Track and trace solutions allow companies to track an individual product through the supply chain and trace it to its origin. Track and trace (T&T) solutions assist healthcare companies or organizations in effectively managing their supply chain and mitigating the risks associated with counterfeit drugs. It is the process that determines the current and past locations of a drug. It is segmented on the basis of product, technology, application, end-user, and region.
Rising concerns on brand protection due to product counterfeiting and theft of drugs in the pharmaceutical industry impact brand image and product reliability to contribute to market growth. Track and trace solutions enable pharmaceutical companies to track and trace compliance mandates with ease, manage recalls better, and increase the overall efficiency of the manufacturing processes.
Pharmaceutical Companies Focusing on Brand Protection to Drive Market Growth
Brand protection technologies such as anti-theft and authentication intend to protect individual items rather than safeguard the entire supply chain. Hence, it is required to bring advanced technology into the system to avoid introducing fake products at any stage in the supply chain. To combat counterfeiting and identify massive product items, a solution with automatic and non-line-of-sight capabilities is required. Preventing brand value has become a major focus for building the business and maintaining product reliability. Thus, the increasing focus of pharmaceuticals and medical devices manufacturers on brand protection is expected to drive the track and trace solutions market growth.
Government bodies and companies in the healthcare sector are working to approve specific laws to implement serialization in track and trace systems to ensure supply chain efficiency. Many countries such as Europe are making it mandatory to implement track and trace solutions throughout the supply chain of pharmaceutical products. Serialization is the major step in ensuring compliance with new ePedigree regulations required for product traceability during the supply chain. These are the factors focusing on boosting the market growth during the forecast period.
Impact of COVID-19
COVID-19 is a viral infection that has been declared a global pandemic. The virus has highlighted the importance of product tracking and tracing, resulting in a supply chain that helps minimize costs for pharmaceutical companies and reduces the cases of counterfeiting, black-marketing, and stockpiling of all types of masks, gloves, thermometers, and disinfectants.
Also, an increase in pharmaceutical development, manufacturing, and packaging is expected to drive the adoption of track and trace solutions during this period. Furthermore, players operating in the medical devices market are altering their long-term and short-term growth strategies by tapping the critical care devices market and developing innovative products to combat the pandemic.
On the other hand, although the impact of COVID-19 on the track and trace solutions market is lower than on other medical devices, the timely development and implementation of contingency plans are essential for business operations. Depending on the impact on economic conditions, there will most likely be threats to vulnerable business models and growing opportunities for development.
However, the effects of the covid-19 lockdown and restrictions are short-term. Manufacturers may begin diversifying raw material sourcing or investing in spreading production across different markets rather than in concentrated geographic areas, such as China and India. Another longer-term effect is likely to be the reindustrialization of pharmaceutical production in Europe and the US to reduce dependency on drug imports. This will lead to an increase in the demand for track and trace solutions in these countries.
North America and Asia-Pacific are the top two dominant markets for the global track and trace solutions market. With highly regulated serialization & aggregation standards and the availability of advanced technology and healthcare infrastructure, North America is dominating the global market. The need for track and trace solutions that protect against product counterfeiting is high in developing countries of Asia due to the high incidence rate of drug counterfeiting.
About Straits Research Pvt. Ltd.
StraitsResearch is a market intelligence company providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision-makers. Straits Research Pvt. Ltd. provides actionable market research data, especially designed and presented for decision making and ROI.
Whether you are looking at business sectors in the next town or crosswise over continents, we understand the significance of being acquainted with the client’s purchase. We overcome our clients’ issues by recognizing and deciphering the target group and generating leads with utmost precision. We seek to collaborate with our clients to deliver a broad spectrum of results through a blend of market and business research approaches.
Cut out counterfeit attempts? Reid Fruits and Laava show it’s possible
Over three years, Reid Fruits drastically reduced the number of counterfeit attempts on their premium Tasmanian cherries, sold in Asian export markets where the brand was in high demand and had a strong reputation that was at risk from inferior products sold under fake Reid Fruits branding.
In the 2019-20 season, in a bid to fight the fakes, Reid Fruits introduced Laava Smart Fingerprints® on its cherry boxes bound for 20 export markets. The result: only 10 counterfeit attempts, all of which were automatically stopped by the Laava platform.