Security Paper Market - Global Industry Insights, Trends, Outlook and Forecast 2025

Security paper is a paper which constitutes features that help qualify and identify a document as authentic or original. The use of security paper exemplifies the importance of a document and helps in distinguishing between authentic and counterfeit documents. It is widely used for printing currency, legal, and government documents.

Counterfeiting of documents and currency has augmented over the recent past, resulting in major losses being incurred by companies, governments and individuals. This has increased the demand for the development of various security features, with security paper as the most significant. However, growing digitization in the developed markets emerging economies, which ensures expeditious authenticity of documents, is a major challenge faced by the security paper market.

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Security Paper Market Taxonomy
On basis of -security feature, the security paper market is segmented into the following:
Hybrid Papers
Watermarks
MOLD
Fourdrinier
Others
Holograms
Threads
Security
Embedded
CBS1
UV Fibers
Tear Resistant
Heavy Stock
Micro-printing
Others

On basis of application, the security paper market is segmented into the following:
Currency
Legal Documents
Government Documents
Certificates
Identity Cards
Cheques/Checks
Stamps
Others

The hybrid papers make use of inks, threads, and fibers to help distinguish them from ordinary paper. Other security features such as watermarks and holograms are used to minimize the risk of counterfeiting. Tear resistance, threaded paper, UV fibers are used to help withstand wear and tear of documents that require longer lifespan. Standard security papers have a multitoned watermark and is made using cotton, pulp and plastic. This paper is widely used for passports, licenses, tickets, vouchers, vehicle papers, policies, and excise seals. TonerFix security paper is specifically used for laser printing, and maintains the clarity of adhesive tapes Tonefix papers are used for checks, tickets, vehicle papers, contractor ID cards, and transport documents. JetFix security paper, suitable for inkjet printing offers excellent film adhesion and immediately ink absorb, without any smearing. Color pigments are deeply embedded in this paper, making it useful for ID cards, ID papers and visas. The largest application of security paper is currency, which employs multiple security features in the same paper. With growing counterfeiting activities, demand for improved security features have increased.

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Security Paper Market Outlook
Asia Pacific is the largest market for security paper, as the largely populated countries –India and China are present here. The use of security paper across all applications is swiftly increasing in these countries, with currency printing being the largest application.  With increasing population and strong economic growth, the security paper industry in Asia Pacific, is expected to flourish over the forecast period. North America is the second largest market for security paper. The US dollar is the world’s most used reserve currency and the most traded currency in the foreign exchange market.
Europe is a shrinking market for security paper due to increased digitization in both, government and private dealings. Moreover, use of plastic currency i.e. credit and debit cards has reduced demand for paper currency. Sweden is poised to become the first country to shift to completely digitized currency system.

Africa is estimated to be the significant market of security paper, as low income groups tend to use paper currency due to lack of bank accounts and stable income sources. The Middle East, despite having high public digital penetration lags in business and the surge in digitized government affairs is projected to negatively impact the security paper industry.

Latin America is witnessing slow growth due to political and social instability in many countries. This has resulted in an economic slowdown in the region, hindering growth of the security paper industry as well.

In 2016, the demonetization drive in India was a major event for the security paper industry. Around 84% of India’s currency was stripped of its status as legal tender and was reprinted. The reprinted currency included new design and added security features. This enabled immense growth of the security paper market in the country. Major players in the security paper market are China Banknote Printing and Minting Corporation, Ciotola S.R.L., Document Security Systems, Inc., EPL House for Security Printing, Security Paper Limited, Sequana Group, De la Rue plc, Giesecke & Devrient, Fedrigoni Group, and Goznak.

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