In 2019, the global cosmetics industry was valued at $532.43 billion, with estimations suggesting that this will rocket to $805.61 billion by the end of 2023. The lucrative profit margins and continued expansion of the cosmetics industry have made it a popular target for counterfeiters, affecting millions of vulnerable customers worldwide.
The European Union Intellectual Property Office (EUIPO) valued financial losses in the cosmetics industry at €7 billion per year due to counterfeit products making it to market. Some of the most common items to be illegally produced include makeups, creams, skincare products, and perfumes. In the UK alone, counterfeit cosmetics are the third most investigated counterfeit product, with authorities seizing over £2.2 million worth of fake makeup and other cosmetics products, whilst in America, the counterfeit cosmetics industry was valued at $75 million in 2021 (roughly 8% of total sales).
Although some shoppers will actively choose counterfeit products due to their lower price point and higher availability, the health risks for them are great. Counterfeit cosmetics can cause several serious health concerns due to the ingredients used. An investigation by the Federal Bureau of Investigation (FBI) found that to keep prices low, manufacturers of fake products substitute key ingredients for chemicals such as lead, mercury and arsenic. Despite these risks, the rise of digital marketplaces and social media influencers has made it easy for buyers to become unknowing victims of counterfeit cosmetics.
Fake cosmetics are not only hazardous to the consumer but also to brands. The difference between counterfeit and authentic products is becoming harder to distinguish, with packaging replicating the authentic product almost identically. Counterfeit protection systems such as labels, QR codes and holographic tags can all be copied, cloned or faked. This opens the way for consumers to buy counterfeit makeup, perfumes or skincare, believing they are the purchasing from a reputable seller, leading to dissatisfaction with the overall brand due to the poor product quality.
With cosmetic manufacturers feeling the frustrations of counterfeit products, the industry is looking to new, innovative counterfeit solutions to provide brands, manufacturers, and customers with the protection they deserve. That’s where our Q-ID® Optical tags come in.
Unlike other anti-counterfeiting solutions, our Q-ID® Optical solution utilises the inherent strength of quantum material. Quantum material is uniquely random in nature at an atomic level, making it scientifically impossible to clone or copy (we call it a quantum fingerprint). By imprinting cosmetics with our tags, we provide an invisible, unbreakable method of cosmetic product protection and verification.
Once seamlessly integrated into the packaging, components or the product itself, our quantum solution can be authenticated in a matter of seconds using a standard smartphone camera. This not only allows for authentication internally, for example throughout the supply chain, but also empowers consumer-led authentication, as customers can verify the identity of their purchase almost instantly.
The loss felt by the cosmetics industry due to these counterfeits is well documented. More must be done to prevent criminals from profiting off genuine products. Protect your brand, your revenue and your consumers with Quantum Base’s unbreakable Q-ID®s.
To learn more about how our anti-counterfeit solution can help your cosmetics brand, get in touch today, and help us create a world without fakes.