In a marketplace threatened by counterfeiting and product tampering, labels are no longer just visual identifiers. They have evolved into highly engineered security tools that ensure product integrity, safeguard brand reputation, and enhance supply chain visibility.
According to a June 2025 report, the Global Security Labels Market was valued at USD 33.6 billion in 2023 and is projected to reach USD 61.25 billion by 2032, growing at a CAGR of 6.9% (2025–2032).
Global Security Labels Market by Geography
With fake goods accounting for 3.3% of world trade, industries like pharma, agrochemicals, liquor, FMCG, and automotive are under heightened threat.
What is the solution? Functional labels with advanced tamper-evident, anti-counterfeit, and track & trace features.
The Science Behind Functional Labels
Unlike traditional labels, functional labels are designed using specialized substrates, adhesives, inks, foils, and optical technologies. They serve dual purposes:
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Physical Security → Prevent tampering, resealing, or duplication
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Digital Security → Enable authentication & real-time traceability
Labels can be multi-layered, combining overt (visible), covert (hidden), forensic, and digital features to create an almost impossible challenge for counterfeiters.
Key Functionalities & Technologies
VOID Labels
- How it works: Adhesives transfer a “VOID” message when peeled
- Use cases: Electronics, warranty seals, pharma
- Benefit: Clear, irreversible tamper evidence
Delamination Labels
- How it works: Multi-layer films split when removed
- Use cases: FMCG cartons, apparel, cosmetics
- Benefit: Single-use guarantee; prevents label transfer
Destructible Labels
- How it works: Fragile substrates break into pieces on removal
- Use cases: Agrochemicals, liquor bottles, industrial equipment
- Benefit: Zero reuse potential
Taggants
- How it works: Invisible chemical/microscopic markers (fluorescent, magnetic, DNA-based)
- Use cases: Pharmaceuticals, excise, government documents
- Benefit: Forensic-level authentication, nearly impossible to replicate
Covert UV/IR Labels
- How it works: Hidden patterns visible only under UV/IR light
- Use cases: Tobacco, nutraceuticals, luxury goods
- Benefit: Ideal for field inspectors; adds covert verification layer
Holographic Labels
- How it works: Diffractive nano-optical structures creating 3D visual effects
- Use cases: Pharma, liquor, FMCG, electronics, automotive
- Benefit: High deterrence against scanning or photocopying; combines aesthetics with security
Additional Security Inks & Substrates
- Thermochromatic inks – change color with temperature
- Fluorescent inks – visible under UV light
- Invisible inks – for machine-readable authentication
- Cold foil stamping & dyed substrates – add unique brand signatures
Tamper-Evident Packaging Add-ons
- Shrink sleeves (full body) and shrink bands (bottle necks/caps) provide warranty sealing and packaging integrity.
Digital Extension: Track & Trace Labels
The future of labels is phygital—merging physical security with digital intelligence.
- Serialization: RFID, QR codes, barcodes, or alphanumeric codes unique to each unit
- Authentication: Consumers or inspectors verify originality instantly
- Traceability: Monitor movement across every supply chain node
- Gray Market Detection: Identify diversion and parallel trade
- After-Sales: Warranty validation, loyalty programs, consumer engagement
- Supported Standards: GS1 barcoding, cryptographic serialization, blockchain-enabled traceability, API integration with ERP/CRM/BI systems.
The Holostik Advantage
With over three decades of expertise and 10,000+ brands across 90+ countries, Holostik has set global benchmarks in brand security:
- Turnkey Security – From holography to SaaS traceability platforms (via Utopia Digitech)
- Layered Protection – Overt, covert, forensic & digital in one solution
- Industry-Specific – Tailored solutions for pharma, FMCG, liquor, agro, automotive, tobacco & more
- Compliance – GS1, ISO 9001:2015, ISO/IEC 27001:2013, CMMI Level 3
- Proven Impact – 41%* increase in sales | 90%* drop in duplication | 339%* ROI | 100%* supply chain visibility
*Results have been derived from specific case studies.
Security labels are no longer optional packaging add-ons, they are critical brand infrastructure. From protecting human lives in pharma to safeguarding margins in FMCG, functional labels prevent tampering, fight counterfeits, and deliver real-time supply chain intelligence.
With Holostik, your labels don’t just stick, they protect, authenticate, and connect.