Security Holograms Market

Key Points Covered in Security Holograms Market Study

• Market Estimates and Forecast 2015-2031
• Key Drivers and Restraints Impacting Market Growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Security Holograms Market and How to Navigate
• Recommendation on Key Winning Strategies

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2015-2020 Security Holograms Market Outlook Compared to 2021-2031 Forecast

Majorly driven by the rising demand for safety and authentication among the end users to avoid counterfeiting across the globe, the global market for security holograms is anticipated to rise at 5.3% CAGR from 2021 to 2031 in comparison to the 2.9% CAGR registered during 2015 to 2020. 

Security holograms are labels with a hologram printed on them which are made up of plastic. The security holograms are used in packaging, apparel, currency, passport, documents, and others.

Security holograms are majorly preferred to prevent counterfeiting activities and to safeguard the authenticity of any product or brand against counterfeiting. The majority of the demand for security holograms comes from documents, passports, and packaging domains.

The increasing use of online platforms during COVID-19 for selling as well as purchasing products has propelled the demand for security holograms. The sales of counterfeit products increased across online platforms which required brands to offer solutions to prove the authenticity of their products to consumers and protect them against spending on cheaper knock-offs.

On the back of this factor, the shipment of security holograms increased considerably. Also, strict regulations implemented by governments to adopt anti-counterfeit packaging has fuelled the demand for security holograms within the packaging industry.

Security holograms can be customized as per the requirement of the end users. Several market players are focusing on innovations to woo their customers. For instance, some in the food sector developed edible security holograms to ensure food safety and security.

The rising demand for anti-counterfeit devices and increasing awareness among customers regarding counterfeit products will boost the market for security holograms across the globe.

How is the Demand for Anti-Counterfeiting Devices Affecting Sales of Security Holograms?

The increasing demand for anti-counterfeiting devices to tackle the threat of counterfeiting is the sales of security holograms. According to ‘The International Hologram Manufacturers Association’ (IHMA), hair care and cosmetic brands are hit harder due to the increase in counterfeit products.

Counterfeit products have been increased by 56% in 2020 across 700 brands that are sold online. Moreover, skincare device companies have experienced an increased sale of counterfeit products by 40%.

An increase in online sales of fake products is fuelling the demand for security holograms. The sales of fake products affect the brand image and sale of the original products. Availability of counterfeit products not only hampers the name and value of the company but also cause harm to unsuspecting buyers.

Fake products also are sold at lower prices, which creates a pricing issue among original product manufacturers. On the back of these factors, end-use industries are using security holograms protect their products. 

Also, a high level of counterfeiting leads to a decrease in foreign investment, which generates demand for anti-counterfeiting devices such as security holograms. The players operating in holographic products are ramping up their investment in technologies to offer the best solution to brands and companies to protect their products against counterfeiting, which also is driving the market for security holograms.

How is Education Industry Contributing towards Amplifying Sales of Security Holograms?

The University Grants Commission (UGC) has requested all universities in India to provide security features such as security holograms and QR codes to the degree certificates to provide proper verification and to curb duplications. This also will help to bring uniformity across the overall education system.

The order from the UGC to provide security holograms to mark sheets and certificates among all the different courses will propel the demand for security holograms. This also will help to create a personal identity of a student, which can be used in other universities due to its uniformity. Every year, several students pass the course and receive certificates, which will create hefty demand for security holograms.

Various programs on by a university, and this variety of courses, enrolling several students will augment the sale of security holograms. An increase in the number of courses and students results in higher demand for security holograms. 

Consumer Awareness towards Usage of Genuine Products to Fuel Security Holograms Demand

The increasing usage of counterfeit products such as auto parts and accessories in vehicles has severely affected the automobile market. Also, counterfeiting vehicle parts might pose risk to the safety of passengers at large and it causes huge revenue loss for companies. Counterfeit auto parts also hamper brand credibility and do not meet the criteria of genuine manufacturing processes, which puts the passenger at risk.

On 8th June 2021, a digital campaign was launched by Hyundai Mobis on the anti-counterfeit day to create awareness among the customers to use genuine parts and accessories. The campaign was named Safety Mein Zero Compromise.

Many companies ensured that customers use only genuine parts and accessories by providing an MRP label with a five-step of security feature, which includes a hologram. The use of security features such as security holograms will help to avoid the use of non-genuine parts and accessories, saving companies from losses and passengers from risk.

Awareness created among customers will encourage the use of genuine products, which ultimately will increase the demand for security holograms as this hologram is used on the MRP label to identify the genuine product. Overall, the awareness among the customer for using genuine products will offer growth opportunities for the security hologram market.

Why are Edible Security Holograms are Trending in Food Industry?

According to the International Hologram Manufacturers Association (IHMA), the new edible hologram helps in boosting food safety along with preventing food fraud. Some of the leading players operating in the security hologram market are trying to develop edible security hologram, which is trending in the food industry as it provides security against counterfeit products along with ensuring food safety. 

The edible security hologram offers a safe and cost-effective way to print the important messages on the food packaging. Also, this works as food labelling. The edible security hologram adds value as it is considered a new approach adopted by manufacturers and producers.

Edible security hologram will work as a security measure to prove food authenticity and will help to easily identify fake products. Also, edible security hologram will offer a financial benefit to the company and will create brand enhancement.

Thus, the edible security hologram offers dual benefits such as security against fake products and ensures food safety, which attracts the food industry. Therefore, edible security holograms are trending in the food industry.

What Is the Impact of COVID-19 Pandemic on the Global Market for Security Holograms?

Amid COVID-19, the global market for security holograms experienced a drop in demand and sales due to various factors such as a slowdown in production activities, improper supply chain, disturbed logistic & transportation activities, imbalance in the supply of raw material, restriction on trade, and others. The COVID-19 crisis-affected major end-use industries across the globe including the packaging & apparel industry which ultimately had adverse impact on the global market for security holograms.

Slowly, the development of vaccines and the requirement for vaccination certificates or cards to verify whether an individual is vaccinated or not will help the authority to allow those individuals to travel. The focus on preventing duplicate certificates and fake vaccines & medicines supplement, the sales of security holograms across the world.

Moreover, with the withdrawal of lockdown restrictions, end-use industries have begun operations at their full efficiency, which will increase the sales of security holograms as end-use industries wish to protect their product from counterfeiting and to gain brand creditability. This is expected to bode well for the global market

Country-wise Insights

Why is the U.S. Considered the Most Lucrative Market for Security Holograms?

North America is expected to remain the top region for the global market for security holograms and it is estimated to hold 26.7% of the global market by the end of 2031. According to the study, the U.S. is projected to hold nearly 80% of the total North America market for security holograms in the next years.

The United States is projected to be the most attractive market for security holograms due to the increasing need for anti-counterfeit devices to prevent the sales of fake medicines and other products.

According to Organisation for Economic Co-operation and Development (OECD), the U.S. Customs and Border Protection (US CBP) reported fake COVID-19 tests and facemasks & hand sanitizers. The rising fake medicines and medical equipment fuels the demand for security holograms in the United States.

Why is the Demand for Security Holograms increasing in Germany?

Germany holds a considerable share in the market for security holograms in Europe. Germany is anticipated to account for around 1/5th sales in the Europe market along with offering an incremental opportunity of US$ 120.2 Mn during the forecasted period. 

The demand for packaging security and authentication devices is rising in Germany to ensure quality of products by checking the smuggling and distribution of illicit products. Products without security holograms can be seized and destroyed to save the anti-counterfeit products. Overall, the increasing need for anti-counterfeit packaging is fuelling the demand for security holograms in Germany.

How will China Drive the Market for Security Holograms?

The market for security holograms in China is expected to expand at a CAGR of 7.2% during 2021-2031. China is estimated to hold the leading share in the market for security holograms in East Asia. It is expected to account for around 72% of the sales registered in East Asia. 

Stringent regulations implemented by governments and the war on counterfeiting by the national government are anticipated to fuel the demand for security holograms in China. Security holograms will be majorly preferred as a part of protecting the brand from counterfeiting and tackling the problems & challenges faced by the brands selling anti-counterfeit products.

How will India Contribute Towards Demand for Security Holograms?

In South Asia, India will hold a market share of more than 40% by the end of 2031 in the market for security holograms. The increasing demand for security features for certificates issued by the University Grand Commission which will create growth opportunity for security holograms market in India.

The University Grants Commission (UGC), ordered all the universities and higher education institutes to add the security features such as security holograms and QR codes to all the degree certificates and mark sheets to provide unique identification to each individual and to maintain uniformity across the overall higher education system in India. This factor is anticipated to create a market growth opportunity for security holograms in India.

Category-wise Insights

Why are 2D/3D Segment and Electron-beam Segment considered to be the Most Lucrative?

Based on the product type, the 2D/3D segment followed by the electron-beam segment holds the leading share in the market. The targeted segments are anticipated to hold more than 3/5th of the market by the end of 2031.

Both segments collectively is projected to offer an incremental opportunity of US$ 2.5 Bn during the forecast period. The 2D/3D segment and electron-beam segment are estimated to expand at a CAGR of 5.8% and 6.8% respectively during 2021-2031. The reason behind the same is rising demand for the technologically advanced product along with focus on offering visually attractive products.

Prices for security holograms differ based on different types. Prices of electron-beam segment is the highest among the other types as it is made with using advanced technology. Also, the prices vary based on availability and prices of raw material along with the cost of production.

The cost of security holograms is highest in Europe, whereas North America stands in the second position in terms of high prices. Latin America has the third-highest price for security holograms globally. Besides this, South Asia has the lowest price for security holograms due to the easy availability of raw material as well as the low production & labor cost.

Who are the Leading End Users of Security Holograms?

In terms of end use, the document segments followed by passport and packaging segments are anticipated to hold more than 70% of the market in the next five years. The reason behind the same is the rising need for curbing duplication certification along with providing proper modes of authentication to facilitate easy verification.

These segments are estimated to create incremental opportunity of US$ 2.8 Bn during 2021-2031. The document segment, passport segment, and packaging segment are projected to expand at a CAGR of 6.3%, 5.3%, and 5.8% respectively during the forecast period.

Which Material is preferred by the Manufacturers to Produce Security Holograms?

By material, polypropylene (PP) segment is estimated to be most preferred by the security holograms manufacturers. The segment is anticipated to expand 1.9x times the current market value during the forecasted period along with offering an incremental opportunity of US$ 1.4 Bn.

Competitive Landscape

The key players manufacturing security holograms are trying to focus on innovation. Considering this, there is high focus on new product launches and adoption of technological advancements to cater to the demand from various industries. Also, the players are expanding their production capacity to meet the demand for security holograms across the globe.

• In February 2021, De La Rue plc announced the launch of DLR Validate™, a smartphone-enabled hologram validation tool.
• In January 2021, Opsec Security launched OpSec® KeyCode, a first-of-its-kind holographic two-factor authentication label that protects brands from counterfeiting.
• In December 2020, De La Rue plc launched NEXUS™, a new kind of security feature.
• In May 2019, Opsec Security announced a strategic partnership with Maxim Label and Packaging to extend the reach of brand protection throughout Asia.

Scope of Report

Key Questions Answered in the Report

• What is the current valuation of security holograms market?

  The market valuation of security holograms is expected to reach US$ 4.8 Bn by 2021.

• At what rate did the global market for security holograms expand in the last 5 years?

  The global market for security holograms exhibited steady growth at 2.9% CAGR in the last five years from 2015 to 2020.

• What is the demand outlook for security holograms market?

  The global market for security holograms will register increase in demand after the negative impact of COVID-19 in the initial stage leading to decrease in sales in 2020. According to FMI, the market will expand at a CAGR of 5.3% during 2021 and 2031.

• What are the key trends shaping the global market for security holograms?

  Manufactures of security holograms offer customization which attracts consumers from diverse industries. Also, they are trying to focus on innovation by adopting advanced technologies. The key trend prevailing in the security holograms market is the development of edible security holograms which is expected boost demand in the food industry.

• What are the key factors driving sales of security holograms?

  The rising demand for anti-counterfeit devices in order to ensure security and authentication drives the demand for security holograms. Moreover, the introduction of new identity cards will create opportunities for sales of security holograms.

• What is the market outlook for security holograms in North America?

  North America holds the leading share in the global market for security holograms. The North America market is anticipated to hold around 26% of the market share in 2031.

• What is the cumulative share of the top seven companies in the global market for security holograms?

  The top seven companies operating in the global market for security holograms are De La Rue plc, UPM Raflatac, Inc., K Laser Technology (USA) Co., Ltd., Opsec Security Ltd., Uflex Ltd., Security Hologram, LLC, and The Griff Network. These players are estimated to hold nearly 20% to 25% share in the global market for security holograms.

• At what rate will the global market for security holograms grow in South Asia?

  As per the FMI analysis the global market for security holograms in South Asia is projected to exhibit a CAGR of 7.1 % between 2021 and 2031.

• Which countries exhibit high demand for security holograms?

  The U.S., China, India, Germany, and Canada are among the leading markets for security holograms, exhibiting consistently high demand.

• At what rate will the China security holograms market grow?

  As per FMI, the China security holograms market is expected to rise at 7.2% CAGR between 2021 and 2031

Security Holograms Market by Category

By Product Type:

• 2D/3D
• Dot Matrix
• Flip Flop
• Electron-beam

By Material:

• Polypropylene (PP)
• Polyvinyl Chloride (PVC)
• Polyethylene Terephthalate (PET)

By End Use:

• Packaging
• Apparel
• Currency
• Passport
• Documents
• Other (Credit Cards, Tickets etc.)

By Region:

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East and Africa (MEA)