Mexico illicit trade and counterfeit goods expansion

Mexico is experiencing a significant rise in the illegal trade of regulated consumer goods, specifically within the pharmaceutical and tobacco sectors.

In the pharmaceutical market, the National Union of Pharmacy Entrepreneurs (UNEFARM) reports a 6% increase in illegal trade involving stolen, expired, or counterfeit products, with the market projected to reach 38.5 billion pesos by the end of 2026. Criminals are increasingly using artificial intelligence to create fake profiles, AI-generated videos, and impersonate medical specialists to deceive consumers. The Federal Commission for Protection against Sanitary Risks (Cofepris) has issued alerts for counterfeit versions of Saizen, Bedoyecta, and Buscapina Compositum, as well as the adulteration of the medical device Granulox.

Industry experts note that the illegal market is fueled by theft from public hospitals and the sale of diverted goods in street markets (tianguis), where medications for diabetes, hypertension, anxiety, and epilepsy are sold at prices up to 80 percent lower than the formal sector. This unregulated trade violates the General Health Law and poses severe risks to sterility and safety due to improper storage.

Simultaneously, the tobacco industry faces a crisis where one in four cigarettes sold in Mexico is smuggled or counterfeit, often originating from Paraguay, Vietnam, and China. Industry representatives note that these products lack regulatory oversight and pose public health risks. Additionally, the illicit tobacco market allows consumers to bypass economic measures designed to reduce smoking rates, as illegal products are priced significantly lower than legal alternatives.