Anti-Counterfeit Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Anti-Counterfeit Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The anti-counterfeit packaging market is projected to register a CAGR of 7.81% during the forecast period (2022-2027). The evolving regulatory landscape for the protection of authenticity of life-critical products, technological advancements in improving anti-theft measures, increasing diversity in the ongoing threats, and the need for brand protection have been instrumental in fueling the growth of the anti-counterfeit packaging market.

Key Highlights

• The introduction of regulations, such as the Anti-counterfeiting Trade Agreement by the United States and the labeling and serialization measures by the EU Commission, is expected to positively impact the market in the developed economies over the forecast period.
• In May 2022, according to the Hindu, HP India seized INR 40 crore worth 4,98,000 counterfeit products between July 2020 and September 2021 under its Anti-Counterfeiting and Fraud (ACF) Programme in the country, which is an indicator of a severe threat to the consumer's health in India and worldwide. The developing economies, also known to be the major importers of drugs, are the most affected regions due to this trade.
• Countries such as China, India, South Korea, Brazil, and Turkey, have introduced procedures designed to tighten the pharmaceutical industry's supply chain security. Silicon dioxide-based tags are being used as it is affirmed by the US Food and Drug Administration as generally recognized as safe (GRAS) and considered fit for human consumption.
• However, High setup and innovation costs are required to manufacture anti-counterfeit packaging, discouraging new entrants and potential clients from accepting anti-counterfeit solutions and slowing market growth. Furthermore, some existing technologies, such as barcodes and QR codes, are easy to replicate without proper customer awareness, limiting market growth.
• The coronavirus pandemic spread significantly impacted the supply chain of packaging companies, resulting in a shortage of raw materials such as plastics and labeling papers. In addition, a slight decrease in demand for FMCG products was observed in the first quarter of 2020 as people feared Covid contraction by touching the packaging products. However, packaging companies and authentication technology providers concentrated on developing solutions to effectively communicate the benefits of anti-counterfeit packaging in addressing the impact of Covid-19 and ensuring the safety and quality of their packaging materials while keeping an eye on employee health and well-being.

Key Market TrendsPharmaceuticals and Healthcare to Drive the Market Demand

• Counterfeit pharmaceutical is one of the most lucrative sectors of the global trade in illegally copied goods. Fake drugs harm and even kill millions of people across the world. It inflicts serious damage on the brand names of big pharmaceutical manufacturers.
• Several incidents of fake COVID vaccines being administered to the populations of various countries have recently been reported. For example, the World Health Organization (WHO) discovered counterfeit versions of Covishield (manufactured by the Serum Institute of India), which caused widespread concern among stakeholders worldwide. Also, Pfizer's counterfeit vaccine vials were discovered in various parts of the United States and around the world. This has caused concern among consumers and the government, to overcome to this governments across regions are exercising laws to probability the use of counterfeiting medicines.
• The growing public use of online pharmacies, along with a new mass producer of counterfeit medicines, has widened the market for falsified drugs. According to the WHO, around 50% of the drugs for sale in the internet are estimated to be fake.
• Additionally, many counterfeit products are low-quality and can cause injuries to numerlous industries. For instance, according to U.S. Customs and border protection has seized goods worth USD 367.92 million in FY 2021.

Regulations Have Assisted North America to Hold Major Share

• North America is one of the most significant markets in the anti-counterfeit packaging market. Increasing consumer demand for food and beverages, healthcare products, cosmetics, and electronics is expected to contribute extensively in the growth of this market.
• Consumers are increasingly demanding for transparency, which results in a significant rise in the traceability of these products. The region has the United States, whose counterfeit goods exceed USD 1 trillion annually based on the value of goods seized by law enforcement, as per the Organization for Economic Cooperation and Development. The presence of refined anti-counterfeit regulation has helped the market in increasing its market share.
• Thus, in order to cater to the growing demand, manufacturers are integrating innovative technologies in equipment with specific functionalities for efficient identification and tracking of products. Additionally, according to AstraZeneca, North America is projected to have a sale of USD 706 billion by 2025, this exposes the region to more counterfeit products. But, since it is a matured market the demand for anti-counterfeit packaging market will increase.
• The North American anti-counterfeit packaging market is being driven by an increased emphasis on brand fortification and government support. Aside from these drivers, less investment in R&D and high-cost set-ups may stifle the growth of the anti-counterfeit market in North America.

Competitive Landscape

The anti-counterfeit packaging market is moderately competitive. In terms of market share, few major players currently dominate the market. However, with innovative and sustainable packaging, many companies are increasing their market presence by securing new contracts by tapping new markets.

• July 2021 – Authentix acquired Strategic IP Information Pte Ltd (SIPI), an online brand and content rights protection provider. The acquisition will expand Authentix's portfolio of digital security technologies to include online anti-counterfeiting and content rights solutions and increases the scope of offerings for brand protection clients.
• June 2021 – OPTEL introduced OPTEL IdentifAI, the market's most powerful product authentication solution. This will help the company authenticate its products with minimal disruption to its manufacturing and packaging lines. Consumers can scan products using a mobile device to ensure what they bought is what they got.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.