According to a new report by Allied Market Research, "Anti-counterfeit Packaging Market in Food and Pharmaceuticals - Technologies, Applications and Global Forecast through 2020," the global anti-counterfeit packaging market in food and pharmaceuticals is forecast to hit $142.7 billion by 2020, up from $57.4 billion in 2013, growing at 13.9% CAGR. Technological advancements and government initiatives to curb counterfeiting is expected to drive the market growth.
"Counterfeiting practices are rising for food and pharmaceutical products due to globalization of retail sector and dilution of supply chain. Anti-counterfeit packaging market in track and trace technology for product tracking is growing and expected to mature in next few years. Emergence of E-pedigree applications in pharmaceutical is changing the application of RFID technology from real time tracking to real time managing, say Allied Market Research analysts Debbie Shields and Roshan Deshmukh.
Anti-counterfeit measurements are taken by companies, so as to minimizing loss due to counterfeiting in-terms of revenue and loyalty. Cost is the significant factor responsible for counterfeiting. However, it is observed that drugs and food items that cost lower are mostly counterfeited mainly due to lower risk involved in terms of penalties. Anti counterfeit packaging is used in both over the counter and prescription based drugs. Increase in demand for over the counter drug, through internet, raises counterfeiting incidence. These threats can be minimized through implementation of RFID technology, which is collaborated with e-pedigree software.
Leading application of anti-counterfeit packaging includes pharmaceutical drugs, food products, electronic products, apparels etc. Ultra High Frequency RFID technology in collaboration with E-pedigree is providing real time tracking of products with inventory level management during supply chain. The global market for pharmaceutical and food anti-counterfeit packaging is braced by stringent government legislations assigned for specific regions. Pharmaceutical drugs packaging market was valued for $33.7 billion in 2013 and is expected to grow at 13.2% CAGR during 2013-2020. Similarly, surge in demand for packaged food is luring counterfeiters to duplicate the food products. The anti-counterfeit market for packaged food products was valued at $23.7 billion in 2013, is forecast to grow at a CAGR of 14.8% during 2013-2020.