Anti-counterfeit Pharmaceutical Packaging Market Trends

Growth Drivers

• Regulatory mandates and government support: Governments play a significant role within the global platform to reduce the risk of counterfeit products by strengthening the regulation of packaging. In Europe, the Falsified Medicines Directive needs safety features such as tamper-evident packaging and 2D barcodes on all medicines sold. Similarly, in the U.S., the FDA has implemented the Drug Supply Chain Security Act (DSCSA), which mandates that tracing from manufacturers to the dispenser is necessary using an interoperable electronic system. Various other countries are also enforcing or strengthening serialization mandates, primarily to curb the supply of counterfeit drugs into global supply chains.
• Rising cases of counterfeit drugs: According to the World Economic Forum in December 2024, at least 1 in 10 medicines in middle and low-income countries are falsified or substandard. Such counterfeit drugs usually contain incorrect dosages and harmful ingredients, failing to treat the condition of the patient and increasing antimicrobial resistance. With the rise in awareness, all the stakeholders are under immense pressure to secure the supply chain of the drugs. The burgeoning threat has compelled the pharmaceutical companies to invest in modern packaging solutions such as holograms, serialization, etc. The surge in counterfeit activities has also increased the incorporation of a strict policy framework, further augmenting the market growth.
• Technological advancement and smart packaging techniques: The inclusion of the RFID/NFC chips and QR codes is fostering the market forward. Such innovations are allowing transparency in the supply chain and real-time authentication. Also, the cost of these technologies is decreasing, and manufacturers are finding them viable for a broader range of pharmaceutical products. Also, the amalgamation of the IoT and AI packaging system upgrades the detection of anomalies and monitoring processes. These methods make the supply chain more robust against any attempts at counterfeiting. Also, in this way, pharmaceutical companies safeguard the reputation of their brands.

Challenges

• Government pricing and barriers to reimbursement: The cost of manufacturing Anti-counterfeit pharmaceutical packaging is higher compared to the traditional methods. Additionally, U.S. Medicaid coverage for the Anti-counterfeit pharmaceutical packaging solution is very less, creating a barrier for low-income consumers to access the drugs. Also, a reduction in EU price caps for the manufacturer's margin crippled the profit margin rate for the companies, and negotiations on the bulk deals were conducted.
• Barriers of Regulation delay: The complex and frequent changes in the regulatory standards for packaging have created a delay in the process. A complex issue is addressed by global businesses as per the differentiation of compliance between U.S. and EU regulations. This creates a barrier for the business to easily penetrate the market and launch its new product to gain higher revenue.