OUR SOLUTION FOR COSMETIC PRODUCTS
PROTECTING THE AUTHENTICITY OF COSMETICS
MAIN ISSUES AND PAIN POINTS IN THE COSMETIC INDUSTRY
COMBATING COUNTERFEITING, GREY MARKETS, AND REGULATORY PRESSURE IN THE COSMETICS INDUSTRY
The cosmetics industry operates through complex global supply chains involving ingredient suppliers, contract manufacturers, distributors, retailers, and online marketplaces. This fragmentation creates significant risk around product authenticity, safety, and regulatory compliance. Brands face growing exposure to counterfeiting, gray market diversion, and unauthorized relabeling, particularly in eCommerce channels. At the same time, increasing regulatory scrutiny, recall obligations, and consumer safety expectations require stronger batch-level and unit-level traceability. When failures occur, the result is often costly recalls, reputational damage, loss of consumer trust, and long-term impact on brand value and market position.
MAIN ISSUES IN THE COSMETICS INDUSTRY
- Limited visibility across global ingredient sourcing, contract manufacturing, and distribution networks
- High exposure to counterfeit, diluted, and relabeled products entering retail and online channels
- Gray market diversion across regions and pricing tiers, undermining brand and channel control
- Difficulty verifying product authenticity at retail, fulfillment centers, and resale platforms
- Increasing regulatory pressure around ingredient disclosure, safety testing, and labeling compliance
- Compliance risks related to FDA, EU, and international cosmetic regulations
- Gaps in batch, lot, and unit-level traceability
- Limited ability to isolate affected products during recalls and safety investigations
- Product safety risks from contaminated, expired, or improperly stored goods
- High costs associated with recalls, enforcement actions, and channel audits
- Revenue loss from unauthorized discounting and diverted inventory
- Long-term brand damage following safety incidents or counterfeit exposure
MAIN ISSUES FOR THE
CONSUMER
- Difficulty confirming whether products are genuine, especially online
- Fear of using counterfeit or contaminated products on skin and hair
- Concerns about ingredient safety and product quality
- Reduced confidence in marketplace and resale purchases
- Confusion around expiration dates and batch information
- Frustration when brands cannot verify authenticity quickly
- Risk of allergic reactions or adverse effects from fake products
- Lower trust in brand reputation and product claims
ONE OF OUR SOLUTIONS FOR COSMETICS INDUSTRY
PROTECTING COSMETICS AGAINST COUNTERFEITING
SOPHISTICATED SECURITY SEALS FOR PREMIUM COSMETICS
We understand the needs of the cosmetics industry. From glossy labels with shimmering rainbow foils to fully transparent labels with an impressive opening effect, our security labels fully meet the visual standards of the cosmetics sector.
HIGH-LEVEL PROTECTION WITHOUT RESIDUE
NON-RESIDUE SECURITY SEALS FOR RELIABLE PRODUCT PROTECTION
Cosmetic packaging requires security without compromising elegance. Securikett’s non-residue seal delivers just that – protecting premium packaging while maintaining its pristine appearance. When removed, a hidden message is revealed, instantly exposing any tampering without leaving a trace of adhesive.
DETECTING PARALLEL AND GRAY MARKETS
DIGITALIZATION OF COSMETIC PRODUCTS
By integrating QR codes into the label, additional digital services can be linked to the product. These range from traceability solutions and gray market detection to consumer engagement.
BRAND PROTECTION CAN BE SUSTAINABLE
PAPER SEALS FOR SUSTAINABLE COSMETIC PACKAGING
Sustainable, eco-friendly packaging is becoming a key priority. Under the PPWR (Packaging and Packaging Waste Regulation) cosmetics companies are increasingly expected to adopt environmentally responsible solutions and reduce packaging waste. Paper-based security labels with a unique QR code offer a smart, all-in-one approach: they protect the product, support the circular economy by using a single material for the packaging, and replace printed inserts by providing additional product information digitally through the QR code.
USE CASE COSMETICS INDUSTRY
SPECIFIC APPLICATION OF A COSMETICS COMPANY
A global cosmetics company operating worldwide identified products on the market with altered original packaging, where additional or modified information had been added after production. The company also sought greater transparency and control over its distributor network in each country. At the same time, it aimed to expand into new markets with country-specific import control systems and government-mandated unique identification requirements.
THE ISSUE
PROBLEM
The client’s products were being sold on online shops at lower-than-authorized prices. The client sought to identify the responsible distributor. At the same time, there was an issue with counterfeiting in the Asian market. Subsequently, a change in the product packaging from plastic to paper was planned.
THE SOLUTION
PAPER VOID LABEL WITH UID AND HOLOGRAM
A paper-based tamper- evident seal with a hologram and a variable QR Code was created to secure the products against tampering or transfering. The hologram was chosen as a second security layer.
Codikett provides the digital security layer. Abnormal patterns (duplicate scans, wrong geography, unexpected timing) were highlighted. For new regulated markets, Codikett issues, maps, and manages government-required UIDs while maintaining one global product identity and a single data backbone. And also have the products ready for the new regulations that will be with us soon (DPP).
THE RESULT
GREYMARKET STOPPED
The company gained transparency across distributors and countries, and was able to detect and reduce grey and parallel market leakage. They were able to enter new markets with UID-based import control compliance without running multiple disconnected systems.
Stronger consumer safety and trust, improved distributor governance, faster market access, and lower regulatory and brand risk.
WE PROVIDE SAMPLE BROCHURES FOR SPECIFIC INDUSTRIES AND APPLICATIONS
GET YOUR FREE SAMPLES FOR COSMETICS INDUSTRY
ADDED VALUE FOR COSMETICS COMPANIES
What other possibilities/benefits are there?
- Operational insights: receive data on product movement, inventory, and regional demand. Optimize production, distribution and stock management.
- Reduce returns, complaints and potential liability from compromised products
- Integration with digital services: loyalty programs, promotions, product registration, etc.
FEEDBACK FROM OUR SATISFIED COSMETICS CUSTOMER
LET'S DISCUSS YOUR APPLICATION
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Book a free 30-minute consultation to discuss your specific requirements and explore the best solutions for your product security needs. Our experts are here to guide you and help you take the next step toward stronger brand protection.
