Driven By New Technology, Global Brand Protection Market To Exceed US $11.4B By 2014, According To Pira International
Led by innovations in RFID, security printing and 2D bar code technology, the global market for brand protection is expected to touch US $6.7B in 2009. Witnessing a healthy CAGR of 11.1%, this market is projected to reach a value of over US $11.4B by 2014, according to a new study by Pira International.
Based on primary research and expert analysis, The Future of Anti-Counterfeiting, Brand Protection and Security Packaging V breaks down the market by technologies, end-use segment and geographic markets, with five-year forecasts to 2014. Importantly, the study explains the key drivers and trends shaping the brand protection market and also provides an up-to-date overview of the competitive landscape and the major anti-counterfeiting organisations like the IACC, CIB, IIPA and WCO.
The brand protection market is essentially the incorporation of tamper-evident, anti-counterfeiting, anti-theft or track and trace technology into a product or package to prevent or limit damage from brand attacks. Attacks occur through product counterfeiting, parallel trading, product tampering and product theft. What is significant to note here is that the brand protection market value is just a fraction of the total losses that are actually incurred due to these threats.
The principal technologies used for brand protection are tamper-evident closures and seals, authentication devices, track and trace systems and anti-theft devices. Tamper-evident closures and seals consist of film wrap, shrink wrap, stretch sleeves, blister packs, perforated labels and seals, tear-tapes, and super-strong adhesives and frangible films. Authentication devices include holograms, security inks, security threads and fibres, watermarks and micro-printing. Track and trace systems on the other hand incorporate linear and 2D bar codes, Datamatrix, sequential numbering, algorithmic codes and encrypted data, while anti-theft devices include electronic article surveillance (EAS) tags, acoustic magnetic (AM) labels, radio frequency (RF) labels, and chip-based and ink-based RFID.
Exploring brand protection technology markets by end-use, Pira International forecasts that in the 2009-2014 period, lower margin products such as food and beverages will experience a CAGR of 9.6%, while premium products such as cosmetics and healthcare will witness stronger CAGR growth of 11.3% and 12.6% respectively. In the same period, other consumer packaging is also expected to grow at 12.5%, while other (industrial or bulk) packaging will see a CAGR of 12.8%.
RFID is expected to lead the technology sectors with CAGR growth of 26.9% in the next five years. Other technologies considered as a segment including 2D bar codes such as Datamatrix and QR codes, is projected to have 13.7 % growth. The CAGR for security printing is expected to be slightly higher at 14.6%. Together with substrates, inks and coatings this is expected to account for 60% of the total market. Witnessing a CAGR growth of 9.3%, holograms and DOVIDs are predicted to make up the remaining 22%, with some competition arising from new optical technologies such as micro-optical arrays.
Examining the brand protection market's geographical distribution, the study predicts that Asia will have the largest share in 2009 with 30.9%. North America and Europe will account for 25.8% and 24.1% respectively. Pira International goes on to predict that in the 2009-14 period, the Middle East will have the highest CAGR at 16%, followed by Asia with 15.1% and Eastern Europe with 13%. North America is already a sophisticated market in terms of brand protection technology adoption and should see CAGR of 7.4% over the same period. Western Europe and Australasia will achieve a CAGR of 7.7% each over the next five years.
About Pira International
Pira International – the worldwide authority on packaging, paper and print industry supply chains.
Established in 1930, Pira provides strategic and technical consulting, testing, intelligence and events to help clients gain market insights, identify opportunities, evaluate product performance and manage compliance.
SOURCE: Pira International