Anti-counterfeit packaging is defined as the process of assigning secure packaging to the product in order to minimize counterfeiting or infringement. It also prevents imitation and confirms the safety of the goods. Secure packaging is one of the essential techniques to avoid counterfeiting. Anti-counterfeit measures are taken by companies, which are helping them in minimizing losses due to counterfeiting in terms of revenue and brand image. Two major factors influencing the adoption of anti-counterfeit packaging are economic damage to the company and consumer health risks.
The implementation of anti-counterfeiting technologies is an important strategy taken up by many packaging manufacturing companies and regulatory bodies in recent years. An increase in awareness about anti-counterfeit packaging and human health & safety is one of the factors contributing to the growth in demand for anti-counterfeiting technologies in packaging. North America and Europe accounted for major shares of the anti-counterfeit packaging market in 2019, in terms of value; however, APAC is projected to grow at the highest CAGR, due to the rapid industrialization and increase in disposable income of people, which have led to the increase in demand for branded products.
The strict laws pertaining to counterfeiting activities, need for efficient supply chain, and availability of cost-efficient counterfeiting technologies have propelled packaging companies to opt for anti-counterfeiting technologies, which enable cost savings and brand protection. Urban population, rapid industrialization, and laws & regulations are driving the growth of the global anti-counterfeit packaging industry. The increase in the GDP of a particular country will enable it to work with more advanced and effective packaging solutions, which will, in turn, increase the demand for anti-counterfeit packaging solutions and technologies.
The segments considered for this report are based on the technology, usage feature, end-use industry for anti-counterfeit packaging solutions, and region. The segmentation based on technology consists of RFID, holograms, tamper evidence, forensic markers, mass encoding, and other upcoming technologies such as security labels, embedded image, packaging & designs, and security inks & films. Usage features such as overt and covert features are covered in the report. The end-use industries for anti-counterfeit packaging solutions include food & beverage, pharmaceutical, personal care, electrical & electronics, automotive, luxury goods, footwear & apparel, and others (books, sports equipment, furniture, and toys). The final segment, that is, region, consists of the major regions such as North America, Europe, APAC, South America, and the Middle East & Africa.
There are certain factors prevailing in the market that hinder the growth of this industry. Some emerging economies do not have the required infrastructure for setting up anti-counterfeit technology manufacturing units. The regulations pertaining to free and fair trade formed one major restraint to the market. One of the major challenges solution manufacturers need to overcome to grow successfully in this market is to come up with technologies & solutions that are economical for & easily deployable in enterprises and non-deterrent to counterfeiters.
Companies dealing in anti-counterfeit packaging have grown tremendously since 2018; however, consolidations in this industry have slowed down as companies are not willing to take on significant debt to acquire additional facilities. Instead, companies involved in anti-counterfeiting solutions & technologies used for brand protection have grown in terms of the number of operations they manage. The cost of operations of each company varies according to the area it operates in, the type of solution, and the packaging level of the product on which the anti-counterfeiting technologies are being deployed. The regulations imposed in different countries also affect the margins of the company.
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