Reports & Data: Anti-counterfeit packaging market to reach USD 248.90 Billion by 2026

According to Reports & Data, the global anti-counterfeit packaging market is forecasted to reach a value of USD 248.90 billion by 2026. As per the report, the massive rise in globalization has increased the level of counterfeiting across the globe. Duplicate goods include jewellery, electronic items, apparels, medicines, tobacco products, liquor and much more. Due to this trend, secure packaging is witnessing high demand among different industries.

Anti-counterfeit packaging involves the action of assigning secure packaging to the product so as to minimize the incidents of counterfeiting and infringement. Currently, the market of fake products is growing across the globe at an alarming rate and manufacturers are finding it harder to counter the threat. Among the many sectors pharmaceutical is one of the worst-hit by counterfeits. Fake medicines include the proliferation of dangerous and illegal substance used in counterfeit drugs.

Organizations are using different anti-duplication packaging to counter the imitation and confirm the safety of items. Counterfeiting leads to a reduction in profits and loss in the brand image for the affected company.

In the year 2018, North America had the largest share at 31.4% in the anti-counterfeit packaging market. The report states that the high demand from healthcare products, electronics, food and beverages, and cosmetics is pushing the growth in this market. Moreover, awareness among consumers is leading to an increase in the demand for transparency which in turn is boosting traceability of the products. In order to cater to the rising demand, manufacturers are coming up with innovative technologies in equipment with specific functionalities for efficient identification and tracking of products.

Other key findings of the report:

  • Barcodes held the largest market share of 21.8% in the year 2018. The barcode is a series of numbers which, when decoded, identifies the product by date and place of manufacture. These codes are one-dimensional, and the information included in them is limited by the maximum available number of characters that can be scanned or printed at a time.
  • Overt Feature is forecasted to grow with the higher CAGR of 10.9% during the forecast period. This feature enables instant authentication of packaging via visual inspection by a layman. An optically variable feature like holographic devices within designs and color shift links are some of the most common and effective overt security features.
  • Counterfeit medicines in pharmaceutical are among the most lucrative sectors of the global trade. Fake drugs kill or harm millions across the globe and inflict some severe damage to the brand names of big pharmaceutical manufacturers. Lifesaving drugs are also included from the trade-in fake medicines. Healthcare & Pharmaceutical held the largest market share of 24.6% in the year 2018.
  • The Asia Pacific region is forecasted to grow with the highest CAGR of 10.7% during the forecast period, owing to the development of the anti-counterfeit packaging market in China and India. Increasing awareness among consumers has led consumers to check the product-related information before purchasing products, in turn, increasing the demand for anti-counterfeit packaging in this region.

Source: www.globenewswire.com

Pashmina products to get BIS certification against counterfeiting

In a recent development in Leh, Ladakh the Bureau of Indian Standards (BIS) has released a domestic standard for identification, marking and labeling of Pashmina products – to certify their purity.

“The move will help to prevent the counterfeiting of Pashmina products and will protect the interests of artisans and nomads who are responsible for the production of raw materials and textiles”, said Smriti Irani, Minister of Textiles.

The step will help in determining better prices for the goat-herding community in Ladakh and handloom artisans producing authentic Pashmina items which are at a disadvantage due to lot of poor marketing practices, as per an official release.

Currently, around 2,400 families are rearing 2.5 lakh Pashmina goats which are domesticated and reared by nomadic communities called the Changpa in the Changthang region of Greater Ladakh. Around 50 metric tonnes of finest grade Pashmina (12-15 microns) is produced in Ladakh.

The Ministry of Textiles is developing a proposal for funding ₹20 crore for a dehairing plant in Leh that will lead to the progress of the Pashmina sector in the region of Ladakh.

Source: fibre2fashion

Why counterfeiting diminishes the chances of foreign direct investment?

The world is a global village as there is a high interdependence of countries on each other in different fields. From world-wide-web to culture, technological innovation to trade, military alliances to transport there are many scenarios in which the world seems to function as a unified whole.

Among the above-mentioned aspects, trade and investment play an important role in the economic development of countries. Of late, Foreign Direct Investment (FDI) has become quite important for third world countries when it comes to their economic development. FDI impacts the economic growth of the host country (a country in which investment is done) through the transfer of new technologies, organization of human resources, increase in employment, linking of global markets, the rise of infrastructure and much more.

However, the rise of counterfeiting can damage the FDI prospects of a country and its potential to create valuable innovation centres. FDI is important for both advanced and emerging economies to increase their productivity and output. Lack of intellectual property rights and anti-counterfeiting measures diminish the chances of FDI. In India, the industries most impacted by lack of FDI due to counterfeiting include equipment manufacturing and pharmaceuticals.

The total reduction in FDI due to counterfeiting and piracy is quite harmful to aspects like employment, infrastructure and socio-economic development. Countries are sceptical of investing in prospecting countries with weak IP laws as it may lead to counterfeiting of their products, theft of their technologies, reduction in their profits and damage to the brand image.

With the implementation of stringent regulatory measures and anti-counterfeiting technologies, duplication can be prevented to a large extent which will further brighten the chances of foreign direct investment. For ensuring impeccable security against counterfeiting it is must that supply chains must also be secured. A comprehensive outlook towards anti-counterfeiting guarantees the economic development of a country.

If you require customized anti-duplication solutions for securing your products and supply chains, then call us on +91–785-785-7000 or mail us at connect@holostik.com

Counterfeiting on the global level-An overview

Counterfeiting or duplication is a growing problem across the world. It badly affects the government, businesses, and consumers. People across the world are suffering from the menace of duplicate products which is regularly authenticated by different reports and news coming from different parts of the world.

Market experts believe that the growing globalization is the main reason behind rampant duplication. They say that in order to increase their manufacturing capacity and hire cheap labor big companies shifted their base to developing and third world countries. However, the major problem in these areas was that of lack of anti-duplication regulation and poor IP laws.

This made the way for counterfeiters and they were easily able to steal technology to manufacture duplicate goods. With the passage of time, they became more organized and took counterfeiting on a much larger scale.

According to a report by OECD (Organisation for Economic Co-operation and Development) United States, Italy, France, Switzerland, Japan, and Germany are the hardest hit countries, with the majority (83%) of fake goods originating (not surprisingly) from China and Hong Kong. European brands are among the most impacted, with an estimated 5% of all goods imported into the European Union (EU) being fake. This represents as much as $118 billion.

With the growth and penetration of internet technology counterfeits are now being sold on different internet platforms. According to the International Trademark Association, “Criminals prefer to sell counterfeits on the Internet for many reasons. They can hide behind the anonymity of the Internet with the Dark Web even their IP addresses can be hidden. The Internet gives them the reach to sell to consumers globally-outside of the national limits of law enforcement.”

The global problem of counterfeiting must be addressed on multiple fronts with collaborative efforts of the government, industry players and anti-counterfeiting solution providers.

New invisible nano ink may help in preventing counterfeiting

Duplicating and counterfeiting of goods is a growing problem across the world. Different anti-counterfeiting measures like printing barcodes or holograms can prevent counterfeiting of products.

Now nanotechnology may provide a solution to get rid of the menace of counterfeiting. The technology depends on the changes that happen in nanoparticles when subjected to certain conditions. These changes can be easily identified but the technology is difficult to copy or replicate.

Recently, researchers at the Advanced Polymer and Nanomaterial Laboratory (APNL) Tezpur University have developed a new, light emitting nanocomposite-based ink that is not visible under light but can be detected when kept under an ultra-violet light. The ink is quite useful in preventing counterfeiting on paper and plastic.

Niranjan Karak, Group Leader of APNL said, “The nanocomposite has an intricate structure to prevent imitation. By dispersing it in organic solvents like xylene, it transforms into an ink that can be used to mark a label. The liquid appears pale-yellow under visible light and glows with a cyan tint when exposed to UV light of specific length.”

The performance of the ink was tested by writing a few letters on paper and plastic. It was found that the letters were not visible in daylight, whereas when kept under UV light, it glowed with a cyan hue.

For convenience the ink can be loaded into the refill of a sketch or gel pen and has a shelf life of up to ten years and degrades in a few months only under the action of soil microbes.

Source: thehindubusinessline

The link between counterfeiting and organized crime

International law enforcement and market experts have established a close link between counterfeiting and other forms of criminal activities. It has been found that the counterfeiting business helps criminals to fuel other illegal activities and vice-versa. EUROPOL (European Union Agency for Law Enforcement Cooperation) has even warned that counterfeiting is an increasingly attractive avenue for organized crime syndicates to diversify and increase their illicit businesses.

It has also been found that counterfeiters use similar routes and modus operandi to supply counterfeit goods as they do to smuggle drugs, firearms and human trafficking. Profits from other crimes and illicit activities also help in the production and distribution of counterfeit goods. Many reports from different countries have established the fact that profits from crimes like drug trafficking and other crimes were used to promote the business of counterfeiting and, similarly proceeds from the sale of duplicate goods were used to promote the criminal’s other illicit activities.

One of the main reasons why criminals choose counterfeiting over other criminal activities is due to its favourable ratio between potential profits and possible risks. According to Executive Director, UNODC (United Nations Office on Drugs and Crime) Yuri Fedotov, “In comparison to other crimes such as drug trafficking, the production and distribution of counterfeit goods present a low-risk/high-profit opportunity for criminals. Counterfeiting feeds money laundering activities and encourages corruption. There is also evidence of some involvement or overlap with drug trafficking and other serious crimes.”

As per trade, reports counterfeiting is now placed amongst the highest income sources for organized criminal activities. Counterfeiting or duplication also helps in money laundering by providing a platform through which criminal organization can invest the proceeds of their illicit activities. In a nutshell, organized crime syndicates use counterfeiting as a medium to optimize their other criminal activities.

Tank Road one of the hubs for counterfeit goods as per US authorities

In a recent development, US authorities have identified Tank Road in Delhi as one of the hubs for the sale of counterfeit goods and have asked the Indian government to take coordinated enforcement action. As per the US’ Notorious Markets List 33 online and 25 physical markets reportedly are breeding grounds for the sale of fake products. A US trade representative while commenting on the report said that Tank Road in Delhi remains on the list of popular places for the sale of counterfeit goods.

Fake products are further supplied from Tank Road to places such as Gaffar Market and Ajmal Khan road. The report states that the counterfeiting activity harms the American economy by undermining the innovation and IP rights of the rightful owners. An estimated 2.5% or nearly half a trillion dollars’ worth of global imports are counterfeit and pirated products.

The US trade representative also said that the wholesalers in the area operate without any fear and build their businesses over the years. The trade representative also urged to take sustained actions on the Tank road market located in Karol Bagh, previously listed markets and other non-listed markets as well.

The 2018 Notorious Markets List maintains its special focus on the distribution of pirated content and counterfeit goods online. This year, the list highlighted free trade zones and the role they may play in facilitating trade in counterfeit and pirated goods.

Source: (PTI) Deccan Herald

Counterfeit goods represent 3.3% of the world trade

According to the latest report by OECD and EU’s Intellectual Property Office the trade in counterfeit goods has increased rapidly over the last few years and now represent 3.3 per cent of the global trade.

The report titled as  ‘Trends in Trade in counterfeit and Pirated Goods’ states the value of imported counterfeit goods around the world in 2016 was valued at $509 billion which increased from $461 billion in the year 2013. For the EU, the trade in fake goods represented 6.8 per cent of imports from non-EU countries up from 5 per cent in 2013.

The trade in counterfeit goods which violate trademarks and copyrights can generate profits for organized crimes at the expense of companies and governments. Counterfeit items like medicines, auto parts, toys, food, cosmetic brands and electrical goods have many health and safety concerns.

As per the report, some of the most counterfeited goods confiscated in the year 2016 included footwear, clothing, leather goods, electrical equipment, watches, medical equipment, perfumes, toys, jewellery and pharmaceuticals. Officials also pointed out that there was an increase in counterfeit musical instruments and construction materials. A majority of the fake goods originate in China, United Arab Emirates, Turkey, Singapore, Thailand and India.

Source: sdcexec.com

Amazon takes measures to stop fake sellers

Over the past few years, there has been a rise of counterfeit products on the e-commerce platform which is worth $18 billion. Amidst this scenario, the e-commerce giant Amazon is taking necessary measures to clamp down on fake sellers and weed out potential duplicate products form its marketplace.

Amazon which considers India as one of the most important markets is witnessing a big number of verified sellers who are listing duplicate products across online marketplaces in the country. However, a top company executive said that Amazon was ready to take on the so-called bad actors.

Dharmesh Mehta Vice President for consumer and brand protection said that the rate which bad actors are attempting to fraud and abuse customers and sellers is definitely increasing much faster than the rate at which the business is growing.

One out of every five products sold on e-commerce platforms is counterfeit, as per a recent survey by LocalCircles.

The top e-commerce players including Flipkart, Amazon India, Snapdeal and ShopClues have lately received notices form Drug Controller General of India to remove the sellers on their platforms which were dealing with counterfeit cosmetic products.

For seller onboarding, Amazon has put in place machine learning models to detect potential risks of the seller’s account and check products and prices along with many other variables that fit the model. This helps Amazon eliminate unverified players at an early stage.

Source: Live Mint