be the primary source of counterfeit goods, accounting for 45 per cent of all reported seizures in 2021, other countries from Asia, the Middle East and Latin America are also involved in the illicit trade.

Clothing, footwear, and leather goods remained among the most affected sectors, accounting jointly for 62% of seized counterfeit goods (see figure below).

At the same time, the OECD and EUIPO conclude that 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. Counterfeiting spans nearly 50 out of 96 product categories monitored.

"Illicit trade threatens public safety, undermines intellectual property rights and hampers economic growth, and the risks could increase as counterfeiters leverage new technologies and techniques to avoid detection," said OECD Secretary-General Mathias Cormann.

"The OECD's continued monitoring and mapping of the global trade in fakes shows the need for authorities to adopt new tools and step up their cooperation and information sharing."

Strengthening enforcement requires better co-ordination, information sharing, and collaboration with rights holders and trade intermediaries, according to the report.

Meanwhile, enhanced engagement with trade intermediaries, including postal and shipping services, is critical to curbing illicit trade and safeguarding global supply chains.