Anti-Counterfeit Packaging Market

Anti-Counterfeit Packaging Market

The global anti-counterfeit packaging market is valued at USD 179.4 billion in 2024 and is projected to reach USD 326.3 billion by 2029, growing at 12.7% cagr from 2024 to 2029.

Over an extensive period, counterfeit products have been a major source of business challenges as they can lead to monetary losses, harm brands, and even be dangerous to consumers. According to UL Standards & Engagement (ULSE), counterfeits have an estimated annual economic impact of USD 500 billion globally. Thus, anti-counterfeit packaging technologies are of vital importance. Due to the increase in fake electronics, automobile parts, medications, and luxury goods, businesses are forced to implement complex packaging solutions to safeguard their products and brands. Implementing modern technologies and stronger government regulations are driving the use of anti-counterfeit solutions across industries. The complexity and vulnerability to counterfeit threats are rising due to the globalization of supply chains and the expansion of e-commerce. Thus, the anti-counterfeit packaging market is set for substantial growth.

Attractive Opportunities in Anti-Counterfeit Packaging Market

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Anti-Counterfeit Packaging Market Dynamics

Driver: Rise in pharmaceutical crime

According to the Pharmaceutical Security Institute, around 6,897 pharmaceutical crime incidents were reported in 2023. The growing criminal activity has increased the demand for advanced anti-counterfeit packaging solutions. These solutions are essential for safeguarding consumer confidence, preserving public health, and avoiding significant financial losses for pharmaceutical businesses. With pharmacies operating online, selling illegal or counterfeit medications, the threat of counterfeit drugs is growing. However, digital verification tools and unique identifying codes in anti-counterfeit packaging assist customers and regulatory agencies in confirming the legitimacy of products. These safeguards preserve pharmaceutical corporations' brand names and protect customers. Sales of anti-counterfeit packaging are expected to increase because of the growing complexity of pharmaceutical crime.

Restraint: Significant initial investment

The high barrier to entry for new competitors comes from the large capital expenditure required for anti-counterfeit technologies. This is primarily due to the high cost of the cutting-edge technologies needed to ensure product authenticity. These technologies’ initial and ongoing costs are high, making them more financially demanding. Emerging companies may need to invest in reliable systems and even acquire their fleet of vehicles to ensure safe and timely delivery, especially in the critical pharmaceutical sector, increasing overall costs. It takes time and money to establish strong distribution networks. New companies may find it difficult to compete with established businesses lacking infrastructure and contacts. New companies must comply with strict legal and regulatory requirements and work to build a credible brand. The complexity and expense of entering the market are further increased by the time and money required to navigate these restrictions.

Opportunity: Customized solutions across various industries

As anti-counterfeit packaging may be customized to meet the unique requirements of different industries, it offers tremendous growth prospects. Due to this adaptability, customers and brand owners can select specific technologies and approaches that meet their needs and those of their target markets. Luxury goods producers combat counterfeit goods by utilizing cutting-edge authentication elements like holographic labels and distinctive serial numbers, protecting their brand's reputation and customers' trust. Anti-counterfeit packaging is used in the electronics, automotive parts, pharmaceuticals, and food and beverage industries. For instance, automakers use specific labeling and tracking systems to ensure the safety and performance of vehicles and stop the sale of fake spare parts. Thus, the demand is driven by the ability of anti-counterfeit packaging solutions to adapt to diverse industry needs.

Challenge: High R&D investment

To drive innovation and enhance their goods and solutions, companies in the anti-counterfeit packaging industry must invest heavily in research and development. It can help expand their market presence and cut expenses. Smaller businesses sometimes face difficulties obtaining the expertise and capital required for these expenditures. However, with the increasing demand for authentic products and a heightened focus on brand protection, companies must prioritize these expenditures to mitigate financial risks and strengthen their market position.

Anti-Counter Packaging Market: Ecosystem Analyses

The anti-counterfeit packaging market ecosystem involves manufacturers, technology providers, regulatory bodies, and consumers collaborating to address the rising threat of counterfeit goods. This ecosystem leverages advanced technologies such as RFID, holograms, and blockchain to boost product security and traceability. Manufacturers and technology providers create and deploy these solutions, while regulatory bodies establish standards and guidelines to ensure compliance.

Mass encoding technology to account for highest share in forecast period

The mass encoding segment accounted for the largest market share in 2023. This technology assists in preventing tampering and counterfeiting by enabling close monitoring and authentication across the supply chain. Mass encoding offers barcodes, digital mass serialization, digital mass encryption, and other technologies. Mass encoding is adaptable and simple to incorporate into current packaging procedures. It is ideal for sectors handling large volumes of products worldwide, such as consumer goods, electronics, and pharmaceuticals. Mass encoding improves customer engagement by making it simple to verify the authenticity of products, which builds loyalty and assurance.

Pharmaceutical end-use industry to register highest CAGR in forecast period

Counterfeit medications have been a severe problem that has affected all nations for many decades, but it has an increased impact on developing countries. According to a 2023 ASOP Global survey, a large number of Americans feel at ease ordering drugs online, with 55% citing unapproved internet pharmacies as a convenient or economical option and 69% accepting restricted pharmaceuticals via telehealth. ASOP Global advocates for more stringent laws to safeguard customers against fake medications. Governments are mandating anti-counterfeit technology for pharmaceutical packaging. The 'Be Aware' campaign of the World Medical Association aims to inform medical professionals how to identify fake medications and protect patients. RFID and other track & trace technologies are commonly used for pharmaceutical & healthcare product packaging.

North America dominated the market in 2023.

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North America has emerged as the dominant force in the global anti-counterfeit packaging market due to several key factors.

The region is estimated to account for the largest share of the global anti-counterfeit packaging market during the forecast period. It is primarily due to the huge number of food, pharmaceutical, and consumer goods producers investing in anti-counterfeit solutions. The Global Innovation Policy Centre (GIPC) of the Chamber of Commerce in the US emphasizes the significance of intellectual property (IP) protection and anti-counterfeiting measures. Canada and the US rank high for IP protection initiatives, according to the GIPC's International IP Index. The GIPC develops best practices for supply chain security and anti-counterfeit packaging with governments and business partners. To improve the security of the pharmaceutical supply chain and fight counterfeit medications, the FDA has started the Counterfeit Prevention and Deterrence Program. The anti-counterfeit packaging market in North America is dominated by companies like Avery Dennison Corporation, CCL Industries Inc., 3M Company, and Zebra Technologies Corporation.

Anti-Counterfeit Packaging Market Players

The anti-counterfeit packaging market comprises key manufacturers such as 3M (US), Avery Dennison Corporation (US), CCL Industries Inc. (Canada), SATO Holdings Corporation (Tokyo), and Zebra Technologies Corporation (US). Product launches, acquisitions, and expansions were some of the major strategies adopted by these key players to enhance their positions in the anti-counterfeit packaging market. The key players also focused on new projects and contracts.

Anti-Counterfeit Packaging Scope

This research report categorizes the anti-counterfeit packaging market based on technology, end-use industry, and region.

Anti-Counterfeit Packaging Market, Based on Technology:

• Mass Encoding
• RFID
• Hologram
• Tamper Evidence
• Forensic Markers
• Other Technologies

Anti-Counterfeit Packaging Market, Based on the End-use Industry:

• Food & Beverage
• Pharmaceutical
• Personal Care
• Electronics & Electrical
• Automotive
• Apparel & Footwear
• Luxury Goods
• Other End-use Industries

Anti-Counterfeit Packaging Market, Based on the Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Recent Developments

• In April 2024, Avery Dennison announced the expansion of its AD Pure range, a portfolio of inlays and tags completely free of PET plastic. AD Pure inlays and tags are sustainably produced with innovative antenna manufacturing technology. The antenna and chips are applied directly on paper, making the range 100% plastic-free.
• In January 2024, Avery Dennison launched the AD 2Metal Rock M781 RFID tag for harsh conditions. This global performing tag is designed for tagging metal, liquid, and difficult-to-tag non-metal objects. The thin, soft, and flexible tag structure ideally suits curved (convex and concave) and flat surfaces.
• In October 2023, Avery Dennison Corporation signed an agreement to acquire Silver Crystal Group, an established player in sports apparel customization and application across in-venue, direct-to-business, and e-commerce platforms.   
• In May 2023, SATO Holdings Corporation announced that its subsidiary SATO International America, Inc., acquired Stafford Press, Inc., a company based in Redmond, specializing in inkjet color on-demand horticulture tags and labels in the North American market.
• In April 2023, Avery Dennison Corporation acquired LG Group, Inc. (“Lion Brothers”), a Maryland-based designer and manufacturer of apparel brand embellishments.
• In April 2023, CCL Industries Inc., announced the acquisition of eAgile Inc. (“eAgile”) and the intellectual property of Alert Systems ApS (“Alert”).
• In January 2023, Avery Dennison Corporation announced the acquisition of Thermopatch, a leader in industrial laundry labeling, heat transfers, and emblems on textiles, advancing the company's strategy to drive growth in external embellishments.
• In November 2022, SATO, a global leader in auto-ID and labeling solutions, partnered with Loftware, the global leader in Enterprise Labeling and Artwork Management solutions, to launch the world's first cloud-based RFID tag encoding and logging solution.
• In May 2022, CCL Industries Inc., announced the acquisition of Floramedia Group B.V. (“Floramedia”), a company based in Westzaan with in-house tag & label creation and production, complemented by sales offices in seven countries.
• In March 2022, Zebra Technologies Corporation announced the acquisition of Matrox Imaging (Matrox Electronic Systems Ltd.), a proven developer of advanced machine vision components and systems.
• In February 2022, Avery Dennison Corporation announced the acquisition of TexTrace AG, (“TexTrace”), a technology developer that specializes in custom-made woven and knitted RFID products that can be sewn onto or inserted into garments.
• In January 2022, Avery Dennison Corporation announced the acquisition of Rietveld (RTVPRINT), a leading full-service provider of embellishment solutions and application and printing methods for performance brands and team sports in Europe.

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