security > e-book Inks and Pigments in Security Applications this e-book examines inks and pigments used in security applications, trends in the security-printing market, as well as drivers and challenges to security printing. www.PIrA-InternAtIonAl.com Inks and Pigments in Security Applications Pira Business Intelligence linda m. casatelli The worldwide authority on the packaging, paper and print industry About viewing this ebook supply chains Published by this document will attempt to open in established in 1930, Pira provides strategic and technical consulting, testing, intelligence full page viewing mode by default for a Pira International Ltd and events to help clients gain market insights, identify opportunities, evaluate product more immersive reading experience and to cleeve road, performance and manage compliance. we offer a wealth of experience, helping your maximize screen space. 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Spear, Jr. [email protected] Customer services manager Denise Davidson [email protected] t +44 (0)1372 802080 www.PIrA-InternAtIonAl.com table of contents 4 Executive Summary 4Biometrics 4Identity cards Introduction 4Digital watermarks/Fingerprinting 4Driving licenses market trends 4DoVIDs 4Visas Security technologies 4radio-frequency Identification 4electronic Visas Security Inks and Pigments 4Security Inks and Pigments Security Printing/Deposition Processes 4Birth certificates Security Printing/Deposition Processes 4Ink and Pigment Suppliers in the Introduction tickets Substrates Security Area letterpress 4travel tickets end-Use Applications 4SIcPA lithographic Printing event tickets outlook 4Sun chemical 4offset lithography lottery tickets 1 6 4Smart cards 4Dry offset 4Substrates and Printing Processes 4rainbow Printing 4taggants 4radiation reactive Inks 3 4common Impression Presses Introduction and Methodology Screen Printing Outlook for Security Inks and Pigments objective Gravure Printing Introduction Scope Intaglio Printing emerging Ink Formulations methodology Security Ink and Pigment Technologies Hot Foil Stamping 4optically Variable magnetic Inks Definitions Introduction Digital Printing 4Photonic Inks 2 Intaglio Inks Flexo Printing 4Inks for Brand Protection optically Variable Inks Substrates emerging Printing technologies 4machine-readable optically Variable Inks 4Security Paper 4laser Ablation 4cholesteric Pigments 4Plastic cards 4ctP of Intaglio Plates (ctIP) Security Inks and Pigments Market machine readable 4Polymer Banknotes Biometrics Introduction magnetic Inks 5 4All-in-one ID documents market trends 4metameric Inks Summary 4overcapacity 4metameric optically Variable Ink 4cost considerations luminescent, Phosphorescent and Fluorescent Inks List of Tables and Figures 4Just-In-time (JIt) Delivery Photochromic Inks End-use Applications 4move to Shorter Production runs Pearlescent Pigments Introduction 4expanded Standardization Photonic Ink Brand Protection 4Pressure to reduce waste Specialized Inks 4Pharmaceuticals 4expansion of Digital Print 4Security Scratch-off Ink 4Digital Piracy 4Diversification of Skills and capabilities 4erasable Inks Financial 4expanding connection between Documents 4Solvent/chemical-reactive Inks 4Banknotes and Databases 4Fugitive Ink 4credit and Debit cards 4Growth in Digital Asset Protection 4Penetrating Inks 4emV cards 4customization/personalization of Printing 4Janus effect Ink 4Bank checks 4Security Printing on manufacturing lines 4coin-reactive Inks General 4end-user Digitally Printing Documents taggants and markers 4tax Stamps 4Growth in tamper-evident Packaging 4DnA-encoded Inks 4Postage Stamps 4Increased Use of novel Print Processes and 4Particulate Inks Identification oVDs thermochromic Inks 4Passports Security technologies UV/Ir Fluorescent Pigments 4travel cards www.PIrA-InternAtIonAl.com security > e-book > inks and pigments in security applications Executive Summary Introduction • C ustomization and personalization of printed the mission of Pira International defines security printing as ‘any printed matter documents and packaging security printing that has additional features included or added to it, with the • S ecurity printing on manufacturing lines has always been to purpose of confounding the illicit efforts of people to alter it by provide the highest forgery or copying, or to use or distribute it in an unauthorized Security Technologies degree of security manner.’ this includes a range of products, from high-security the ultimate driver in security printing is the need to develop printing on banknotes and other official documents to commercial products to avoid the sophisticated, ever-evolving threats from at as low a cost as products and packaging. the mission of security printing has counterfeiting and piracy. while this e-book is concerned primarily possible. always been to provide the highest degree of security at as low a with security inks and pigments, the means to that end may cost as possible. even with the global economic recession, security well be competitive technologies other than printing. while an printing has remained fairly stable, with growth forecast at just over important element in security printing, inks only represent a small 11% per year for the next five years. portion of that market. However, an important note to remember when talking about security printing is that seldom—if ever—is Market Trends only one ink or one method used alone. Security is usually a result that forecast is derived from several factors: population growth, of layers of technology and processes used in combination to rising concerns over terrorist threats, and the increase in identify provide the most secure document possible. So while there are theft. on the other hand, security printing faces many of the new technologies being introduced, it is doubtful that they will challenges that are pressuring the general printing industry. these replace existing methods, but rather will be used to complement or trends/market drivers include: supplement those technologies already in place. • Global competition and overcapacity • Increasing cost considerations FIGURE 0.1 S hare of global market for security printing by technology • Move to shorter production runs type, 2011 (%) • Just-in-time delivery Security Inks and Pigments • Expanded standardization Security inks were the first method of printing secure documents • Pressure to reduce waste CLICK TO VIEW and have played a valuable role throughout the ages. within the • Expansion of digital print ink and pigment area of security printing there are multiple options • Diversification of skills and capabilities available to the security printer. these security inks and pigment • Increasing link between documents and databases technologies include: intaglio inks, cholesteric pigments, fluorescent • Growth in digital asset protection 4 CHAPTER ES 1 2 3 4 5 6 TOC www.pira-international.com security > e-book > inks and pigments in security applications Executive Summary pigments, magnetic inks, metameric inks, machine-readable inks, the traditional applications such as identity documents are now optically variable inks, pearlescent pigments, photochromatic inks, smart cards, which do not use security paper. photonic inks, thermochromic inks, taggants and markers and ultraviolet and infrared pigments. only a few companies supply End-Use Applications inks and pigments for the security market. these include: SIcPA, Pigments and inks are used for a variety of end-use applications in the dominant player; Sun chemical, luminescence in the UK; the security-printing area. these include: International Ink company; Huber Group in Germany; Dainichiseika • F inancial: banknotes, credit/debit cards, checks, color & chemicals in Japan; and wikoff color. traveller’s checks, bonds and share certificates • I dentity: passports, visas, driver’s licenses and birth Security Printing/Deposition Processes certificates Security printing uses many of the printing processes also used • T icketing: travel, events, lottery, transport for graphic arts printing. Due to global overcapacity, the printing • B rand protection: commercial products and packaging process segment of security printing is expected to have only • G eneral: postage, excise and tax stamps moderate growth—around 7.4%—per year over the next five years. within the security area, there is a shift from printed to electronic FIGURE 0.2 End-use applications for security printing (2011) security, as well as a shift from paper to plastic substrates. Similar to conventional printing applications, with security printing, the choice the security-printing market is forecast to grow by approximately of process depends on the volume and nature of the product being 11.3% per year for the next five years. Identity documents have printed. the printing processes used for security printing include: the greatest potential for growth, with an estimated growth CLICK TO VIEW letterpress, lithography—both wet and dry—offset; screen; gravure; approaching 20%. flexo; intaglio; digital printing; hot foil stamping and laser ablation. the brand-protection market is driven by the global counterfeiting Substrates problem, with pharmaceuticals a prime target because of the high Substrates are the support layers, or carriers, upon which inks are cost. Digital piracy is also growing; the key weapons in this area printed. components such as threads can be embedded; devices for brand owners are digital mechanisms to identify and track such as holograms can be attached; and layers such as laminates individual files through the distribution chain, such as digital can be applied. In general, there are three substrate groups: fingerprinting and digital watermarking. security paper, plastic cards and polymer films. lower growth for security paper—around 4%—is expected, mainly because many of the financial sector, which includes banknotes, bank checks and 5 CHAPTER ES 1 2 3 4 5 6 TOC www.pira-international.com security > e-book > inks and pigments in security applications Executive Summary plastic payment cards, is expected to experience accelerated growth the ticketing market covers travel tickets for transportation by air, of about 18%. the global recession created an increased demand ground and sea; admission tickets for events and entertainment for banknotes. other factors spurring growth are the increased activities; and lottery tickets. with the introduction of contactless frequency for updating banknote designs to incorporate new and smart card–based ticketing, these new technologies are security features; and increased demand as countries develop. replacing paper tickets. credit and debit cards have reached the saturation point in Outlook developed countries, but their use is expanding in emerging traditionally, security-printing operations relied on specialized nations. the prepaid card sector is expected to grow, and the printing skills, such as intaglio and rainbow-color offset lithography, introduction of contactless cards is expected to infuse the market coupled with unique substrates, including features such as with some new growth. the global market for checks is declining as watermarks, along with strict security controls over the printing more and more transactions are done online. facilities and distribution channels. In the past decade, innovations in high-color copiers and digital scanning and printing have tax stamps comprise a significant share of the security print market changed the methods the security industry employs to combat in terms of units, equal to banknotes even though the individual counterfeiting. stamp is a fraction of the size. the security on tax stamps is increasing because governments are losing much needed revenue new security devices have been developed, as well as the addition due to counterfeiting. on the other hand, in our increasingly digital of optical effects that cannot be duplicated using conventional times, the use of postage stamps is declining. ink-based processes. optically variable inks, specialty threads, plastic substrates, holograms and DoVIDs have all contributed to currently, the personal ID sector is one of the largest end-use markets the protection of security documents against digital counterfeiting with an 18% share, and it also has the highest growth potential or ‘digifeiting.’ this trend is likely to continue into the future with (approaching 20%) for the next several years of all end-uses for security technologies such as micro-optics, moiré magnification and laser print. the growth is due to a higher volume of such documents being ablation. Increasingly important, too, are 2D bar codes, rFID and produced than previously, and the expanding use of new electronic or biometrics. Perhaps most significantly, there is increased use of e-documents, which introduce biometric technologies and are more the Internet to link physical documents, objects and individuals expensive than older-style identity documents. Increased concerns to online databases to provide even more control over the about terrorism are pushing the expansion of such e-documents, which manufacture, distribution and use of security print. However, are more robust and more difficult to counterfeit or forge. security printing is still about complementing older technologies 6 CHAPTER ES 1 2 3 4 5 6 TOC www.pira-international.com security > e-book > inks and pigments in security applications Executive Summary with innovations, rather than completing substituting new ones. As such, change will take time, and the inks and pigments sector for security printing is forecast to grow by almost 8% for the next several years. 7 CHAPTER ES 1 2 3 4 5 6 TOC www.pira-international.com