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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.

A cross-cutting threat calls for a coordinated, cross-sector response. This approach strengthens policy alignment, facilitates information-sharing, and ensures that reforms in one sector reinforce integrity and enforcement across the broader economy. TRACIT has identified the following 12 sectors as particularly at risk:

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.

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.

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

Counterfeiting & Piracy

Counterfeiting and piracy are among the largest and fastest-growing forms of illicit trade, with global volumes more than doubling over the past decade. This surge diverts revenue from governments and legitimate businesses, fuels the underground economy, and exposes consumers to unsafe products.

Explore TRACIT's engagements related to counterfeiting here.

Pesticides

Illicit pesticides threaten agriculture, public health, and the environment. These products often contain banned chemicals, harming farmers, consumers, and ecosystems. Illicit pesticides also undermine legitimate businesses, reduce tax revenues, and weaken economic growth, particularly in markets with weak enforcement.

Explore TRACIT's engagements related to pesticides here.

Tobacco

Illicit tobacco trade is among the most widespread and well-documented forms of illicit trade. High profit margins, low detection rates and limited penalties make the sector particularly attractive to criminal networks. By increasing access to cheaper products, illicit tobacco undermines public health and tax revenue while fueling organized crime.

Explore TRACIT's engagements related to tobacco here.

Other sectors

Agri-foods

Forestry

Precious metals & gemstones

Wildlife

Fisheries

Petroleum

Trafficking in persons

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

Featured publication

Illicit Alcohol Trade in Laos: Challenges and Solutions

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

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