Increased use of cash/coin deposit bags and pharmaceutical distribution bags noticed across the globe
Our consumer survey of end users of security bags reveals that consumers seem to be satisfied with cash/coin deposit bags as these meet the basic needs of most customers. However, in the forthcoming years, strap bags and pharmaceutical distribution bags are likely to gain traction, owing to the tamper evidence feature offered by these bags. Most of our survey respondents seem to be inclined towards the use of cash/coin deposit bags owing to the convenience of use in banks and financial institutions. The healthcare industry has opened its doors to pharmaceutical distribution bags in the last few years and it is anticipated that these bags will soon become popular with consumers of security bags. Other security bags such as card & dice bags are not very popular owing to the fact that these are largely used in casinos, and casinos are banned in certain countries. Evidence bags are chiefly used by government agencies and are related to public safety.
Key survey findings pertaining to the application of security bags
Our survey reveals that tamper evidence, transparency, and price point are the prime most considerations of consumers when choosing security bags. This might explain the growing popularity of strap bags and pharmaceutical distribution bags. However, cash/coin deposit bags will continue to remain a consumer favourite, as is evident from the immensely high market share (about 70%) likely to be held by this segment in the current year 2017 and by the end of the forecast period in 2027. In terms of CAGR, the cash/coin deposit bags segment and the strap bags segment will stand neck-to-neck at 8.9%. The other consumer favourite – pharmaceutical distribution bags – will likely hold about 10% market share during the forecast period and take the second place in terms of CAGR, registering a good revenue growth at 8.7% during the forecast period. Fighting for second place in terms of CAGR is also the card & dice bags segment, projected to grow at 8.7% CAGR in terms of value over the forecast period.Our analysis of the global security bags market reveals a very positive market scenario of the industry during the forecast period. With an estimated market valuation of slightly more than US$ 300 Mn in 2017, the global security bags market is projected to reach a market value in excess of US$ 700 Mn by the end of 2027, attributed to a CAGR of 8.8% during the decadal study. When we consider volume, the global security bags market is estimated to be pegged at about 24,000 tonnes in 2017 and will expand at a CAGR of 7.9% to reach about 52,000 tonnes towards the close of 2027.
Several dynamics impact the growth of the global security bags market
At the outset, a robust growth in courier and logistics services has been observed across the globe. As this industry utilises security bags to a great extent, this automatically becomes a key growth driver for the global security bags market. Furthermore, a large number of business houses necessitating cash-in-transit has also augmented the adoption of security bags, thereby fuelling market growth. A steady growth in the banking sector across the world creating increased demand for security products is another key market driver.
The market is not devoid of challenges
Advancements in technology and the changing face of the global industrial ecosystem poses certain challenges to every market, and the global security bags market is no exception. A growing consumer shift towards digital payments will restrict the scope of application of security bags. Further, consumers prefer cheaper packaging of security products and this might hamper the adoption of highly priced security bags, thereby restraining market growth to some extent.
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