Security Paper Market Size

Global Security Paper Market Overview

Security Paper Market Size was valued at USD 11.30 Billion in 2023. The Security Paper industry is projected to grow from USD 12.90 Billion in 2024 to USD 32.65 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.31% during the forecast period (2024 - 2032). A growing number of government programmes are focusing on manufacturing high-quality security papers in order to reduce the incidence of counterfeiting and increase document security and secrecy are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Security Paper Market Trends

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  Growing security is driving the market growth.

  
  

The market CAGR for security paper is being driven by the rising security. The growing need to combat counterfeit banknotes is driving a rise in the use of security paper to print cash and banknotes. Watermarks, holograms, and security threads or fibers are popular characteristics that make cash secure. The watermark is commonly found on banknotes because the public immediately recognizes it, and protects against scanning, chemical, mechanical, and replication efforts. In addition, security fibers are employed in conjunction with a watermark to defend against color photocopying. For example, the Reserve Bank of India provides currency with distinguishing security features such as watermarks and security threads to differentiate them from faked banknotes. Rising counterfeit note instances and the requirement for continuing currency creation and circulation to support the economy are driving expansion in the security paper industry. Many large currency note paper makers are now focused on new business prospects and increasing their product line to satisfy the rising needs of the corporate, education, and healthcare sectors. As part of their product development strategy, these firms are working hard to create upcoming technologies such as magnetic microwires and holograms.

The increased usage of security papers has enabled businesses, individuals, and regulatory authorities to limit the abuse of critical documents effectively. Manufacturers also help businesses build customized papers with various characteristics and kinds, such as holograms, watermarks, thread, and UV fibers. The security paper in banking applications must adhere to the Worldwide Clearing Bank Standard (CBS). The CBS standard is a collection of paper requirements developed by banks to guarantee that automatic document feeders may handle printed forms. Technological advancements such as hybrid paper have emerged as important market growth drivers. The major manufacturers are focused on developing highly secure technologies and incorporating them into their product offerings. With the trend of money counterfeiting in many rich and emerging nations, the need for security paper is rising since it has led to increased corruption, impeding various countries' progress. Cotton-fiber, polymer, or hybrid paper is commonly used to make money. Compared to regular paper, this makes banknotes more secure and resistant to wear and tear. With the increase in counterfeit instances in nations, many governments are looking for inventive ideas for new technologies and ways to help make banknotes more secure. They are anticipated to bring new market solutions. Furthermore, the growing use of paper ballot voting methods in the United States boosts the demand for security paper.

A rise in incidences of fraud and counterfeiting is driving the market. According to the Australian government, 121 applications were not completed in FY 2018-2019 due to suspicion of dishonesty or fraud, while 255 passports were canceled or rejected due to national security or law enforcement concerns. Furthermore, the number of counterfeit notes identified in circulation USD 5, USD 20, USD 10, and USD 150 grows yearly in countries such as Canada. According to the preceding point, the market is driven by the need for security paper to avoid counterfeiting. Thus, driving the Security Paper market revenue.

The purchase made in June 2022 by Giesecke + Devrient of the payment and identity solutions business from Valid USA, with the purpose of increasing its market presence and broadening its scope in the U.S. This transaction has allowed G+D to strengthen its position in the US market as well as enhance its capability to offer safety measures concerning payments and identification.

Security Paper Market Segment Insights

Security Paper Security Feature Insights

Based on security features, the Security Paper market segmentation includes hybrid papers, watermarks, holograms, and threads. The hybrid papers segment dominated the market, accounting for 35% of market revenue. Customers like hybrid sheets because they provide several safety features. As a result, the demand for hybrid papers is growing. Hybrid sheets incorporate features such as watermarks, threads, UV fibers, and UV printing. Such robust security characteristics are used to minimize fabricating practices, resulting in a surge in demand for security paper. Hybrid paper, for example, has been a primary driver of the security paper market's growth.

Figure 1:  Security Paper Market, by Feature, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Security Paper Application Insights

Based on application, the Security Paper market segmentation includes banknotes, legal & government documents, certificates, identity cards, passports, checks, and stamps. The banknotes category generated the most income. From a technological aspect, banknotes are the most difficult and prestigious value security documents. The most popular materials used to manufacture them are cotton-fiber paper, polymer paper, and hybrid paper. Security paper makes banknotes more robust and resistant to wear and tear compared to standard paper. Special polymers are used to produce banknotes because they last longer than paper notes and are resistant to fire and water.

Security Paper Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Security Paper market area will dominate this market; demand for security paper in North America has risen because of the need to ensure acceptable security across enterprise longitudes. Several business activities rely heavily on paperwork.

Further, the major countries studied in the market report are The US, Canada, Japan, India, German, France, the UK, Italy, Spain, China, Australia, South Korea, and Brazil.

Figure 2:  SECURITY PAPER MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Security Paper market accounts for the second-largest market share. With the increasing number of incidents of counterfeit banknotes in Europe, governments are searching for new technologies and tactics to help make banknotes secure. This is anticipated to create new commercial opportunities. Furthermore, the German Security Paper market dominated, while the UK was the fastest-expanding market in Europe.

Between 2023 and 2032, the Asia-Pacific Security Paper Market is estimated to develop at the quickest CAGR. Because of the rising population, the significant preference for cash transactions, and several government programs targeted at fast growth of the BFSI infrastructure. Furthermore, Asia Pacific is seeing an increase in the number of people migrating to other nations for work and further education. Moreover, China's Security Paper market held the largest market share, and The Indian Security Paper market was the Asia-Pacific region's fastest growing.

Security Paper Key Market Players & Competitive Insights

Leading market companies are extensively spending R&D on increasing their product lines, which will help the Security Paper market grow even more. Important market developments include new product releases, contractual agreements, acquisitions and mergers, greater investments, and collaboration with other organizations. The Security Paper industry must produce cost-effective merchandise to flourish and thrive in a more competitive and increasing market climate.

Manufacturing locally to reduce operating costs is an effective business strategy manufacturers use in the worldwide Security Paper industry to serve clients and expand the market sector. The Security Paper industry has recently provided some of the most important benefits.  Security and other major competitors in the Security Paper market are seeking to raise consumer demand by investing in research and development activities.

Security, an Austrian business specializing in digital and physical security systems for a wide range of product categories, has drawn notice by developing a new paper security seal. For many years, the firm has been a vital supplier to large industrial enterprises worldwide, and it is a leader in developing and delivering transparent and opaque security closing seals. For a long time, Securikett's research department has been working on producing paper-based security seals with the same performance and security as plastic-based security seals, which have been more routinely manufactured up until now.In August 2021, A new paper-based security seal is transforming the packaging business. Security creates security seals with color shifts from paper for the first time.

DSS is a worldwide public corporation with a diverse range of businesses.

Their business lines include direct-to-consumer goods, bio-health, stocks and funds management, blockchain and fintech, and renewable energy.

 DSS is focused on and ready to empower businesses of all sizes, driven by innovation, industry demands, and acquisitions. They are a firm focused on and ready to empower companies of all sizes, driven by innovation, industry demands, and acquisitions. DSS's business plan is built on a distribution-sharing scheme, in which stockholders would get shares in DSS's subsidiaries when they are strategically spun off into IPOs. In February 2020, Document Security Systems announced the general market release of their AuthentiGuard Security Paper. Its eight-tiered protections ensure that certificates and documents cannot be tampered with or precisely replicated, preventing fraudulent copies and scans.

Afterward, Genus Paper & Boards, a Kailash Group of Companies’ division, announced in November 2022 its plans concerning business transformation and expansion into a stop shop for all packaging grades. The company acquired NS Papers so that it can increase the variety of products offered and reach a wider range of markets. Moreover this acquisition enabled them to provide their clients with a broader selection of packaging grades, thus making them more competitive within this industry.

Key Companies in the Security Paper market include.

• Ciotola S.R.L.(Italy)


• Drewsen Spezialpapiere GmbH & Co. KG


• EPL House for Security Printing (Libya)


• Sequana Group (France)


• Giesecke & Devrient (Germany)


• China Banknote Printing and Minting Corporation (Beijing)


• Document Security Systems Inc.(U.S.)


• Security Paper Limited (Pakistan)


• De la Rue plc (U.K.)


• Security Printing and Minting Corporation of India Limited


• Fedrigoni Group (Italy).

Security Paper Industry Developments

November 2022: International Paper introduced OHMEGA Conductive Ink + Touchcode, it's latest technology that adds a new layer of trademark protection to the packaging sector. The advantages of OHMEGA Conductive Ink + Touchcode include rapid and easy activation via the end user's phone's browser, eliminating the need for a camera or a separate app, and a safe and secure platform that reduces the danger of spoofing, phishing, or counterfeiting.

Security Paper Market Segmentation

Security Paper Security Feature Outlook

• Hybrid Papers


• Watermarks


• Holograms


• Threads

Security Paper Application Outlook

• Banknotes


• Legal & Government Documents


• Certificates


• Identity cards


• Passport


• Checks


• Stamps

Security Paper Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America