Research: European Companies Lose Billions to Counterfeit Products

European manufacturers of clothing, cosmetics, and toys lose approximately 16 billion euros in revenue annually due to counterfeits, and around 200,000 jobs have been lost, according to the EU Intellectual Property Office (EUIPO).

– Counterfeit goods incur real costs – for consumers, for brands, and for our economies. The latest research shows very real costs, reflected in declining sales and job losses in the EU – said EUIPO Executive Director João Negrão.

Among the losers, the German toy industry stands out, accounting for one-third of the lost revenue.

In the clothing sector, Cyprus is the biggest loser, while France leads in the cosmetics sector.

The clothing industry loses nearly 12 billion euros in revenue each year, or 5.2 percent of total sales.

European cosmetics and toy sectors as a whole also report significantly lower sales. Counterfeit cosmetics have reduced companies’ revenues by three billion euros, corresponding to a decline of 4.8 percent. The toy industry has lost one billion euros in revenue, which decreased by 8.7 percent.

Counterfeiting also affects the labor market. According to EUIPO research conducted from 2018 to 2021, counterfeits have caused the loss of 160,000 jobs in the clothing sector, 32,000 in the cosmetics sector, and 3,600 in the toy industry.

Counterfeit goods often pose serious health and safety issues for consumers, particularly concerning counterfeit cosmetics and toys.

In 2022, potentially dangerous counterfeit products accounted for 15 percent of seized goods at the EU’s external borders, according to EUIPO.

Consumers primarily purchase counterfeit products because the original is too expensive, as shown by EUIPO’s research conducted last June.

One-third of Europeans find this motivation acceptable, and among young people, the proportion rises to 50 percent, the office reported.