3 growth opportunities packaging wholesalers can prepare for right now

  1. Growing demand for security packing tape
  2. Regulatory compliance and public concerns
  3. Inventory shrinkage costs retailers billions every year
  4. Supply chain disruptions see no end in sight
  5. Implications for wholesalers
  6. There’s no time like the present

Growing demand for security packing tape

Demand for tamper-evident packaging, such as security packing tape, tamper-proof poly mailers and tamper-evident labels, follows the growth of the global anti-counterfeit packaging market, which is expected to record a CAGR of 12.5%, rising from US$118 billion in 2021 to US$342 billion by 2030. (source)

While security packing tapes are only a sub-set of that market, they provide an easy and cost-effective solution to ensure product safety and maintain a chain of custody. Like any tape, they can be applied on small boxes and containers, with the distinct difference in that they reveal a tamper-evident message such as OPENED or VOID when removed. This is why they are also called void-pattern tamper-evident tapes.

Regulatory compliance and public concerns

High demand from the cannabis industry is one of the major factors driving growth. But other sectors like food and beverages, OEMs in the automotive industry, as well as pharmaceuticals and healthcare are expected to boost demand as well.

Counterfeiting is increasing at an alarming rate in these industries and new more stringent industry regulations require a higher degree of authentication and tamper verification to protect goods while in-transit. This is especially the case since the pandemic heightened consumers’ awareness about the potential risks to their health and safety.

Inventory shrinkage costs retailers billions every year

According to the National Retail Federation (NRF), shrinkage cost the industry $94.5 billion in 2021 and it may cost even more in the years to come.

While shrinkage includes many types of loss, the NRF survey reveals it can be attributed to three main factors: external theft (37%) including organized retail crime, employee internal theft (28.5%), and process and control failures (25.7%).

Consequently, retailers and third-party logistics providers (3PL) are increasing their loss prevention budget. Most have already implemented a variety of technological solutions and they’re replacing their regular packing tape with security tape to reduce shrinkage in the warehouse.

Supply chain disruptions see no end in sight

Economists believe that the problems affecting the global supply chain will persist for quite some time.

Initially, companies tried to avoid shortages by stockpiling, but the situation is hardly sustainable as too much inventory ties up much-needed cash at a time when inflation is surging.

Given the current circumstances, protecting the goods in the warehouse and those that are still in-transit has become imperative.

Implications for wholesalers

As demand for security packing tape grows, success depends on your ability to work with reliable suppliers to get the right product at the right price.

To the untrained eye, any tape with a void message seems good enough. But, unless the tape leaves an imprint message when removed, it’s not a genuine security packing tape.

Understanding the different kinds of security packing tapes and choosing the right type of security tape matters because customers have performance expectations. If those expectations aren’t met, they’ll simply return their orders, and you’ll have to deal with the hidden cost of customer dissatisfaction.

Conversely, when you offer a popular product, you can maximize upsell and cross-sell opportunities. Each time one of your customers replenishes their stock of security packing tape, you’ll be able to suggest additional products relevant to their needs.

There’s no time like the present

Other wholesalers may not yet know that a product of this quality is available at this price point. Acting before your competition means you’ll have the chance to be the first to market this new item.

In any case, what can you lose by requesting a sample?

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