Security labels represent one of the biggest growth areas in the label and packaging industry. Counterfeiting is big business, and suppliers and converters have worked tirelessly to develop label products to help curb counterfeiting.

Inovar Packaging Group, with 13 facilities and headquarters in Irving, TX, USA, has developed label and packaging solutions that accomplish multiple goals. These products enhance branding, provide features that are practical, as well as those that are hidden within branding depending on the customer’s individual needs.

“The counterfeit product market is becoming increasingly sophisticated, with counterfeiters adopting advanced technologies,” explains Ashley Stewart, director of marketing, Inovar. “Retail channels – such as Amazon – have provided an easy way for counterfeit products to enter the market, with the supplement market being one of the most frequent offenders. Many big-name supplement brands have encountered instances of counterfeit products being sold in the last few years alone.”

To help combat counterfeit goods, Inovar has addressed several key trends in this space. First and foremost, the converter has utilized the integration of technology for authentication purposes.

“RFID and NFC technology is emerging as a trend as national retailers mandate inventory management programs and are effective technologies against counterfeiting,” says Stewart. “Inovar can embed RFID or NFC in existing packaging, so when scanned using a smartphone or specialized reader, the customer is provided instant verification of authenticity.”

Unique scannable QR codes can be used for track-and-trace on the brand’s end, which can deliver detailed information to the customer about the specific product information (batch number, manufacturing location, and more). Of course, tamper-evident materials, label seals, and neck bands can make it obvious to the customer when product security has been tampered with.

Plus, graphics on a printed label can now be combined with AI technology that allows a consumer to take a photo of a product label and get immediate confirmation if it is authentic or not. Similar technology is being used with augmented reality (AR), where the consumer can use their smartphone camera to visually confirm product authenticity.

“Technology is evolving quickly, and as new products are introduced, the counterfeiters are already working on a solution to overcome them,” remarks Stewart.

Security challenges

Conversely, the challenges are numerous. In addition to obstacles with e-commerce platforms like Amazon, third-party platforms make it easier for counterfeiters to sell products without rigorous checks, increasing the need for secure packaging. Cost is an issue, too. Combining multiple technologies can be expensive and complex, requiring careful integration to maintain user experience. In order to continue fostering success, education will have to occur at the consumer level.

“Many consumers still lack knowledge about security features, which can be exploited by counterfeiters,” notes Stewart. “Brands have responded by redesigning packaging to include more layered, complex, and technology driven security features that are harder to replicate, including intricate embellishments. Elements, like security seals or perforations that visibly show if the product has been tampered with, have emerged in many product industries including food, supplements, personal care, and more.”

Inovar Solutions

To ensure it delivers cutting-edge label solutions to meet surging demand for anti-counterfeiting technologies, Inovar has worked with numerous organizations. To help brands incorporate RFID technology in their existing packaging, Inovar has worked closely with the RFID Lab at Auburn University. The Auburn Lab is a research institute that brands are required to work through to obtain RFID tag approval, prior to releasing tagged products to market for national mandates such as the Walmart mandate.

“Material, ink, coating, and equipment manufacturers have been instrumental in helping us develop unique solutions that are extremely difficult to be replicated,” states Bill Kral, CCO, Inovar. “We also work with several software and marketing organizations to assist with encoding NFC chips or develop web-based solutions that work directly with our labels. Inovar also assists with providing tagged samples to the Auburn Lab for approval and helping brands make a smooth transition to market.”

Inovar’s solutions are expansive. For example, the company offers Cast and Cure for a holographic look, as well as specialty foils, glitter additives, and tactile varnishes that are all extremely customizable, making the product harder to replicate.

“Intricate and detailed label diecuts can both help your supplement label stand out among the many brands using rectangular shapes while also making the label difficult to reproduce,” notes Stewart.

Inovar also touts hidden solutions for anti-counterfeiting. Black light additives can be added to label coatings during production and used to determine if a label is counterfeit or not, without the consumer knowledge.

“Microtext features a microscopic area of printed text or sequential numbering on a label that is illegible to the naked eye but visible under magnification,” adds Stewart. “Embedded RFID tags in labels or shrink sleeves can help verify the authenticity of the product while remaining discretely hidden.”