EMERGING TRENDS: FIGHTING THE COUNTERFEITS WITH TECHNOLOGY
According to A STUDY called ‘Combating Counterfeit through Technologies, Global Standards and Best Practices’ Counterfeit products have an economy-wide effect on trade, investment, employment, innovation, environment, and most importantly, on the health and safety of consumers. These also damage the company’s brand image, which ultimately results in loss of revenue for industry and governments. In 2018, Industry reports estimated the FMCG counterfeit market to be worth Rs. 72,000 crore highlighting the extent of the problem. More worryingly, counterfeits and fakes hinder technology and innovation thus decimating the nation’s quest for 10 trillion economy by attacking the very basis for India’s economic development and growth trajectory. -will play a key role in charting out India’s growth strategy. Globally, a report by the Organization for Economic Co-operation and Development (OECD) places the effect at up to $400 billion of international trade that could have been for counterfeit and pirated in 2018.
FACTORS DRIVING GROWTH OF ANTI COUNTERFEIT TECHNOLOGIES
Anti-counterfeit technologies are implemented by many manufacturing companies and regulatory bodies in recent years across almost every industry. The major global drivers include 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. 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 is considered fit for human consumption. Anti-counterfeit measures play a key role in preserving the brand value for any product. For such reasons, companies across almost all industries, big and small, have invested heavily in anti-counterfeiting measures.
Increasing safety concerns among the consumers is driving companies to adopt adequate authentication and anti-counterfeit technology. Increase in easily available and cheap forgery technologies has prompted packaging companies to opt for authentication technology with an aim to safeguard against financial losses and brand valuation. Rising concerns over human health as fake medicines infiltrate pharmacies have negatively affected the pharmaceuticals sector, impelling in-depth anti-counterfeit technology in this sector.
The Internet has created an anonymous selling platform for sophisticated counterfeiters of products. The importance of anti-counterfeiting has emerged as a driver in a company’s growth and revenue distribution. Key drivers for anti-counterfeiting solutions are an expansion of e-Commerce which enhances the packaging requirements. Every company today, requires an efficient supply chain to increase its performance. Track & Trace features are a very useful tool for the companies to keep a check on their supply chains. Logistics and transportation companies benefit the most from such technologies as they help in effectively tracing the packages.
EMERGING TECHNOLOGICAL SOLUTIONS
Demand for the remote authentication technology is expected to grow abundantly due to the crisis. The anti-counterfeit packaging market was valued at USD 5051.64 million in 2019, and is expected to reach USD 12670.22 million by 2025, witnessing a CAGR of 17.48% over the forecast period (2020-2025).
AFTER THE PANDEMIC, PHARMACEUTICALS WILL DRIVE MARKET DEMAND
The anti-counterfeit market can be segmented on the basis of technology, usage, end-use industry and regions. Technology wise the key product segments are coding & printing, RFID, holograms, security labels and packaging designs. Usage segmentation includes track & trace technology, tamper evidence, overt features, covert features and forensic indicators. The key end-use industries for this market include food & beverages, healthcare & pharmaceuticals, industrial & automotive, consumer products and clothing & accessories.
Counterfeit pharmaceuticals is one of the most lucrative sectors for the counterfeiters. Today, fake drugs harm and even kill millions of people across the world. It inflicts serious damage on the brand names of big pharmaceutical manufacturers. Even lifesaving drugs are counterfeited. In November 2019, the WHO placed the fake medicine accounts at 10% of USD 300 billion in the pharmaceuticals industry, especially in low- and middle-income countries. 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 on the internet are estimated to be fake.
By technology, the RFID segment is projected to grow at the highest CAGR from 2018 to 2023. This growth can be attributed to its usage in almost all industries such as automotive, chemical, construction, food & beverages, and pharmaceutical industries. Radio-frequency identification (RFID) can help provide a quick way to retrieve information, track pharmaceuticals or items in the supply chain, and help avoid the costs associated with counterfeit or adulterated medications. RFID is a technology that uses radio waves to automatically track people or objects and associate programmed information with these people or objects.. When an RFID-tagged item is sent through a reader’s field of view, a distinct data code is transmitted as the antenna transfers the information from the tag to the reader or vice versa.
The Barcode Sector of the technology segment has returned the highest share in the anti-counterfeit packaging market till now and is projected to grow at a second-highest rate during the forecast period. This is due to the fact that it is highly preferred for brand protection in almost all industries. These companies are upbeat about this technology as the information and code embossed over the barcode does not allow the covert data to be displayed on the label, making it difficult for counterfeiters to copy.
By Usage Feature, the Overt Technology is projected to be the largest market during the forecast period. In terms of value, the overt technology of the usage feature segment accounted for the largest market share in 2017 and is also projected to grow at a higher CAGR.
Track &Trace technology is expected to gain maximum traction as rapid industrialization and strict regulation to safeguard against the packaging imitation are result in explosive growth for the anti-counterfeit technologies. This technology is used by the packaging industry as well as during product manufacturing. Technologies such as barcodes and RFID’s help trace the package by identifying the package along the supply chain. Coding & printing technology which dominated the market in the recent past is expected to show similar growth but share space with these emergent technologies.
Blockchain technology , the public digital ledger technology will be the next major disruption in the sector as per 62% of the automotive executives The automotive sector is ever-evolving and industry players are constantly driving innovations to increase efficiency, improve security, reduce environmental impact, and refine the customer experience.
Shriram Veritech, a prestigious name in brand protection services and a torch-bearer against counterfeiting has developed customized solutions to fight against counterfeiting. Many prestigious brand owners and institutions have trusted and partnered with Shriram Veritech to safeguard the reputation of their institution and their brand name.
VERITECH helps brand owners design and deploy advanced Authentication Solutions for cosmetic products by adding overt and covert security features to detect, identify, quantify and deter fraud. With co- opting guidance and our inimitable experience & expertise, brand owners can leverage the right functional authentication features that also satisfies relevant interests for:
Brand Protection: We fulfill the brand owners’ desire to protect a product (brand) against counterfeiters, diversion and illicit trade that creates a company with positive ROI.
Packaging: Security solutions that provide full proof trust and reliability.
Seamless integration with existing ecosystems
Enhances packaging’s look and feel
Digital platform provided