Sectors

The 12 sectors most vulnerable to illicit trade

Illegal trade is a major problem for a growing number of industries. It operates across sectoral lines, taking advantage of regulatory inconsistencies, fragmented oversight, and uneven enforcement. These systemic vulnerabilities allow criminal networks to shift methods and products with ease, undermining legitimate commerce and public governance. Addressing such a cross-cutting threat requires an equally cross-sector response.

TRACIT has identified the following 12 sectors as particularly at risk:

TRACIT brings together industries that are affected in different ways but exposed to the same structural weaknesses, enabling a coordinated private-sector voice and more coherent engagement with governments and international organizations. This approach strengthens policy alignment, facilitates information-sharing, and ensures that reforms in one sector reinforce integrity and enforcement across the broader economy.

Focus sectors

Pharmaceuticals

Illicit trade in pharmaceuticals—whether counterfeit or substandard—is a multi-billion-dollar criminal market that undermines public health, burdens government budgets, and damages legitimate industry.

Addressing these challenges requires stronger regulatory frameworks, robust supply-chain controls, and coordinated action between industry and government to protect consumers and safeguard the integrity of global pharmaceutical markets.

Explore TRACIT's engagements related to the pharmaceutical sector here.

Alcohol

Illicit alcohol is a pervasive global problem, accounting for more than a quarter of all consumption and depriving governments of billions in tax revenue each year. Beyond the fiscal damage, illicit alcohol exposes consumers to serious health risks and undermines legitimate producers through lost market share, IP theft, and reputational harm.

The problem spans a wide spectrum—from smuggled and counterfeit products to illicit artisanal production, tax leakage, and surrogate alcohol—requiring coordinated regulatory, enforcement, and industry action to safeguard public health and protect the integrity of the alcohol market.

Explore TRACIT's engagements related to the pharmaceutical sector here.

Counterfeiting & Piracy

Counterfeiting and piracy represent one of the largest and fastest-growing forms of illicit trade, with global volumes more than doubling over the past decade and infringing goods now accounting for up to 5% of EU imports. This surge diverts revenue from governments and legitimate businesses, fuels the underground economy, and exposes consumers to unsafe products.

Because counterfeiting spans multiple sectors, it distorts competition and imposes high costs on brands, including lost market share, regulatory burdens, heightened liability, and reputational risk. A coordinated policy and enforcement response is essential to address the scale and complexity of this threat.

Explore TRACIT's engagements related to the pharmaceutical sector here.

Sector-related news

TRACIT’s Jeff Hardy spoke to Personal Care Insights about the growing threat of counterfeit cosmetics. He warned that counterfeiters are no longer focused on luxury items, but are now targeting everyday products like sunscreen and toothpaste. Read the article here

Combining chemical and genetic wood analysis, scientists can detect illegal timber accurately, helping dismantle a racket that INTERPOL and the FBI rank as the third most profitable cross‑border organised crime.

Featured publication

Illicit Alcohol Trade in Laos: Challenges and Solutions (January 2025)

The report addresses the tragic loss of life in Laos due to the consumption of toxic, illicit alcoholic beverages. The report features policy recommendations and a multi-pronged strategy for Laos and the region to stop illicit alcohol trade.

Tackling the sale of illicit pesticides on e-commerce platforms (April 2024)

The report documents the scale of illicit pesticide sales online and the structural vulnerabilities that enable criminals to exploit major platforms. It also highlights concrete examples of illicit listings identified across leading e-commerce sites worldwide.

Featured events

Geneva - February 2024: TRACIT highlights negative impacts of counterfeiting on human rights, sustainable development and inward investment at WIPO