Integrated Security Packaging: A Strategic Response to Escalating Retail Crime

The UK retail sector is grappling with unprecedented levels of theft and violence, underscoring the urgent need for innovative security measures. According to the British Retail Consortium's (BRC) 2024 Crime Survey, the annual cost of retail crime, encompassing losses from theft and expenditure on crime prevention, surged to £3.3 billion (approximately $4.5 billion) in the year ending August 2023, nearly doubling from the previous year.​

As retail crime continues to climb, packaging is stepping up as a frontline defense. A new innovation from European packaging manufacturer Coveris enables greater control over shrinkage, supply chain efficiency, and safety.

Escalating Incidents and Financial Impact

The BRC's findings reveal a sharp increase in criminal activities:​

• Customer Theft: Incidents rose to 16.7 million, up from 8 million in the prior year, resulting in losses of £1.8 billion (approximately $2.4 billion).​
• Violence and Abuse: Retail workers faced over 1,300 violent or abusive incidents daily, totaling 475,000 incidents, including 41,000 violent assaults.​
• Crime Prevention Costs: Retailers invested £1.2 billion (approximately $1.6 billion) in measures such as CCTV, security personnel, and training, up from £720 million the previous year.​

Integrated Security Packaging: A Proactive Solution

Coveris' technology embeds RF security tags directly into packaging during production, offering a covert and tamper-resistant solution that aligns with existing electronic article surveillance (EAS) systems.​

Advantages of SourceTag Integration

• Shrinkage Reduction: By integrating security features at the manufacturing stage, SourceTag cartons deter theft effectively, particularly in high-risk categories like fresh meat and luxury goods.​
• Operational Efficiency: Eliminating the need for in-store tagging reduces labor costs and logistical complexities, allowing staff to focus on customer service rather than security measures.​
• Brand Integrity: The concealed nature of the security tags ensures that packaging aesthetics remain unaffected, preserving brand image and consumer trust.​

Alignment with ESG Trends in Packaging

The packaging industry is increasingly embracing environmental, social, and governance (ESG) principles, focusing on sustainability and ethical practices. The global market for sustainable packaging is projected to grow from $278.1 billion in 2023 to $391.1 billion by 2029, reflecting a compound annual growth rate (CAGR) of 6%.​

Key ESG Trends in Packaging

• Sustainable Materials: Companies are adopting biodegradable and recyclable materials, such as plant-based polymers and recycled content, to reduce environmental impact.​
• Circular Economy Initiatives: Efforts are underway to design packaging for recyclability and to implement take-back programs, minimizing waste and promoting resource efficiency.​
• Carbon Footprint Reduction: The industry is focusing on reducing carbon emissions through energy-efficient manufacturing processes and sustainable sourcing of raw materials.

Coveris’ SourceTag cartons offer a direct response to rising theft and operational inefficiencies. By embedding security into the packaging itself, retailers can reduce shrinkage, streamline in-store workflows, and eliminate the costs and inconsistencies of secondary tagging. As theft becomes more sophisticated and ESG targets more urgent, built-in security solutions like this will play an increasingly critical role in protecting products, people, and profit.