The Allied Market Research report, titled: “Global Anti-Counterfeit Pharmaceutical and Cosmetics Market- 2014 – 2020” looks at the market with regards to trends, size, growth and opportunities and finds that the category is set to boom.
According the report, the researchers that compiled the data for the category believe that it is set to expand with a CAGR of 15.7% for the period 2015 – 2020.
What is really driving the category right now is hologram authentication technology, which was said to have comprised a little over half the market share in 2014, at 52%, driven by varied product offerings and economic pricing.
Track and trace technology set to dominate
However, the fastest growing segment amongst the RFID anti-counterfeit technologies is E-pedigree authentication, which the researchers predict will grow at a CAGR of 21.5% during the period 2015 – 2020.
The researchers believe that this significant growth will serve to see the role of the track and trace RFID technologies grow to a point where it will eclipse the dominance of the authentication technologies in the course of the next five years.
The researchers also indicate that, whereas the cost of the track and trace technologies and the complexity of the operational procedures may put some manufacturers off, a growing number of initiatives from industry trade associations is likely to further endorse adoption of the technology.
Take up is likely to be fastest in the pharmaceutical segment, buoyed by tougher regulations aimed at stamping out counterfeit medicines and drugs, but the risk that counterfeit products poses to the luxury cosmetics market is also a determining factor for growth in that segment.
Luxury cosmetic players
The counterfeiting of cosmetics products, particularly at the higher-end and luxury segments of the market has continued to be a significant issue, especially for manufacturers of prestige skin care and fragrance lines.
Counterfeit products are often formulated with inferior ingredients that can lead consumers to believe that the brand is offering inferior quality products, while also posing potential safety problems.
All this is fueling a growing interest in anti-counterfeiting measures that are seen to protect the brand’s integrity as well as providing added assurance for consumers.