Anti-counterfeit Cosmetic Packaging Market

2020 Analysis and Review: Anti-counterfeit Cosmetic Packaging Market by Technology – RFID, Hologram, Mass Encoding, et al for 2020-2027

Introduction

Counterfeiting remains a longstanding challenge for global cosmetics industry. The market is flooded with fake cosmetics made from unscrupulous ingredients which may adversely impact the skin. This has necessitated investment in counterfeit product detection technologies.

Various innovative technologies have yielded credible results, substantially reducing cosmetics counterfeiting. Projections for the anti-counterfeit cosmetic packaging market remain strong in spite of COVID-19, with a new study published by Future Market Insights estimating 8.9% CAGR through 2027.

High Penetration of Duplicate Products

The market for fake and spurious cosmetics has expanded its tentacles to a very large extent. Several dubious companies even sell duplicates of so-called ‘imported’ cosmetics, often at highly discounted prices. This often entraps consumers into purchasing these products who then experience problems upon application.

Rigorous Government Legislations

In order to stem the influx of fake cosmetics, governments are implementing strict legislations and penalties against unauthorized producers and manufacturers. The U.S Food & Drug Administration, Cosmetics Europe and the Bureau of Indian Standards (BIS) have played pivotal roles in tackling this problem.

For instance, the Federal Food, Drug and Cosmetic Act (FD&C Act) imposes strict penalties for misbranding cosmetics. Provisions for the same are listed in Section 362 of the Act.

Likewise, the Drugs and Cosmetics Act 1940 empowers government authorities to seize and confiscate any adulterated cosmetic in India.

Such strict regulations are broadening the scope of anti-counterfeit packaging around the world, with manufacturers increasing the spending on fake cosmetics detection solutions during the packaging process.

Smart Packaging Making Inroads

Anti-counterfeit cosmetic packaging manufacturers are incorporating smart technology solutions to better differentiate between authentic and dubious cosmetic products. Approaches such as RFIDs and security seals are possible solutions to combat the global counterfeiting problem.

There is heightened risk of possible tampering with the packaging of cosmetics while in transit. Therefore, e-commerce giants are deploying smart solutions to detect possible mishandling of the package.

Moreover, these tools also help gauge product authenticity before dispatch, enabling them to remove the product if found to be unscrupulous.

Grey Areas within the Supply Chain

The global cosmetics industry consists of a highly complex and diverse supply chain. A robust network of raw material suppliers, manufacturers, distributors and retailers creates gaps that can be exploited. Between ingredient suppliers and end-product suppliers, there is a constant risk of product adulteration.

Likewise, there is the risk of tampering or theft at the confluence of manufacturers and distributors. Lastly, between the wholesaler and retailer, diversion or simulation is not uncommon.

To overcome these hurdles, anti-counterfeit packaging manufacturers incorporate blockchain technology, smart seals and luminescence packaging.

High Implementation Costs to Restrain Growth

Sophisticated counterfeit detection technologies involve considerable expenditure, comprising a massive proportion of organizational budgets.

A security system in itself does not completely address the problem, but rather facilitates easier detection. Hence, vendors need to constantly upgrade their apparatus which is a costly affair.

Small-scale manufacturers are especially at the receiving end, as their scale of operations are not large enough.

Due to limited market penetration, these vendors have significantly lesser profit margins and revenue inflow, making them reluctant to invest in such advanced detection solutions.

Region-wise Assessment

Europe Anti-counterfeit Cosmetic Packaging Market

Europe is likely to be the largest anti-counterfeit cosmetic packaging market, accounting for nearly 30% of the revenue by 2027

High instances of cosmetics fraud is driving growth. Between 2017 and 2018, over 2 million duplicate body care products were sold throughout Europe.

Besides consumer dissatisfaction, the counterfeit cosmetics economy generates broader social evils such as child labor and trafficking. Concerned by this, regulatory authorities have established strict legal provisions to penalize entities engaged in this practice.

Players such as SnapDragon have immensely helped curb the problem of counterfeit goods in the European market. The company’s Swoop technology is capable of isolating and eliminating counterfeit product links in as little as under five minutes across major online retail platforms.

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North America Anti-counterfeit Cosmetic Packaging Market

North America is the 2nd largest market, expected to surpass US$ 6 Bn by 2027. The cosmetics and personal care business is highly across the United States.

The U.S. Customs and Border Protection seized over 2,000 shipments of counterfeit cosmetics worth US$ 1.4 billion in 2015. The damage inflicted by mislabelling and misbranding cosmetic products has been colossal. Hence, authorities such as the FDA are emphasizing on anti-counterfeit packaging solutions.

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Asia Pacific Anti-counterfeit Cosmetic Packaging Market

The beauty, cosmetics & personal care industry is booming across Asia-Pacific. India & China are considered the frontrunners of the Asian beauty industry.

Demand for cosmetics is growing due to exposure to global trends, rising disposable incomes and growing prevalence of working women.

While the region looks immensely promising, there is also concern over fake cosmetics infiltration. These products are convincingly exact replicas of the original products, making it difficult to detect. This has led to huge losses for leading cosmetics manufacturers.

To combat this, players are investing in smart and technologically advanced anti-counterfeit packaging solutions. The region is anticipated to grow at a compounded rate exceeding 9% from 2020-2027.

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Category-wise Insights

Bottles & Tubes: Preferred Packaging Formats

By packaging format, bottles shall comprise over 45% of the revenue share through 2027. Widespread adoption for marketing cosmetic and pharmaceutical formulations due to their consumer friendly nature is likely to pivot growth.

Tubes are the 2nd most widely employed formats, owing to extensive adoption in food & beverage packaging. A robust CAGR of 9.6% is projected for the 2020-2027 assessment.

PET Plastics Hold Sway

Over half of the anti-counterfeit cosmetic packaging solutions are employed in securing PET plastic materials. PET plastics are highly robust and user-friendly, thus accelerating the need to protect them from tampering.

Paperboard packaging protection solutions are acquiring momentum, expanding at over 9% CAGR. Demand for sustainable environmental-friendly packaging is stimulating growth in this segment.

Haircare to be Key Application Area

Globally, sales of haircare products are swelling, owing to increased awareness regarding hair hygiene. Products such as shampoos and conditioners are highly vulnerable to adulteration or tampering, thus heightening the need to package them securely. Thus, haircare shall generate nearly a quarter of the revenue share by 2027.

Skincare is following close behind, owing to rising prevalence of skin disorders such as eczema, acne, psoriasis and melanoma. These conditions require constant attention, thus increasing demand for skin based cosmetics. Over 100 billion units of skincare anti-counterfeit packaging products will be sold by 2027.

Anti-counterfeit packaging for food and beverage products is also gaining demand, as due to the pandemic, consumers are showing a high inclination toward original products.

RFID Most Preferred Technology

Radio Frequency Identification (RFID) tags are becoming popular tools for identifying spurious goods. Equipped with microchips, RFID tags offer a functionality which can be utilized for security purposes.

RFID-enabled packages have proven very useful in preventing fake cosmetics concentration in the global market.

Barcode scanning is also gaining momentum, expected to yield 70% revenue through 2027

Barcodes help track the entire supply chain of the product from the production process till the time it reaches the end-user, weeding out any possible anomalies using complex algorithms.

COVID-19’s Impact on the Anti-Counterfeit Cosmetic Packaging Market

The COVID-19 pandemic has altered consumer purchasing behaviour, with preference for contactless delivery taking precedence. Therefore, e-commerce channels are experiencing swelling business activity.

This has sustained the demand for cosmetics across prominent geographies. This consistency in cosmetics sales is propelling the anti-counterfeit cosmetic packaging market.

Demand for skincare products has especially increased multi-fold, with consumers becoming highly cautious about their health. Striving to avoid contact with the virus, they are utilizing skincare products to prevent any kind of surface level infection. Therefore, anti-counterfeit pharmaceuticals and cosmetics market is witnessing enhanced uptake.

Anti-Counterfeit Cosmetic Packaging- Market Structure

A combination of global and regional manufacturers shape the anti-counterfeit cosmetic packaging market growth. A list of some prominent players operating within the landscape is provided below*:

  • Avery Dennison Corporation
  • CCL Industries Inc.
  • Zebra Technologies Corporation
  • Honeywell International Inc.
  • OpSec Security Inc.
  • Uflex Limited
  • Label Makers Pty Ltd.
  • AlpVision SA
  • Authentix Inc.
  • Alien Technology Corp.
  • Abbey Labels

*This list is indicative- full details on the anti-counterfeit cosmetic packaging players is available upon request.

The aforementioned players rely on product launches and inclusion of advanced virtual technologies. Moreover, they also rely on strengthening regional distribution frameworks to penetrate lucrative markets.

In 2019, Alien Technology Corp. introduced the Higgs TM 9-inch memory IC, a next-generation RFID semiconductor integrated circuits. This device offers precise memory retention and read reliability under the most hostile conditions. Additionally, the system does not require additional input software.

In January 2020, CCL Industries Inc. acquired Ibertex Etiquetaje Industrial S.L.U. and Eti-Textil Maroc S.a.r.l. AU. The acquisition was worth approximately US$ 19.6 million. In March 2020, the company acquired Flexpol Sp. Z.o.o.

More recently, in June 2020, Fozzy Group, one of Ukraine’s largest grocery retailers, implemented Zebra Technology’s mobility solutions, including Android mobile touch computers, handheld scanners and software security.

Anti-Counterfeit Cosmetic Packaging Market Report

Attribute

Details

Forecast Period

2020-2027

Historical Data Available for

2015-2019

Market Analysis

US$ Mn for Value and Mn Units for Volume

Key Regions Covered

North America, Latin America, Europe, Asia-Pacific and Middle East & Africa

Key Countries Covered

U.S., Canada, Germany, U.K., France, Italy, Spain, Russia, Mexico, Brazil, China, India, ASEAN, GCC and South Africa

Key Segments Covered

Packaging Format, Technology, Material & Application

Key Companies Profiled

Avery Dennison Corporation, CCL Industries Inc., Zebra Technologies Corporation, Honeywell International Inc., OpSec Security Inc., Uflex Limited, Label Makers Pty Ltd., AlpVision SA, Authentix Inc., Alien Technology Corp., Abbey Labels, Tesa scribos GmbH, Impinj Inc., Applied DNA Sciences Inc., Labelink Flexibles Inc., Sicpa Holding SA, NovaVision Inc., Selinko, Cypheme Ltd. and Systech International.

Report Coverage

Market Overview, Demand Analysis, Market Background, COVID-19’s Impact, Segmental Analysis, Regional Profiling, Market Structure Analysis and Competition Analysis

Customization & Pricing

Available upon Request

Key questions answered in the report

  • How will anti-counterfeit cosmetic packaging market expand in the future?

    As per FMI’s analysis, the anti-counterfeit cosmetic packaging is expected to embark on a strong growth trajectory, registering a value CAGR worth 8.9% from 2020-2027. It is likely to reach nearly US$ 50 billion by the end of the said forecast

  • What drives the anti-counterfeit cosmetic packaging market growth?

    A booming cosmetic and personal care industry and the subsequent rise in the marketing of inferior quality duplicate products is primarily steering growth. Additionally, stringent regulatory frameworks implemented to curb this menace is also stimulating expansion

  • What is restraining the said growth prospects?

    Swelling investment costs with regard to the establishment of sophisticated anti-counterfeit solutions is limiting uptake across small and medium-sized manufacturers. This is likely to concentrate growth only within large-scale enterprises

  • Which is the most promising anti-counterfeit cosmetic packaging market?

    Asia-Pacific is expected to grow the fastest, attributed to a prolific expansion of the beauty, cosmetics & personal care industry. India and China are touted to be potential revenue engines through 2027

  • What is COVID-19’s impact on the anti-counterfeit cosmetic packaging market?

    The COVID-19 pandemic is expected to impel the anti-counterfeit cosmetic packaging market growth, driven by enhancing sales of key product categories such as skincare through e-commerce channels. The overall outlook for the market remains optimistic throughout the pandemic’s duration

  • Which are the prominent anti-counterfeit cosmetic packaging vendors?

    Prominent players in the global anti-counterfeit cosmetic packaging market are Avery Dennison Corporation, CCL Industries Inc., Zebra Technologies Corporation, Honeywell International Inc., OpSec Security Inc., Uflex Limited, Label Makers Pty Ltd., AlpVision SA, Authentix Inc., Alien Technology Corp. and Abbey Labels among others.

Enquiry before Buying

  • Is the anti-counterfeit cosmetic packaging research conducted by Future Market Insights?

    Yes, the anti-counterfeit cosmetic packaging market report has been conducted by expert analysts of Future Market Insights through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to the research analyst

  • What research methodology is followed by FMI?

    FMI follows a methodology that encompasses the demand side assessment of the market, and triangulates the same through a supply side analysis. This methodology is based on use of standard market structure, methods and definitions.

  • Who are the respondents for primary research?

    FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

  • Is a sample of this report available for evaluation?

    Yes, you can request a sample and it will be sent to you through an email.

  • How can I buy this report?

    FMI provides a secure online payment system to buy report seamlessly. You can buy the report securely and safely.

Key Segments

Technology

  • RFID
  • Security Ink & Printing
  • Security Seals
  • Hologram
  • Mass Encoding
  • Barcode
  • Digital Encryption & Serialization

Packaging Format

  • Bottles
  • Jars
  • Tubes
  • Sachets
  • Pumps & Dispensers
  • Others

Material

  • Glass
  • Paperboard
  • Metal
  • Plastic
  • Polyethylene (PE)
  • Polypropylene (PP)
  • Polyethylene Terephthalate (PET)
  • Others

Application

  • Skincare
  • Hair care
  • Makeup
  • Fragrance
  • Nail care

Region

  • North America (U.S & Canada)
  • Latin America (Brazil, Mexico, Argentina & Rest of Latin America)
  • Europe (Germany, Italy, France, U.K., Spain, BENELUX, Nordics, Russia, Poland & Rest of Europe)
  • Asia Pacific (China, India, Japan, ASEAN, Australia & New Zealand and Rest of APAC)
  • Middle East and Africa (GCC, South Africa, North Africa and Rest of MEA)

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