Anti-counterfeit Packaging Market - By Technology (Forensic Markers, Holograms, Mass Encoding, RFID, Tamper Evidence), By Vertical (Apparel & Footwear, Automotive, Electrical & Electronics, F&B, Luxury Goods, Personal Care, Pharma) & Forecast, 2023 – 2032

Anti-Counterfeit Packaging Market Size

Anti-Counterfeit Packaging Market was valued at around USD 120 billion in 2022 and is anticipated to grow at a CAGR of over 12% between 2023 and 2032. Anti-counterfeit packaging is a technology intended to discourage counterfeiters from creating and selling fake or imitation goods. Protecting product authenticity and guaranteeing that customers receive authentic and secure goods are the two main objectives of anti-counterfeit packaging. It uses a range of techniques and technologies such as holograms & security labels, tamper-evident packaging, QR codes & barcodes, invisible ink, UV printing, microprinting, and RFID. For instance, in April 2023, Amazon unveiled an Anti-Counterfeiting Exchange (ACX) solution, which eliminates or discourages counterfeits across the retail sector. The ACX solution makes online shopping safer and more difficult for fake goods sellers. It also protects private sector brands, consumers, and other owners from counterfeiters.
 

The need for anti-counterfeit packaging is rising as manufacturers place a greater emphasis on protecting their brands to reduce imitation. Since replicated electronics, auto parts, and pharmaceuticals may not meet quality control requirements, they pose a significant risk to the health and safety of consumers, which could result in injury or even death. This can damage a brand's reputation and trust when customers unintentionally buy counterfeit goods under the mistaken belief that they are authentic. As a result, manufacturers are now increasingly focusing on anti-counterfeit packaging.
 

High setup and innovation costs associated with producing anti-counterfeit packaging discourage potential customers and new entrants from accepting anti-counterfeit solutions, slowing market growth. Technologies including barcodes and QR codes can be copied or faked without the knowledge of the intended audience, which further restrains market growth. As there is a lack of awareness and knowledge about anti-counterfeit packaging, businesses need to discreetly educate customers about the technologies they use to prevent counterfeiters from replicating the product features.
 

COVID-19 Impact

The COVID-19 pandemic had major impacts on the packaging industry due to disruptions in the supply chain, resulting in a shortage of raw materials such as plastics, papers, labeling, and other required materials. In the first quarter of 2020, there was a decline in the demand for FMCG products as consumers were afraid that touching the packaging would result in them contracting the infection. Which result in decrease in demand for anti-counterfeit packaging during this period.
 

Anti-counterfeit Packaging Market Trends

The market is expected to grow owing to the packaging industry's overall expansion, which is being driven by the rising demand for packaging products from the food & beverage, personal care, and pharmaceutical sectors. The global population is growing rapidly, especially in urban regions, leading to higher consumption of packaged products including pharmaceuticals, personal care items, and packaged food & beverages. Due to busy lifestyles, consumers are willing to pay more for these products, boosting the demand for packaging. This increasing demand for packaged products contributes to the growth of the anti-counterfeit packaging industry.

The rise of e-commerce and Direct-to-Consumer (DTC) sales channels has created a surge in demand for packaging materials. Since every product purchased through e-commerce and DTC channels is shipped directly to the customer, it needs to be packaged separately to ensure protection during transit. To guarantee that online orders arrive undamaged, products must be packaged securely and protectively. This necessitates flexible packaging options that can handle the wide range of goods being sold online. Thus, the demand for anti-counterfeit packaging is increasing to ensure the product’s information, safety, and authenticity.
 

Anti-counterfeit Packaging Market Analysis

Based on technology, the market is segmented into forensic markers, holograms, mass encoding, RFID, tamper evidence, and others. The mass encoding segment dominated the market with a share of over 29% in 2022.
 

• Mass encoding is the process of uniquely identifying many products with a code or identifier that can be verified by manufacturers, distributors, and consumers to confirm the authenticity of the product.
   
• Customers can read the code on the packaging using a scanner or a mobile app. Subsequently, the code is cross-referenced with the manufacturer's database by the scanner to confirm its legitimacy.
   
• With the growing consumption of products in different end-use segments, the demand for mass product verification is increasing, further enhancing the demand for mass encoding technology.
   

Based on vertical, the market is divided into apparel & footwear, automotive, electrical & electronics, food & beverage, luxury goods, personal care, pharmaceuticals, and others. The personal care segment is anticipated to register a CAGR of over 14% through 2032.
 

• Personal care products are witnessing rising adoption by both genders, leading to significant market growth during the forecast period. These products with anti-counterfeit packaging can have their authenticity verified online or through a mobile app by holograms, QR codes, or unique serial numbers.
   
• Customers can also confirm the products by looking at the labels and seals, which feature microprinting or specialized inks. The increasing use of personal care products is propelling the market growth.
   

North America dominated the global anti-counterfeit packaging market with a share of over 34% in 2022. Manufacturers in North America are focused on developing sustainable anti-counterfeit packaging solutions, which follow certain regulations in the region. The U.S. is a global leader in the production and consumption of processed food products. The food manufacturing sector in the country is dominated by large-scale industries and highly diversified corporations. With over 17,000 production facilities across the country, manufacturers are expected to adopt anti-counterfeit technologies to curb fake brand production. However, due to the rising consumption of packed food and other products in the region, the adoption of track & trace technologies is expected to increase in the future.
 

Anti-counterfeit Packaging Market Share

Players in the anti-counterfeit packaging industry focus on implementing different growth strategies to strengthen their offerings and expand their market reach. These strategies involve new product developments & launches, partnerships & collaborations, and customer retention. These players heavily invest in research & development to introduce innovative solutions in the packaging industry. Major players operating in the anti-counterfeit packaging industry are:

• 3M Company
• Authentix, Inc.
• DuPont
• Intelligent Label Solutions
• SML Group
• SysTech International

Anti-counterfeit Packaging Industry News

• In September 2022, 3M established the “3M Verify platform” to verify and report counterfeits of 3M products. This platform was built on the success of its anti-counterfeit reporting during the COVID-19 pandemic, which included all the products made by the company. Using the platform, the company can take action to deter or stop fraud to ensure consumer safety.
   
• In July 2021, Authentix Inc., an authentication and information services provider, acquired Strategic IP Information Pte Ltd. (SIPI), an online content and brand rights protection provider. This acquisition helped Authentix offer counterfeit services to track unauthorized channels using SIPI’s proprietary online tools.
   

The anti-counterfeit packaging market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032 for the following segments:

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Anti-counterfeit Packaging Market, By Technology

• Forensic markers
• Holograms
• Mass encoding
• RFID
• Tamper evidence
• Others

Anti-counterfeit Packaging Market, By Vertical

• Apparel & footwear
• Automotive
• Electrical & electronics
• Food & beverage
• Luxury goods
• Personal care
• Pharmaceuticals
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA