Global Security Printing Market - Procurement Market Intelligence Report

Global Security Printing Market Analysis

The global security printing market is expected to witness a category spend growth of USD 10.76 billion between 2016-2021, with spend momentum accelerating at a CAGR of 6.68% during the forecast period. This increasing spend on security printing will be primarily attributed to the increasing amount of counterfeit activities. The counterfeiting of documents may involve activities such as invading buyers’ (brand owners) operations with an unlawful copy of tax stamps and producing forged documents and banknotes. These increasing threats associated with document security have driven buyers to adopt security printing processes to print confidential documents. Security printing processes ensure that they cannot be duplicated. 

In terms of regional spend, the security printing market is mainly divided between four major regions, each with a market share between 18-30%. APAC owns the majority market share mainly because in this region, especially countries such as China and India, the circulation of banknotes that are prone to counterfeit is high. Also, with the rise in disposable income and digitization, the use of payment cards and bank checks have increased as end-consumers prefer paying through convenient methods for daily activities and travel, which in turn is driving the security printing market (as these documents need to be well secured) in this region. Meanwhile, MEA, the second largest contributing market, is expected to register a CAGR of 5%–7% during the forecast period. This is due to factors such as high demand for cash transactions, alternative modes of payments (including bank checks and payment cards), and large-scale ID programs initiated by enterprises. Hence, the demand for security printing is increasing in the region.

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Insights Offered in this Security Printing Market Report

This procurement intelligence report provides buyers with insights into the category spend and the cost and volume drivers impacting security printing market prices. It also offers information on the critical growth enablers that are responsible for impacting the overall supplier cost structure, while also enlisting the preferred top global security printing suppliers.

This procurement intelligence report on the global security printing market will help buyers understand:

• Global and regional spend potential for the period of 2016-2021
• Top security printing suppliers and their market position
• Security printing market pricing trends and forecasts
• Supplier evaluation criteria, SLA terms, and negotiation strategies

Security Printing Market Price Trends

This procurement intelligence report contains in-depth pricing insights into security printing market prices and expectations. These pricing insights provide an overview and comparison of pricing models, supply chain margins, and the volume and cost drivers impacting pricing:

• Suppliers in the regions such as North America and Europe have increased their spend on R&D activities to enhance security features in their solutions. This is expected to impact on the overall cost structure of suppliers.

• The fluctuations in the price of raw materials such as plastic, paper, and security ink could increase the cost structure of suppliers, thereby increasing procurement costs for buyers.

• Buyers in the market are increasingly adopting digitized forms of documents due to the increasing costs of paper documents. In addition, the growing popularity of digital solutions such as e-wallets has reduced the use of security documents such as bank notes, payment cards, and ID proofs. These factors are impeding the growth of the global security printing market.

For additional security printing market price insights, download a free sample report now.

Category Spend Optimization for Security Printing

To offset the potential rising costs for the procurement of security printing, buyers are advised to engage with suppliers that have security measures in place in terms of performing background checks on employees/staffs working at security printing suppliers’ premises. Suppliers also need to maintain safe operational procedures during the process of security printing, which allows access to only authorized staff for document handling to avoid misusing of information and forgery of documents. To ensure long-term engagement with buyers, suppliers must maintain an SOP within their operations and ensure that employees comply with such procedures to maintain the safety of information to be printed on documents.

To help category managers optimize security printing procurement spend, this report also covers:

• Security printing market major category requirements and procurement pain points
• Category sourcing evaluation matrix
• Security printing supplier selection criteria
• Tactical and strategic cost-saving levers for security printing procurement
• Category risk analysis

Key Features of this Report

Supply Market Insights	Procurement Best Practices
Cost Saving Opportunities	Pricing Models
Negotiation Strategies	Category Risk Analysis
Key Supplier Analysis	Supplier Capability Matrix

Global Security Printing Market- Category Spend Analysis

According to procurement analysts at SpendEdge, one of the key category growth drivers for the security printing market is the rise in counterfeit of security documents. Counterfeiting of security documents, such as banknotes, coupons, and tax stamps, has increased immensely due to the rise in terrorism and criminal networks as they have fueled the underground economy and finances. The increased circulation of counterfeit currency, in turn, poses a serious threat to the economy of countries, consumers, and financial institutions. Technological innovations, such as desktop graphics and LaserJet and inkjet printers, have made it easier for counterfeiters to forge documents. As a result, buyers have become conscious about protecting security documents to avoid counterfeiting

Brand piracy is another factor driving the growth of the security printing market. A growing number of buyers are implementing security features on their labels and product packaging to protect their brand names. Brand owners work in collaboration with suppliers (printing partners) to develop a multi-layered protection plan (by integrating multiple layers of security into the document such as encryption, tokenization, and EMV chip card technology), which enables them to protect their brand and avoid counterfeiting. Some of the sectors that are affected by brand piracy include pharmaceutical, electronics, semiconductor, and consumer packaged goods. Buyers in these industries are adopting measures such as micro text, guillochés, variable images, and illustrations. These measures are integrated with the digital printing process to produce package designs that are difficult for counterfeiters to replicate, thus enabling buyers to protect their brand. Also, security printing suppliers are offering security substrates such as fluorescent fibers, watermarks, taggants, embedded holograms, and microprinting fiber. These substrates contain a high level of security measures to ensure brand protection.

Global Security Printing Market - Procurement Best Practices

One of the procurement best practices in the market is for buyers to engage only with suppliers that have security measures in place in terms of performing background checks on employees/staffs working at security printing suppliers’ premises. Suppliers also need to maintain safe operational procedures during the process of security printing, which allows access to only authorized staff for document handling to avoid misusing of information and forgery of documents. To ensure long-term engagement with buyers, suppliers must maintain a SOP within their operations and ensure that employees comply with such procedures to maintain the safety of information to be printed on documents.

Global Security Printing Market - Procurement Challenges

This security printing procurement intelligence report highlights that the increasing cost of security printing due to the volatility of raw material prices is one of the major procurement challenges for the buyers in this category. The cost of raw materials such as paper, plastic or biopolymers, security inks, security threads, micro metallic parts, and printed electronics depends greatly on the availability and accessibility of such materials to suppliers. Since the suppliers have no say over the raw material costs, they increase service pricing to maintain their ROI.