How Product Labels Affect Consumer Trust in the FMCG Industry

In India’s Fast-Moving Consumer Goods (FMCG) business booming fiercely, consumer loyalty is tenuous, and the competition is intense; trust has emerged as the new currency. Product label is one of the most vital and seemingly underappreciated sources of this trust.

Year	Counterfeit Percentage
2019	20%
2020	22%
2021	23.50%
2022	25%
2023	24.20%
2024	22.8% (Est.)

A product label is more than a mere visual component – it addresses the confidence of the consumer head-on. It educates; it comforts and usually determines if a customer picks your brand or looks elsewhere. Alas, the FMCG industry in India has seen a rising menace: counterfeit items, deceptive packaging, and tamper-sensitive labels. These not only undermine the confidence of the consumer but also irreparably destroy brand equity.

The Issue: Fakes and Consumer Skepticism in the FMCG Industry

India is among the world’s top five nations plagued by counterfeit consumer products, with the FMCG industry—particularly food, cosmetics, baby care, and personal care—being the most targeted. Over 25% of FMCG products sold in India are fake or substandard, a report by ASPA (Authentication Solution Providers’ Association) states.

Critical Issues:

• Counterfeit Product Proliferation: Copy packaging and labels that are very similar to the original cause confusion and suspicion.
• Insufficient Tamper-Proof Packaging: Conveniently tamperable labels lower consumer trust in product safety and genuineness.
• Insufficient Information or False Information: Labels with missing mandatory disclosures (according to FSSAI/Legal Metrology regulations) or false information impact compliance and credibility.
• Non-interactive Labels: Conventional labels leave no opportunity for the consumer to check authenticity, particularly in e-commerce environments.

Consumer Perspective: Why Labels Build Trust

• 84% Indian consumers check the label before purchasing a product, according to Nielsen FMCG Survey 2023.
• 68% repute tamper-proof label enhances their confidence in the brand
• 57% feel that QR codes or holograms give them the impression that the product is original.

The Solution: How  Veritech Hopes to Protect Your Brand

 Veritech Solutions Pct. Ltd., the pioneer in cutting-edge brand protection solutions, has become a trusted partner for FMCG organizations in India. With three decades of expertise in security printing, holography, and smart labeling, Veritech offers customized anti-counterfeiting labeling systems that meet both compliance and consumer trust.

✅ 1. Tamper-Evident & Tamper-Proof Labels

Veritech provides a variety of labels that are void-releasable or break-seal upon tampering. They include: – Void-release labels – Break-seal labels – Neck-band holograms for bottles. These are extremely important to baby care, healthcare, supplements, and edible oils.

✅ 2. Holographic & Optically Variable Devices (OVDs)

Employing proprietary holography technology, Veritech develops labels that: – Are impossible to easily replicate – Impart premium quality – Enhance shelf impact and consumer trust

✅ 3. Intelligent & Interactive Labels

Today’s consumers desire certainty with a click of a phone. Veritech provides: – Unique serial ID-enabled QR codes – Authentication platforms based on mobile – Blockchain-enabled systems to ensure complete product traceability

✅ 4. Regulatory Compliant Labels

Veritech guarantees all labels contain all the declarations mandated by: – FSSAI for food and drinks – Legal Metrology Act for weights & measures – BIS/ISO standards for quality & safety

✅ 5. Custom Branding with Security

Their in-house R&D and design team creates labels that are brand identity-oriented, along with anti-counterfeit features.

Real-World Impact: How Veritech Has Helped Brands

• One Ayurvedic personal care brand witnessed a 65% reduction in duplicate product complaints following the implementation of Veritech’s hologram labels.

• One pan-India food brand incorporated smart QR codes on packs and noticed 34% increase in customer retention in Tier 2 and 3 cities.

• One baby nutrition firm noticed a 22% increase in repeat buys, due to tamper-evident and interactive labeling.

Conclusion

In an environment where brand harm from counterfeiting can occur overnight, product labels are your best line of protection and your most immediate line to consumer trust.

Veritech’s secure labeling solutions bring together innovation, regulation, and customization to ensure that each unit your brand sells is safe, genuine, and trusted. For FMCG players seeking to expand sustainably and ethically in India, collaboration with Veritech is not merely a choice — it’s inevitable.

Sources of Data:

• ASPA Global – Annual Reports
• Nielsen FMCG India Reports
• IBEF FMCG Sector India
• FSSAI Packaging & Labelling Guidelines