Stamping Down on Illicit Alcohol

The consumption of alcoholic beverages is deeply embedded in many societies worldwide. According to Statista, global consumption in 2019 generated $1.53 trillion in legally registered sales (recorded alcohol), equating to total volume sales of more than 296 billion litres.

Fig 1 – Worldwide alcohol market revenue size ($ billion) from 2010-2023, including post-COVID forecast from 2020-2023 (Source: Statista Consumer Market Outlook 2020).

Excise taxes applied to alcohol have been used by governments to raise revenue for generations and are now enforced in approximately 160 countries, with the rates applied to such taxes often used to influence alcohol consumption. However, raising the level of excise tax to increase revenue and moderate consumption can sometimes lead to the unintended consequence of increasing illicit (or unrecorded) alcohol consumption, as consumers migrate to cheaper sources of supply.

According to estimates by the WHO, the consumption of illicit beverages still accounts for a significant share of total alcohol volumes consumed in many countries. Globally, it is estimated that one quarter of all alcohol consumed is illicit, with some regions estimated to consume 50% or more of unreported alcohol. This is despite the efforts of governments, policy makers, law enforcement officials, and bona fide alcohol manufacturers to curtail such consumption.