Surging Counterfeiting of Products Pushing Up Global Demand for Anti-Counterfeit Packaging Technologies
Solutions for ensuring the secure and safe packaging of products, aiming to reduce brand infringement and counterfeiting, are being widely adopted by various sectors. Such anti-counterfeiting solutions are being integrated with advanced technologies to allow for the smooth shipment of products along the supply chain. Manufacturers can track and trace their shipments and stop fakes from making it to the market. Additionally, consumers benefit from proper packaging and labeling as they tell them whether the product is genuine or fake.
Resultingly, the pharmaceutical and healthcare category will exhibit the fastest growth in the application segment of the anti-counterfeit packaging market in the coming years. These technologies are finding rapid adoption to counter the trade of fake pharmaceutical products, which not only harm the business prospects for genuine labels but also pose a grave threat to consumers. As per Interpol, fake medical products worth $23,414,483 were seized globally under Operation Pangea in 2021. Since pharma and medical devices are a rapidly growing industry, the threat of counterfeits is o becoming bigger here.
To tackle a similar situation in other industries, a variety of technologies are being used to produce anti-counterfeit packaging. Among them, the track and trace technology remains the most popular because it allows manufacturers to keep tabs on shipments along the supply chain. While this is allowed for by genuine and unique coding and marking, fake labels can help identify counterfeits at ports, borders, customs offices, and retail stores.
In the past, North America held the largest share in the anti-counterfeit packaging market, and it is also expected to maintain its dominance in the coming years. It is attributed to the presence of a large number of food and beverage, pharmaceutical, and other consumer goods companies in this region. The FDA has stringent regulations for the information proper packaging must include, such as the batch number, manufacturing and expiry dates, and manufacturer information, including a unique code, which can be a hologram, barcode, QR code, or any other visual cue.
Moreover, in the coming years, the Asia-Pacific region will witness rapid growth in the demand for anti-counterfeit packaging technologies. The increasing population and its rising income are raising the demand for packaged food and beverage items. It gives unauthorized manufacturers and distributors a vast opportunity to tap the growing consumer base, thereby spawning counterfeits. According to the U.S. Department of Homeland Security, almost 44% of the fake goods seizures in 2020 happened in China, while Hong Kong and Taiwan accounted for 35% and 2% of the seizures, respectively.
Therefore, the key reason behind the growth of the anti-counterfeit packaging market in the region is the increasing consciousness of the fact that most of the counterfeits originate in this region, which then make their way to all parts of the world. Therefore, consumers in the region are being educated on the harms of counterfeits and ways to tell real from fake. A key focus of such awareness campaigns is packaging as it is the first thing that catches customers’ eye and is a representative of the manufacturer.
Hence, the need for a secure shipment process for various products, to remove counterfeits from circulation, will propel the demand for anti-counterfeit packaging technologies in the coming years.