Security Paper Market Trends

Growth Drivers

• Growing product piracy and counterfeiting: The usage of identity cards, passports, and certificate forgeries has increased in recent years. However, this can also result in piracy and counterfeiting of these products. The amount of counterfeit goods traded globally is massive. The unlawful global trade in items that are counterfeit or pirated reached USD 464 billion in 2019, which represents 2.5% of global trade. Furthermore, one of the main reasons for the rise in security paper in the banking industry is the increase in fraud related to financial services like bank checks and counterfeit currency notes.
• Rising efforts to reduce the misuse of important documents: The growing use of security papers has made it possible for organizations, people, and government agencies to prevent the misuse of important documents. Additionally, manufacturers work with companies to create bespoke papers with a range of features and types, including UV fibers, thread, holograms, and watermarks. Hybrid paper is one example of technological innovations emerging as key market growth drivers. The key producers are concentrating on creating extremely secure technologies and adding them to their range of products.

Challenges

• Rising shift towards digital solutions: The demand for secure papers in sectors is steadily shrinking as a result of the move to digital platforms for financial and interpersonal transactions, lessening the need for physical documents, especially in the developed regions.
• High production costs and advancements in counterfeiting techniques: Security papers are expensive to produce due to the need for advanced technologies such as watermarks, holograms, and chemical treatments. This is a key factor expected to hamper overall security paper market growth during the forecast period. Moreover, counterfeit techniques are evolving which is putting continuous pressure on manufacturers to update and enhance its security features.