India’s authentication and traceability industry projected to reach Rs 16,575 cr by FY29: Report
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India’s authentication and traceability (A&T) sector is expected to hit Rs 10,612 crore in FY 2024-25, potentially growing to Rs 16,575 crore by FY 2028-29, according to industry projections. This represents an impressive 11.3% compound annual growth rate (CAGR).
Current data from the Authentication Solution Providers’ Association (ASPA) and Accenture reveals the industry stood at Rs 9,705 crore in FY 2023-24, having expanded at a 7.4% CAGR since FY 2019-20.
Global market trends show parallel growth, with the worldwide A&T sector valued at $147 billion in 2023 and forecasted to reach $382 billion by 2032. The Asia-Pacific region is anticipated to drive this expansion with a 14.2% CAGR, fueled by regulatory developments and consumer demands for product authenticity.
Domestic growth in India is primarily powered by pharmaceuticals (17%), consumer products (14%), cosmetics (13%), and automotive components (13%). Several factors contribute to this expansion, including rising counterfeit incidents, e-commerce growth, heightened consumer awareness, and evolving regulatory needs.
ASPA President Manoj Kochar emphasized the sector’s critical role during a recent presentation: “This study marks a significant step in India’s battle against counterfeit products. Authentication and traceability have become fundamental requirements – not luxury features – for consumer safety, brand protection, and marketplace integrity. With double-digit growth projected, these findings will help shape policies and business strategies for a more secure commercial ecosystem.”
The analysis indicates holograms and QR codes remain dominant authentication technologies, though emerging innovations like blockchain, IoT, and artificial intelligence are attracting increased attention across industries.
The joint report incorporated survey data from ASPA member organizations supplemented by consultations with government agencies, industry leaders, and international regulatory bodies.
(With inputs from IANS)
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