Economic impact of counterfeiting in the clothing, cosmetics, and toy sectors in the EU
On January 2024, the EUIPO - European Union Intellectual Property Office released a report titled "Economic Impact of Counterfeiting in the Clothing, Cosmetics, and Toy Sectors in the EU."
This extensive analysis examines the economic ramifications of counterfeiting on sales and employment across three pivotal sectors: apparel (including footwear), cosmetics, and toys. The study focuses on a meticulous evaluation of the decline in sales within the European Union market. Consequently, these diminished sales lead to a direct reduction in employment within the impacted industries.
Previous studies have shown that the drivers of counterfeiting vary by sector. Therefore, the clothing, cosmetics, and toy sectors key findings are identified separately.
Clothing industry:
- The clothing industry experienced an average annual sales loss of almost EUR 12 billion between 2018 and 2021, which accounted for 5.2% of total clothing sales in the EU.
- As a consequence of sales lost due to counterfeiting, the clothing industry experienced a yearly decrease in employment of 160,000 individuals.
Cosmetic industry:
- Counterfeiting in the cosmetics sector results in estimated losses of EUR 3 billion, equivalent to 4.8% of total sales in the EU.
- The EU cosmetics industry is estimated to have experienced a decline in employment of nearly 32,000 individuals.
Toy industry:
- The toy sector experiences the highest percentage of sales lost due to counterfeiting, at 8.7%, which translates to EUR 1 billion.
- Employment in the toy sector decreased by 3,600 individuals due to counterfeiting.
read more
We cordially invite everyone to read the full report which can be found at the following link:
Complete bulletin in PDF.