In 2019, counterfeit goods accounted for 3.3% of the global retail sales value, as per the Organisation for Economic Co-operation and Development (OECD). In 2007, the total sales value of counterfeit goods was $250 billion, which increased massively to $461 billion in 2016! Counterfeiting not only includes manufacturing cheap copies of branded products, but also copying the labeling and packaging of the originals. As a result, P&S Intelligence expects the anti-counterfeit packaging market value to increase from $114.4 billion in 2017 to $208.3 billion by 2023, at a 10.9% CAGR between 2018 and 2023.
With the growing trade of counterfeits, companies manufacturing the originals are taking steps to tackle this problem, as it not only affects their brand image and revenue generation, but could also be hazardous to human health, such as in case of fake food, personal care, cosmetic and pharmaceutical products. In developing countries, where the laws are either weak or not properly implemented, it is easy to produce counterfeit goods. As such products are only meant for profits and not brand reputation building, low-cost labor and manufacturing techniques and almost no research and development (R&D) are used to produce them.
Hence, with the strengthening of anti-counterfeit laws by governments and international trade bodies, the demand for advanced packaging solutions will only grow.
Source: P&S Intelligence