The volume of counterfeiting turnover is one-quarter higher than the world’s drug trafficking turnover and amounts to about US $500 billion per year. According to a study by experts from Frontier Economics Ltd. commissioned by the Business Action to Stop Counterfeiting and Piracy (BASCAP), counterfeiting is projected to be about US $991 billion in 2022. According to the OECD report, the volume of counterfeited products in global GDP was 3.3% (as of 2016).
The damage from faked goods is estimated in lost profits, loss of jobs and uncollected taxes to the budget. A country loses a part of investments and tax revenues, as large businesses have to compete with shady sellers. In addition, faked goods are not subject to regulatory standards and production regulations.
Contrary to popular belief, illegal producers tend to counterfeit more than just shoes and clothing. Violators produce such common goods as cosmetics, household chemicals, auto parts, lubricants, alcohol and tobacco products, pharmaceuticals and veterinary medicines, food, electronics, baby products and toys, jewelry, adult products, non-alcoholic beverages, juices and mineral water and other popular products.