Why Is Anti-Counterfeit Packaging Essential for Pharmaceutical Sector?

With the growing trade of counterfeits, companies manufacturing the originals are taking steps to tackle this problem, as it not only affects their brand image and revenue generation, but could also be hazardous to human health, such as in case of fake food, personal care, cosmetic and pharmaceutical products. In developing countries, where the laws are either weak or not properly implemented, it is easy to produce counterfeit goods. As such products are only meant for profits and not brand reputation building, low-cost labor and manufacturing techniques and almost no research and development (R&D) are used to produce them.

Moreover, they sell because they are cheaper than branded products, and with a large chunk of the population still not able to afford branded stuff, counterfeits have a strong hold. For instance, thousands of people flock to the Palika Bazaar of Delhi because it was and is still said to offer counterfeit goods at extremely low prices. To counter this problem, brands are using advanced packaging that has some hidden or easily visible form of identification, such as a hologram, mark, number, barcode, or quick-response (QR) code, so branded and counterfeits can be easily distinguished.

Such packaging not only helps stop the trade of counterfeits at numerous points along the supply chain, such as ports and logistics terminals, warehouses, customs checkpoints at airports, wholesale and retail shops, and street hawkers, but also aids in tracking the whereabouts of the original. There are four major types of anti-counterfeit packaging: track & trace, forensic, overt, and covert. Among these, track & trace technologies are the most popular among brands as they allow for the tracking of the original products. Apart from this, it alerts brand owners if the code or hologram is copied for counterfeiting.

All such packaging technologies are extensively being used in the pharmaceutical & healthcare, clothing & apparel, food & beverage, electronics, automotive, media & entertainment, chemicals, and a host of other industries. Among these, the pharmaceutical & healthcare sector is the biggest user of anti-counterfeit packaging technologies as it has been a victim of fraud for a long time. As per the OECD, in 2016, the global trade of fake medical drugs valued $4.4 billion. Fake drugs not only cost pharma companies brand image and business but also lead to serious health issues.

Due to this fact, the Asia-Pacific (APAC) region is expected to be the fastest-growing anti-counterfeit packaging market in the years to come. The OECD says that India accounted for the highest value of confiscated fraudulent pharma products in 2016, followed by China. Moreover, as per the United Nations (UN), China and Hong Kong rank at the top considering the export of all counterfeit goods worldwide. Other countries with a high total value of seized fake products globally are India, Singapore, Thailand, and Malaysia.

Hence, with the strengthening of anti-counterfeit laws by governments and international trade bodies, the demand for advanced packaging solutions will only grow.