Market Trends of Security Paper Industry
This section covers the major market trends shaping the Security Paper Market according to our research experts:
Currency to Hold Significant Market Share
- With the increasing trend of currency counterfeit in various developed and developing countries, the demand for security paper is increasing, as it has led to the escalation of corruption hindering various country’s growth. The currency is generally manufactured from cotton-fiber paper, polymer, or hybrid paper. This makes banknotes more secure and resistant to wear and tear compared to common paper.
- Paper money tends to be updated with new versions that contain security features and attempt to make it more difficult for counterfeiters to create illegal copies. Banknotes consist of a watermark and thread compromising of fluorescent, magnetic, metallic, and micro print elements. Also, special types of polymers are used for manufacturing banknotes, as they have a better shelf life than paper notes and are resistant to fire and water. Every country has its own type of security features.
- Most of the companies use the cylinder mold technology for three-dimensional, vivid watermarks. This is an exclusive production procedure used only by secure paper manufacturers. Furthermore, Louisenthal offers a banknote substrate portfolio to suit all climates and circulation conditions. These substrates can be integrated with any security feature to ensure protection against counterfeiting. Their cotton-based banknote substrates perfectly suit the requirements typical of the different banknote denominations of a country’s currency.
- Furthermore, bank governments of countries are focusing on producing high-quality security paper currency avoiding counterfeiting. For instance, in July 2019, the Bank of Italy and Istituto Poligrafico e Zecca dello Stato (IPZS), announced their set up of a new company, Valoridicarta SpA, to produce high-quality watermarked paper with embedded holograms and security features for banknotes and identity documents.
- Furthermore, the Indian currency has the maximum number of security features present, and the latest addition is the anti-photocopying feature, i.e., Omron feature. Due to these security features, they make Indian Rupee less prone to counterfeiting, compared to other country currency notes. However, according to RBI, they detected an increase of 20.2%, 87.2%, and 57.3 % in counterfeit notes detected in the denominations of Rs 10, Rs 20, and Rs 50, respectively, in 2019, but counterfeit notes detected in the denomination of Rs 100 declined by 7.5 %. With an increase in value and volume of banknotes on a yearly basis, the increase in counterfeit of various denominations tends to increase, so the market studied with enhanced security is expected to increase.
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Asia-Pacific to Witness Significant Market Growth
- The Asia-Pacific security paper market is projected to grow at a significant rate. The growth of the security paper market in the Asia-Pacific region is attributed to the strong demand for security features, such as watermarks, holograms being embedded during the printing stage of banknotes, passports, and stamps, the growing tourism industry, economic stability, increasing incomes, and infrastructure.
- According to the National Immigration Administration (NIA), about 1.05 billion outbound trips were made by Chinese mainland residents from 2009 to 2018, with over 160 million in 2018 alone. Around 13% of the mainland residents have held valid regular passports, and the number has grown approx 200 million at the end of 2019. This instance states the demand for security paper in the passport segment.
- Furthermore, the growth of the market studied in the region is also driven by the increasing demand for banknotes due to the population growth and cash-based economy in some countries such as India and Indonesia. High demand for security papers in the region is attributed to the increased spending on legal services, such as documentation, litigation, and licensing.
- In China, according to the Ministry of Transport of China, there was an increase in the number of drivers of 53 million in 2018, when compared to its previous year. This inhibits the demand for government licenses for which the usage of security paper increased with the demand for natural materials for production, such as cotton and pulp.
- Furthermore, in India, more than 43 lakh cases are pending in 25 high courts in the country, and over 8 lakh of these are over a decade old. With the decreasing number of pending cases, the usage of stamp paper will increase, which effectively increases the growth of the market in stamp security paper.
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