South Africa’s fast-moving consumer goods (FMCG) sector faces a counterfeit crisis. From canned foods, sweets and powdered staples to personal care products, fake goods infiltrate shelves and supply chains, eroding margins and posing health risks to consumers.
According to eNCA, illicit trade – much of it counterfeit – costs the local economy over R100-billion annually. Some analysts estimate the broader counterfeit economy could account for up to 10% of economic activity. Recent law enforcement seizures valued at R4.8-million and R9.3-million point to organised operations targeting everyday consumables.
Unlike luxury goods, FMCG products offer high turnover and low detection. Powdered products such as stock powders, powdered drinks, milk powders, yeast and tea are particularly vulnerable, especially in sachet form where fragmented sales and informal distribution obscure traceability. The World Health Organisation (WHO) warns that up to 10% of medical and related consumer products in developing regions may be falsified or substandard.
‘In Africa, we’ve definitely seen a rise in brands approaching us for anti-counterfeiting solutions, particularly in the alcohol, oil and gas and certain FMCG categories,’ says Jackelyn Naidoo, managing director of All4Labels South Africa. ‘In markets where counterfeiting was previously less visible, it has now become more noticeable.’
Many brands remain reactive rather than proactive, Jackelyn notes. ‘Typically, something goes wrong first. A negative incident happens, and then they look for a solution.’
Cost perceptions remain a barrier. Security features are often associated with high-end RFID technology, which may not be feasible for high-volume, low-margin goods.
‘RFID has its place, especially for tracking and tracing purposes,’ says Ayhan Uslu, sales director MNC for INTEGRITAG at All4Labels. ‘But it makes no sense to protect a bottle of beer if the solution costs as much as the product itself.’
Ayhan, who has spent 15 years in brand protection and governmental document security, describes counterfeiting as a perpetual ‘cat-and-mouse game’.
‘Counterfeiting has always been there. What changes is awareness,’ he says. ‘In Europe, consumers are very conscious of authenticity. In Africa, that awareness is growing rapidly.’
Ayhan says the challenge is selecting the right level of protection. ‘Not every product requires the same level of security. The solution must fit the value of the goods.’
This is where All4Labels believes print-integrated authentication offers an advantage. Instead of adding separate hardware or offline processes, security elements can be incorporated directly into the label during printing.
‘We integrate security features inline during label production,’ Jackelyn explains. ‘There’s no additional offline step, which keeps it cost-effective.’
Drawing on global innovation hubs across 55 sites, the group develops technologies centrally and adapts them to local markets. ‘We bridge the gap between global innovation and what African brands can realistically implement,’ she adds.
One example is the group’s proprietary QR Fingerprint® technology. At first glance, it resembles a standard QR code. In reality, it contains AI-driven calculations and complex pattern structures that create a unique identity for each individual item.
‘It gives every product its own DNA,’ says Ayhan. ‘When scanned, it verifies authenticity. Because it’s print-based and produced inline, it avoids the typical cost burden of more complex systems while reducing the ability to copy the label.’
Unlike conventional QR codes, which can be duplicated, the fingerprint element is unique and linked to secure verification. For premium products, this reassures consumers. In FMCG, the benefit is often more strategic, Jackelyn explains. ‘In mass-market goods, it’s about protecting volume sales and brand reputation. Counterfeit goods reduce revenue and create liability risks. Reputational damage spreads quickly, especially on social media,’ she says.
Sustainability is also a requirement in this industry. ‘In Africa, sustainability is no longer optional,’ Jackelyn notes. ‘Our solutions, including QR Fingerprint, can move through the recycling stream without interfering with the process.’
Adaptability is another factor. Whether applied to pressure-sensitive labels, sleeves or wraparound BOPP formats, authentication features such as QR Fingerprint can be tailored to any substrate and application – important for high-volume FMCG lines.
Ultimately, both Jackelyn and Ayhan stress that value rather than complexity drives adoption. ‘It’s about choosing the right solution for the right product – scalable and practical,’ says Ayhan. ‘That’s how you stay ahead in this game.’
