Buoyant growth forecast for brand protection market

The world may be in the midst of a recession but the prospects for companies in the brand protection area look bright, according to a new study by Pira International.

The report, entitled The Future of Anti-Counterfeiting, Brand Protection and Security Packaging V, says that the market for these technologies was around $6.7bn in 2009 but will advance at a healthy 11 per cent compound annual growth rate (CAGR) to reach $11.4bn by 2014.

Pharmaceuticals and other healthcare sectors will put in some of the strongest growth over that period, with a CAGR of around 12.6 per cent, according to the report.

Interestingly, that rate outstrips the overall market for pharmaceutical packaging by some margin. Pira estimates that the global demand for pharmaceutical packaging will grow at a CAGR of 5.2 per cent to 2012, with countries such as China, India and Brazil driving the expansion of the market.

It notes that in pharma almost all product packaging is tamper-evident, and for brand protection purposes the growth will come from the adoption of "2D bar codes or similar technology that allows product authentication."

"The strongest growth drivers are standards and regulations on patient drug compliance, drug dispensing errors, drug counterfeiting and drug diversion," notes the report, which is priced at £3,500 (€3,950 or $5,600) and can be ordered here.

"A greater focus on these problems will expand growth opportunities for high-value-added containers, closures and accessories, especially blister packs, tamper-evident closures and RFID labels," it says.

Looking at the overall brand protection market - irrespective of industry category - Pira notes that radiofrequency identification (RFID) is expected to lead the technology sectors with CAGR growth of 26.9 per cent over the next five years, although that is from a low base as it currently accounts for just 2 per cent of the overall market.

A basket of 'other technologies' which includes 2D bar codes such as datamatrix and QR (Quick Response) codes is projected to have 13.7 per cent growth.

The CAGR for security printing is expected to be slightly higher at 14.6 per cent, and together with substrates, inks and coatings is expected to account for 60 per cent of the total market.

With a CAGR growth of 9.3 per cent, holograms and DOVIDs are predicted to make up the remaining 22 per cent, with some competition arising from new optical technologies such as micro-optical arrays.

The study predicts that Asia will have the largest share in 2009 with 30.9per cent. North America and Europe will account for 25.8 per cent and 24.1 per cent respectively.

Pira goes on to predict that in the 2009-14 timeframe, the Middle East will have the highest CAGR at 16 per cent, followed by Asia with 15.1 per cent and Eastern Europe with 13 per cent.

North America is already a sophisticated market in terms of brand protection technology adoption and should see CAGR of 7.4 per cent over the same period. Western Europe and Australasia will achieve a CAGR of 7.7 per cent each over the next five years, it says.