A recent study published by Future Market Insights (FMI) provides in-depth insights into the security bags market. It offers demand outlook for various market segments in terms of raw material type, product type, application, and end user. The survey also provides an up-to-date analysis of latest trends and refined forecast about hidden prospects that could facilitate growth in the coming decade.
As per a detailed study by FMI, the global security bags market is estimated to top US$ 419 Mn in 2021. Suring applications across financial institutions, hospitals, government organizations, and national retail companies are propelling the demand for security bags. On account of this, the market is expected to expand at a CAGR of 8% during the forecast period from 2021 to 2031.
Tamper-proof security bags assist in safe delivery of packaged goods from the assembling site to consumers by protecting them from external factors during logistics operations such as handling, packaging, and transport. Driven by this, these bags are gaining immense popularity across the e-commerce sector. Thus, growing adoption of online retail channels by small and medium scale enterprises (SMEs) will accelerate sales of security bags in the coming years.
Rising need for safe handling of delicate items such as evidence components in forensics agencies also will create growth prospects for the security bag market. These bags are increasingly being used by the law enforcement departments to ensure that the evidence is not tampered with or violated by any additional fingerprints or other environmental factors while handling. In response to this, the demand for security bags is expected to grow year-over-year by 8.3% between 2020 and 2021.
As per the product type, the opaque security bags segment are projected to account for the largest share in the global market through 2031. Growing usage in the storage and transportation of confidential documents and crime scene evidences is a factor favoring the growth in the segment.
“Key manufacturers are emphasizing on developing new variants of security bags made of recyclable materials to cater to the increasing demand for sustainable security bags from hotels and casinos. This is expected to accelerate the growth in the market,” says a FMI analyst.
Key Takeaways from the Security Bags Market Study
- Sales in North America are anticipated to rise at a CAGR of 7.6% through 2031, driven by rising inclination towards flexible packaging solutions across the e-commerce sector.
- Favored by rising demand for tamper-proof packaging solutions from law enforcement in the U.K. and Germany, the market in Europe is estimated to expand at 1% CAGR over the forecast period.
- China is expected to dominate the market in East Asia between 2021 and 2031, on the back of rapidly expanding e-commerce industry in the country.
- Plastic security bags are forecast to account for the largest share in the raw material type segment.
- On the basis of application, the pharmaceutical distribution is projected to emerge as the most remunerative segment, favored by surging demand for optimal care packaging solutions during while handling and transit of various items.
Key Drivers
- Increasing usage of opaque security bags for storing valuables in hotel vaults and personal items of hospital patients owing to their visually concealing and recycling attributes is spurring the sales of opaque security bags.
- Implementation of strict regulatory standards to standardize pharmaceutical packaging in the U.K., the U.S., Germany, and other countries is encouraging pharmaceutical companies to invest in security bags, which is expected to drive the growth in the market.
Key Restraints
- Implementation of stringent regulation concerning the use of plastic across the U.S., China, India, and others is restraining the growth in the plastic raw material type segment.
- Low durability and wear & tear characteristic of paper compared to other materials such as fabric, is hampering the sales of security bags made of paper.
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Competitive Landscape
The top five players in the global security bags market are Ampac Holdings LLC., Coveris Holdings S.A., Mega Fortris, KOROZO Ambalaj San.ve Tic A.S., and Harwal Ltd. As per FMI, these companies are anticipated to account for nearly 10% to 15% of the total sales in 2021.
Key players are aiming at strengthening their distribution channels through collaborations, mergers, acquisitions, and partnerships. Apart from this, some of the manufacturers are focusing on launching new products to improve their product portfolios and gain a competitive edge. For instance,
- In November 2021, ProAmpac, a leading flexible packaging and material science company, announced acquiring two Ireland-based sustainable and flexible packaging manufacturers Fispak and Irish Flexible Packaging from their parent company IFP Investments Ltd. This will assist the company to expand its product portfolio and market share in Ireland.
- In November 2019, Korozo announced acquisition of a Belgium-based packaging firm Vitra NV. The acquisition will help the company to expand its portfolio in thin films packaging, security bags, labels and small-sized bags for postal and transit services.
Some of the key players operating in the market profiled by FMI are: Ampac Holdings LLC., Coveris Holdings S.A., Mega Fortris, KOROZO Ambalaj San.ve Tic A.S., Harwal Ltd