In the face of increasing losses due to more sophisticated counterfeiting and the theft of goods in transit, the packaging market is seeking to develop higher levels of brand protection and security.
Well-recognised threats to brands and goods, combined with revised regulations regarding the shipment of perishable items such as food and drink, are leading to the emergence of new and exciting packaging innovations designed to protect products from both counterfeiting and theft.
And this is good news for the industry as a whole. A recent report about the market predicts that it will grow at an impressive compound annual growth rate of 5.3% over the next five years, reaching $3.6 billion by the end of the forecast period.
What Is Driving This Growth?
There are several factors driving this predicted growth. New laws to help prevent tampering with goods in transit through compulsory labelling and the use of ever more sophisticated tamper-proof measures are currently being introduced in both the EU and America. These will be applicable for ‘life-critical products’, which include food, drinks, industrial components and pharmaceuticals.
In addition, a number of countries – including India, Brazil, Turkey, China and South Korea – have already introduced measures aimed at increasing security within the transportation of goods used in the pharmaceutical industry.
Track and Trace
And the World Health Organization and Framework Convention on Tobacco Control are leading the way by mandating the use of so-called track and trace technologies. These innovative new developments aim to ensure all manner of goods can be accurately tracked throughout their journey from the producer to the client, ensuring that nothing happens to them along the way.
Track and trace technology, in fact, is expected to see the largest growth in coming years – already it makes up 37% of the market. The technology is so advanced that much of it can even be accessed via smartphones.
Another critical factor driving the growth is the extension of certain trade zones across the globe, which have made it easier for counterfeit products to cross borders.
Where Is the Growth Expected?
Experts say the majority of the growth in the area is likely to occur in management systems, software and equipment, with a small decline predicted in actual physical components.
A greater emphasis is being placed on easy measures such as printable codes, which can be used across the board in a wide range of applications to improve brand protection.
The main users of the technology will be the food and drinks sector, with a market share of 38.8%, followed by the industrial sector and pharmaceuticals industry.
So it seems that brand protection and security will be set to play an ever-increasing part in a range of industries in the coming years.
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