An independent study launched by FTI revealed that illicit alcohol makes up 71% of the total alcohol market in Papua New Guinea, posing serious health, social, and economic threats across the country.
Over 10.5 million liters of pure alcohol were consumed in PNG’s urban and peri-urban in 2024 – majority being unregulated, untaxed and often dangerous.
Papua New Guinea has lost significant income due to illegal alcohol consumption. The report stated that the country lost up to K2.59 billion in government revenue last year alone.
Key Findings:
- Illicit alcohol accounts for 71% of consumption.
- Cheap branded products are the largest category (37.9%), followed by homebrew (31.3%), and counterfeit products (1.4%).
- Spirits represent the largest share of government revenue lost (K1.48 billion).
- The illicit trade is reducing PNG’s GDP by 0.7% short term, and potentially 8% over the next 10 years.
Risks were also presented which included including toxic health effects, increased violence, and the funding of organized crime.
It also emphasizes the strain on genuine producers and the significant loss of employment opportunities.
To address the crisis, the study urges the PNG Government to:
- Reinforce existing alcohol laws and regulations.
- Increase enforcement and targeted inspections.
- Educate the public about the dangers of illicit alcohol.
- Work together with industry and law enforcement.
- Carefully assess how raising alcohol taxes (excise) could affect consumers
- Test ABV (Alcohol by Content) content of alcohol products
The report state that solving this issue will take strong government leadership, teamwork between agencies, and support from communities.