Anti-Counterfeit Packaging Market

Market Overview

The global anti-counterfeit packaging market size was valued at USD 118 billion in 2021 and is estimated to reach an expected value of USD 342 billion by 2030 at a CAGR of 12.5% during the forecast period (2022-2030).

Anti-counterfeit packaging is securely packaging a product to prevent fraudulent imitations. These types of packaging, also known as "brand protection," help a company protect its brand, especially when it is a market leader. Many companies offer anti-counterfeit packaging services. Therefore, one has a lot of options to choose within. Any company can use these services to protect its business from counterfeiters—name brands. There is a massive market for anti-counterfeit packaging, which is an industry that is rapidly growing due to the increasing demand for packaging. This could be a great opportunity since it's such a large market. With the increased demand for unique packaging, there has also been a rise in counterfeit packaging.

Market Dynamics

Market Drivers

Growing Demand for Packaging Products

The primary factor driving the growth of the anti-counterfeit packaging market is the growing demand for packaging products from pharmaceuticals, cosmetics, and food and beverage industries. There has been an increase in the cases of counterfeiting and associated financial losses for brand owners, due to which the manufacturers are moving towards developing products that contain anti-counterfeit packaging. The primary demand for anti-counterfeit packaging is from the retail industry, where the usage is majorly for food and electrical & electronic products. In recent years, the growing demand for consumer purchases from e-commerce platforms has increased drastically, giving rise to various counterfeit products in the market.

Increase in the Number of Counterfeit Products

The major factors impacting the anti-counterfeit packaging market include the increasing number of counterfeit products worldwide, increased focus on safety and security, and several initiatives taken by the government to fight against counterfeiting. Anti-counterfeit packaging is a way companies can ensure their products are less susceptible to being passed off as another brand. For instance, luxury clothing companies stamp their logos onto their clothing to prevent something like this from happening. Anti-counterfeit packaging is essential for a wide range of industries. The packaging market is enormous, and with this trend on the rise, the demand for anti-counterfeit packaging is also growing. With regular packaging, it can be difficult for customers to tell whether or not the product is authentic. Adopting anti-counterfeit packaging technology such as holograms, RFID, and mass encoding will prevent product duplication. These technologies are adopted to ensure that products that require anti-counterfeiting protection remain secure.

Market Restraint

High Cost of Production and Investment

The main factor restraining the growth of the anti-counterfeiting packaging industry is the high production and investment cost. Without an affordable solution, this could be a significant barrier to companies that want to take advantage of this new technology. Counterfeiting packaging has become a significant threat to companies looking to protect their brands. The production and investment cost for the materials needed for anti-counterfeiting packaging is high, so few companies can afford them without assistance. The label market is highly competitive, so the companies that can afford to protect their brands often have to pass on the costs of anti-counterfeiting materials and security measures to consumers. In addition, many companies lack the critical mass to make it worthwhile to invest in fighting counterfeiting because they do not sell enough products to recoup their investment quickly.

Market Opportunities

Growth in Emerging Economies

Emerging economies like India and China create new opportunities in the anti-counterfeit packaging market. Rising disposable incomes, increasing urbanization, and a growing middle-class population will drive the demand for anti-counterfeit packaging. There has been an increase in online sales in India and China. The main reason is that the world has become more counterfeit-prone due to a significant increase in the number of products transported and handled by the same number of people daily. Counterfeiters and forgers have made it easier to pass the counterfeit products and decrease the effectiveness of the anti-counterfeit packaging products. Furthermore, key manufacturing sectors such as agriculture, apparel and clothing, food and beverages, and pharmaceuticals have registered the highest growth in the emerging economies, which provides an excellent opportunity for packaging to set up their base and expand their operations.

Regional Analysis

By region, the global anti-counterfeit packaging market is segmented into North America, Europe, Asia-Pacific, South America, the Middle East, and Africa.

North America accounted for the largest market share and is estimated to grow at a CAGR of 12.1% during the forecast period. The North American region, including the U.S., Canada, and Mexico, is the dominant region in the global anti-counterfeit packaging market. The anti-counterfeit packaging market in the North American region is primarily driven by the significant initiatives taken by the governments in the US and Canada to combat the counterfeit market. Consumers have been asking for more transparency, which means that the traceability of products plays an important role. For example, in the United States, counterfeit goods have exceeded 1 trillion in value annually based on the value of goods seized by law enforcement as per the Organization for Economic Cooperation and Development. The presence of anti-counterfeit regulation has helped increase its market share. Manufacturers are increasingly integrating more advanced technologies into equipment to provide efficient identification and tracking of products.

Europe is the second largest region and is estimated to reach an expected value of USD 98 billion at a CAGR of 12.4%. The European region is expected to witness high growth in the market for anti-counterfeit packaging. The market is growing owing to the rising adoption of manufacturing technologies such as RFID, infrared, and micro-optic technologies in the packaging industry. The robust growth is also attributed to the increasing adherence to stringent packaging requirements in the pharmaceutical, food, and cosmetic industries. The growing automobile and consumer electronics market segment, along with high sales in Europe due to the increasing number of counterfeit products significantly affecting the automobile industry, is expected to contribute to the growth of this market during the forecast period. These factors and stricter regulations for anti-counterfeiting by the European Union (EU) Commission have led to more demand for anti-counterfeiting packaging.

Asia-Pacific is the third largest region. Asia-Pacific is expected to be the fastest-growing region in the counterfeiting technology sector because businesses are continually developing ways to ensure product integrity while addressing stringent health and safety requirements. For instance, many pharmaceutical companies manufacture their products in China, which leads the country to take a more proactive stance towards protecting consumers not only from counterfeit medication but also from food and medical devices. This means there's more awareness regarding product authenticity and anti-counterfeiting technologies such as barcodes, holograms, labeling, and RFIDS (radio frequency identification). Higher levels of awareness have led directly to higher levels of adoption by business owners. This has also increased demand for existing products and innovations moving forward.

Segmental Analysis

The global anti-counterfeit packaging market share is segmented by technology, end-use, and region.

Based on technology, the global anti-counterfeit packaging market is segmented into Mass Encoding, RFID, Holograms, Forensic Markets, and Tamper Evidence. Mass encoding accounted for the largest market share and is estimated to grow at a CAGR of 12.3% during the forecast period. It is the process of encoding a product or many products that are the same. Mass encoding is usually used for multiple musics or software CDs, but it can also apply to other products such as flash drives or t-shirts. To mass encode a product, users usually use a CD (or DVD) burner to create the discs. The mass encoding technology's stronghold on the market can be linked to its ability to trace products across several supply chain management and logistics nodes.

RFID is the fastest-growing segment. Radio-frequency identification, or RFID, is radio waves to transfer data from a tag attached to an object. The tag is a small, radio-frequency device with a unique identification number. RFID tags can replace barcodes, allowing the same products to be scanned without being labeled with a separate item such as a barcode or QR code. RFID is used with traditional methods like holograms, ink, and dyes to track premium wine. This partnership offers a way to regulate and keep the product supply steady while it is transported. For instance, the combined strategy of LaserLock's SecureLight and TM secure ink offers protection against counterfeiting food and beverage goods. The product is given additional security within the supply chain due to these multi-layered technologies, an up-converting IR function, and a customized digital signature. Thus, the growing popularity of customized digital signatures to add additional security promotes the market for anti-counterfeit packaging.

Based on end-use, the global anti-counterfeit packaging market is segmented into Pharmaceuticals, Food and Beverage, Apparel and Footwear, Personal Care, Electrical and Electronics, and Luxury Goods. The pharmaceuticals segment accounted for the largest market share and is estimated to grow at a CAGR of 12.2% during the forecast period. Anti-counterfeit packaging is utilized by pharmaceutical to prevent the sales of counterfeit drugs. Counterfeit drugs often have no active ingredients, or the ingredients are incorrect or harmful. To prevent this, it is essential to use technology that can certify that a product is indeed the work of a pharmaceutical company. Through this, the pharmaceutical industry can maintain the trust of the consumer and prevent crime. One of the factors influencing the growth in demand for anti-counterfeiting technologies in packaging is an increase in knowledge of anti-counterfeit packaging and human health & safety. The APAC area is anticipated to increase demand for anti-counterfeit packaging in the pharmaceutical industry because of its fast urbanization and industrialization. Packaging firms are now choosing anti-counterfeiting solutions to save money and safeguard their brands because of the tight regulations governing counterfeiting operations, the necessity for an effective supply chain, and the availability of low-cost counterfeiting technology.

Food and Beverage is the second largest segment. As a response to the counterfeiting of valuable products in the food and beverage industry, anti-counterfeit packaging is used. The packaging should include product authentication and a unique code, which can be decoded by special software. It should be packed on special tamper-proof pallets. Labeling is used to prevent counterfeiting in the beverage industry.

Electrical and Electronics is the fastest growing segment. The electrical and electronics industry is incredibly competitive, and businesses must ensure that their products are authentic. The need for secure packaging that helps protect products and reduce the risk of counterfeiting has never been greater. This can be done by developing unique packaging, graphic designs, and coverings that make it extremely difficult for counterfeiters to replicate.

Recent Developments

• April 2022 - 3M announced a partnership with Innovative Automation Inc. to offer an automated solution for tape applications that need precision, repeatability, and high output to industrial producers. The RoboTapeTM System for 3MTM Tape enables industrial producers to use 3M Tape in their assembly operations while increasing throughput, enhancing quality, minimizing or re-tasking manual labor, and lowering rework.
• April 2022 - Avery Dennison announced that operations would begin in its new state-of-the-art manufacturing facility in Greater Noida. The company will consolidate its manufacturing operations through this new facility to better serve customer demands while optimizing new technology and leveraging improved efficiencies.
• March 2022 - Avery Dennison Corporation announced the acquisition of Catchpoint Ltd, a UK company based in Yorkshire, England, and its linerless label technology.
• February 2022 - Avery Dennison Corporation announced the launch of AD Stretch, a first-of-its-kind program in the labels industry aimed at collaborating with startup innovators to solve critical challenges and create new opportunities in sustainability, customer experience, and value chains.
• February 2022 - Avery Dennison Corporation announced the acquisition of TexTrace AG, a technology developer specializing in custom-made woven and knitted RFID products that can be sewn onto or inserted into garments.