India's Growing Hologram Market
18 August, 2010 - IHMA welcomes latest report on India's growing hologram market
Alcohol tax stamps are leading the way for hologram growth in India says the International Hologram Manufacturers Association (IHMA) after welcoming a new report which confirms the strength of the country's market for anti-counterfeiting technology.
The IHMA says the report*, produced by a leading Indian consulting firm, recognises that India is now one of the most dynamic global markets for holography and a major producer, with more than 40 national companies manufacturing holograms.
The domestic market for holograms is currently worth almost $100 million but is predicted to grow by 15% over the next five years - success is being driven by the technology's increasing use in product authentication and excise collection applications.
Alcohol excise stamps, issued by state governments in India, not only account for approximately half of all the holograms in use but also represent the fastest growing sector of the market.
Excise duty on alcohol is both an important source of government revenue and a means of controlling and limiting consumption. But the illicit trade in beers, wines and spirits, through smuggling and counterfeiting, costs billions of dollars a year in lost revenue.
So, according to the IHMA, it is inevitable that holograms are being seen as an invaluable and highly effective weapon to be used by tax collecting authorities in their war on smuggling and counterfeiting.
The IHMA also says that Indian-based pharmaceutical companies, worried by resourceful and well organised counterfeit gangs, recognise the value of holograms in protecting revenue streams and brand reputation - the report says 20% of the millions of holograms produced annually are used by drug and cosmetic producers as an integral part of their brand authentication programmes.
Consumer goods and automotive vehicle components were also important markets for holograms with 8% and 3% market share respectively.
Ian Lancaster, IHMA general secretary, said: "We welcome the report, which shows holography is a highly effective, flexible weapon in the ongoing battle to thwart the counterfeiters and fraudsters in India and beyond.
"All those in the supply chain are reassured by the presence of holograms and recognise the benefits they provide.
"People are still reassured by the presence of holograms on banknotes and recognise the benefits they provide. Holography appears to have a strong future in India, where new ways for this versatile and durable technology to be used are emerging."
* The report is published by Cygnus Business Consulting & Research and is available at www.researchandandmarkets.com