Counterfeit products yearly cost EU 60 billion euro

Counterfeit products cost the European Union 60 billion euro in turnover, which is over 7 % of the total turnover of the sectors concerned. Moreover, the counterfeiting costs Europeans almost half a million jobs. 

434.000 jobs lost 

The European Union Intellectual Property Office EUIPO monitored the economic costs of counterfeit products that enter the European markets for five years, especially in thirteen sectors that are at high risk for counterfeiting (like fashion, spirits cosmetics and smartphones). The total cost across the EU is 59 billion in turnover, excluding many extra costs that companies suffer in the face of counterfeiting. This amounts to a whopping 116 euro per EU inhabitant.

Fashion accounts for 23 billion in lost turnover (which is 8.1 % of the sector’s total turnover), legal drugs lose 16 billion (or 6.6 %) and cosmetics 6 billion (8.9 % of the total turnover). Smartphones (4.2 billion) and wines and spirits (2.7 billion) complete the top-5 of suffering sectors. 434.701 jobs were lost due to the counterfeits, because European producers can make and sell fewer products. 

Italy and Germany suffer most

The worst hit member states in absolute figures are Italy (with a damage of 8.6 billion euro) and Germany (with 66.500 jobs lost). Relatively, Bulgaria suffers most (with 19.8 % of the sectors’ turnover being lost), as does Cyprus with a loss of 234 euro per inhabitant. With a damage of 4% of total turnover (barely 69 euro per inhabitant), Finland is clearly Europe’s least concerned member state.

Belgium loses around two billion euro in turnover each year, meaning a job loss of 8.200. With a cost of 183 euro per inhabitant, Belgium suffers relatively much in comparison to most other EU states. The Netherlands sees a job loss of 14.000 units, but the damage to turnover is (relatively) limited to 1.8 billion euro per year.