The Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market size is forecasted to reach US$ 111.6 billion by 2027, after growing at a CAGR of 15.8% during the forecast period 2022-2027. The counterfeiting malpractice has been increasing rapidly and has become a matter of concern for several original cosmetics and pharmaceutical manufacturers all around the world. Hence, a wide range of anti-counterfeit technologies are being adopted worldwide in order to prevent the practice of counterfeiting in the pharmaceuticals and cosmetics industries. Some of the common technologies include holograms, barcodes, mass serialization, tamper evidence technology, radio frequency identification (RFID), and more. European countries sold the highest amount of exported beauty and skincare goods such as lotion bottles, mascara tubes, creams, foundation, and more, during 2020 with shipments valued at US$ 26.7 billion, which indicates around 44% of the global total. This is followed by Asian exporters with related shipments at 43%, and North America by 10.7%. Such increasing demand of cosmetics products in multiple regions across the world is expected to increase the demand for anti-counterfeit packaging of these cosmetic products, in order to maintain the brand’s authenticity and protect the consumers from using fake or duplicate products. An increase in demand from the pharmaceuticals and cosmetics industries acts as the major driver for the market. On the other hand, high costs associated with anti-counterfeit technology systems is most likely to confine the market and hinder its growth.
COVID-19 Impact
There is no doubt that the COVID-19 lockdown has impacted the anti-counterfeit cosmetics packaging industry too. Strict lockdowns all over the world interrupted the entire supply and trade of raw materials, which in turn, resulted in slow developments, and manufacturing from the cosmetics & skincare industry. However, a slow recovery in new cosmetics, and skincare production has been witnessed across many countries around the world since the end of 2020. According to recent research published on The Business Line, India reported a growth of around 20% on annual retail sales of cosmetics and other skincare products during the fourth quarter of 2020 and is expected to grow in the upcoming years. In this way, a slow and steady increase in production activities from the cosmetics & skincare industry is expected to increase the demand for anti-counterfeit packaging of such cosmetic products using technologies such as holograms, barcodes, mass serialization, tamper evidence technology, radio frequency identification (RFID), and more, in order to maintain the brand’s authenticity and protect the consumers from using fake or duplicate products. All of these factors have led to the growth of the market and it is expected to rise in the upcoming years as well.
Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market Report Coverage
The report: “Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Industry.
By Technology: Holograms, Barcodes, Forensic Techniques, Mass Serialization, Tamper Evidence Technology, Radio Frequency Identification (RFID), Ink and Dyes, Watermarks, Taggants, Sealing Tapes, Others.
By Application: Pharmaceuticals, Cosmetics & Personal Care.
By Geography: North America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa).
Key Takeaways
Radio Frequency Identification (RFID) technology in Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market is expected to see the fastest growth, especially during the forecast period. Its wide range of characteristics and advantages made it stand out in comparison to other types of anti-counterfeit packaging technologies in the market.
Cosmetics application in Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market is expected to see the fastest growth, owing to the increasing demand for anti-counterfeit packaging in the cosmetics industry.
Asia-Pacific dominated the Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market in 2021, owing to its increasing demand from the cosmetic and pharmaceutical sectors of the region. For instance, Asia-Pacific sold a significant amount of exported beauty and skincare goods such as lotion bottles, mascara tubes, creams, foundation, and more, during 2020 with shipments valued at US$ 11.5 billion, which indicates around 43% of the global total.
Figure: Asia-Pacific Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market Revenue, 2021-2027 (US$ Billion)
Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market Revenue
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Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market Segment Analysis – By Technology
Radio Frequency Identification (RFID) technology held a significant share in the Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market in 2021, owing to its increasing demand for anti-counterfeit packaging of pharmaceuticals and cosmetics due to the benefits they provide. RFID technology provides several benefits in comparison to holograms, mass serialization, tamper evidence technology, barcodes, and other types of anti-counterfeit technologies such as real-time analytics and store KPIs, easy management of shelf-life of the products, increased brand loyalty, and operational efficiencies for in-store processes. Moreover, RFID technology also allows inventory visibility along the entire supply chain and superior customer service quality. Hence, all of these benefits of RFID technology are driving its demand over other types of anti-counterfeit technologies.
Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market Segment Analysis – By Application
The Cosmetics application held the largest share in the Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market in 2021 and is expected to grow at a CAGR of 16% between 2022 and 2027, owing to its increasing demand for anti-counterfeit packaging for cosmetics products such as lotion bottles, mascara tubes, creams, foundation, and more. There is an increase in demand for the production of cosmetics, and skincare products, owing to an increase in awareness regarding personal grooming across the world. For instance, according to a study published on Fashion Network, skincare and sun care products produced an average annual growth of 5.6% in 2020. Furthermore, countries like France, Singapore, South Korea, and the US sold some of the largest amounts of exported beauty and skincare goods during 2020 with shipments valued at US$ 9 billion, US$ 6.2 billion, US$ 6.1 billion, and US$ 5.1 billion respectively. Since anti-counterfeit packaging is primarily used in cosmetics products in order to maintain the brand’s authenticity and protect the consumers from using fake or duplicate products, this will most likely drive the market growth during the forecast period.
Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market Segment Analysis – By Geography
The Asia-Pacific held the largest share in the Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market in 2021 up to 30%. The consumption of Anti-counterfeit Pharmaceuticals and Cosmetics Packaging is particularly high in this region due to its increasing demand from the cosmetic and medical sectors of the region. For instance, a recent study published by the Indian Ministry of Economy and Industry stated that the beauty and personal care industry in the country reached up to US$ 10 billion in 2021, and it is most likely to grow by around 6% in the upcoming years. Likewise, Shiseido, a leading cosmetics and beauty brand in Japan, published a report which stated that the net sales of the company based on cosmetics and personal care products reached up to 745.4 billion yen (US$ 6.6 billion) during the fourth quarter of 2021, and it is expected to rise in the upcoming years as well. According to a recent article published on Vogue, multiple globally reputed beauty brands like Glossier, Ceremonia, Tata Harper, Dermalogica, and more, launched new cosmetics and skincare products in August 2021.
Furthermore, recent reports from India Brand Equity Foundation (IBEF) show that the Indian pharmaceutical sector supplies over 50% of the global demand for various vaccines, 40% of the generic demand for the US, and 25% of all medicines for the UK during the ongoing COVID-19 pandemic.
In this way, an increase in the production of cosmetics and pharmaceutical products will also increase the demand for anti-counterfeit packaging using technologies such as holograms, barcodes, mass serialization, tamper evidence technology, radio frequency identification (RFID), and more, in order to maintain the brand’s authenticity and protect the consumers from using fake or duplicate products. All of these factors are expected to boost the market growth in the upcoming years.
Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market Drivers
An increase in demand for cosmetics and personal care products is most likely to increase demand for the product
Anti-counterfeit packaging is commonly used in moisturizing creams and lotion bottles, mascara tubes, lipsticks, shampoos, and perfumes in order to maintain the brand’s authenticity and protect the consumers from using fake or duplicate products. According to a recent study published on Redseer, the Indian beauty and personal care sector holds a major share of 75% and is expected to increase by 9% by 2022, which includes daily required personal care products such as shampoos, soaps, deodorants, shaving kits, hand cleaners and many more. Likewise, according to a recent article published on the Vouge in 2021, 10 new beauty products are to be launched from multiple leading brands across the world such as Becca, Indya, Forrest Essentials, Jimmy Coo, Colorbar, Wow Skin, Clinique, MyGlamm, and more. Hence, increased demand for cosmetics and personal care products also increases the demand for anti-counterfeit packaging of these products, thus, resulting in the growth of the market in the upcoming years.
An increase in demand for medical drugs and medicines is likely to increase demand for the product
According to a recent study published on JAMA Network, there has been an increase in demand for drugs from public hospitals globally in comparison to the pre-COVID-19 period. It states that drugs like Azithromycin, Hydroxychloroquine, Corticosteroids, and Heparin have increased by 11.45%, 6.14%, 24.68%, and 49.05% respectively. Furthermore, according to the data on therapeutic drug use in the U.S. published by National Centre for Health Statistics, the number of drugs that were ordered and provided through physician office visits reached around 2.9 billion, and the number of drugs that were given or prescribed through hospital emergency department visits reached around 336 million in 2020.
With an increasing demand for medical drugs and medicines, the demand for anti-counterfeit packaging of these medicines will also increase significantly, thus, leading to market growth during the forecast period.
Anti-counterfeit Pharmaceuticals and Cosmetics Packaging Market Challenges
High costs associated with anti-counterfeit technology systems can cause an obstruction to the market growth
Many companies across the world are becoming more aware of the problems associated with counterfeiting. It is of utmost importance for companies to make sure that their trademarks are protected by effectively implementing anti-counterfeiting technologies in order to deal with the threat. However, high initial setup and innovation costs are required during the production of anti-counterfeit packaging, which discourages both new companies and potential consumers from fully accepting anti-counterfeit solutions. This, in turn, may confine the growth of the market.