Poised for Growth
If you're a package printer, you need to be keeping an eye on brand protection technologies. Slowly but surely, brand owners are realizing how important protecting their brands has become. Some discover this after they've suffered loss of revenue after a counterfeiter compromises the integrity of the brand. Others have taken more proactive approaches. Whatever route the brand owner follows to securing its brand, package printers will be a big part of the brand's protection strategy.
The market is there
Pira International recently released, "The Future of Anti-Counterfeiting, Brand Protection and Security Packaging V," which breaks down the market by technologies, end-use segment, and geographic markets with five-year forecasts to 2014. Buoyed by innovations in RFID, security printing, and 2D bar code technology, Pira predicts the global market for brand protection to reach a value of more than $11.4 billion by 2014, with a compound annual growth rate (CAGR) of 11.1 percent. Impressive growth, but the market still has not fully matured. "In terms of its product/market life cycle, I would suggest that the brand security/protection market is still in its infancy or introduction phase," says Corey Reardon, president and CEO of AWA Alexander Watson Associates B.V. "Unfortunately, it will take either a directive from government to impose brand security/protection more broadly causing a tipping point, or a catastrophic event that either threatens public health or safety, or affects it." If the latter occurs, Reardon asserts that it may be too late, depending on the scope and seriousness of the event. "But, it will cause a tipping point, driving growth and implementation of brand security/protection across a wider spectrum," he says.
Bob Spiller, president and CEO of Sekuworks, adds, "Most companies are in various states of denial. Most of them will go through some sort of epiphany. It may be a legal issue, it may be that a consumer gets hurt, or they discover some counterfeits," he says. "And, then they will begin grabbing at various technologies."