Security Paper Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Hybrid Paper, Watermark, Hologram, Thread & UV Fiber, Others), By Application (Currency Notes/Bank Notes, Passport & Visa, Identity Card, Legal & Government Documents, Certificate, Bank Documents, Medical Report & Prescription, Transportation & Logistics, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 19.81 Billion
CAGR (2026-2031)	6.73%
Fastest Growing Segment	Medical Reports & Prescription
Largest Market	North America
Market Size (2031)	USD 29.28 Billion

Market Overview

The Global Security Paper Market will grow from USD 19.81 Billion in 2025 to USD 29.28 Billion by 2031 at a 6.73% CAGR. Security paper is a specialized substrate reinforced with protective elements such as watermarks, embedded threads, and fluorescent fibers, utilized primarily for the production of banknotes, passports, and official certificates. The market is fundamentally supported by the sustained demand for physical currency in developing economies and the critical necessity for fraud-resistant documentation to safeguard national security. These functional requirements act as primary drivers distinct from broader technological trends, ensuring a baseline need for physical authentication mediums. According to the European Central Bank, in 2024, approximately 554,000 counterfeit euro banknotes were withdrawn from circulation, underscoring the persistent operational requirement for high-integrity security substrates to combat financial fraud.

However, a significant challenge impeding market expansion is the rapid global acceleration toward digital payment ecosystems and cashless societies. As governments and financial institutions increasingly promote electronic transactions and digital identification systems for their efficiency and traceability, the long-term volume requirement for physical banknotes and paper-based documents faces potential contraction, thereby constraining growth opportunities for security paper manufacturers.

Key Market Drivers

The sustained demand for high-security banknote circulation constitutes a primary driver for the market, countering the cashless transition narrative. Central banks remain committed to maintaining physical currency availability to ensure economic stability, prompting continuous orders for durable, fraud-resistant substrates. This resilience is quantifiable; according to the Federal Reserve Board, September 2025, currency in circulation increased by 0.8 billion notes between June 2024 and June 2025, demonstrating the persistent expansion of the physical monetary supply. Manufacturers are securing substantial contracts to meet this requirement, signaling long-term industrial confidence. According to Koenig & Bauer, March 2025, in the 'Annual Report 2024', the company's order backlog increased by 14.1% year-on-year to €1.04 billion, reflecting robust industrial activity underpinning the broader security printing sector.

The expansion of the global tourism industry is simultaneously propelling the production of passports and visas, driving demand for high-security paper. As cross-border travel accelerates, governments are upgrading travel documents with advanced substrates that support embedded electronics and biometric features to enhance border control efficiency. This recovery has led to record-breaking administrative outputs for identification materials. According to the U.S. Department of State, January 2025, in the 'Setting Records in U.S. Passport and Visa Services' report, the department confirmed the issuance of approximately 24.5 million passport books and cards in fiscal year 2024, setting a new annual record. Such volume growth necessitates a steady supply of specialized tamper-proof paper, directly reinforcing market demand.

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Key Market Challenges

The rapid global acceleration toward digital payment ecosystems creates a substantial impediment to the expansion of the security paper market. As governments and financial institutions prioritize electronic transactions for their superior efficiency and traceability, the systemic reliance on physical currency is diminishing. This transition effectively lowers the circulation volume and replacement frequency of banknotes, which serves as the primary revenue stream for security paper manufacturers. Consequently, the market faces a structural contraction in demand that operates independently of the functional quality or security features of the substrates provided.

This decline in physical currency usage is empirically evident in major economies driving the cashless shift. According to UK Finance, in 2024, the total volume of cash payments in the UK fell to 6 billion transactions during 2023, representing a 7 percent decrease compared to the previous year. This downward trend in banknote utilization directly translates to reduced procurement orders for security paper mills. As digital adoption continues to penetrate both developed and developing markets, manufacturers must contend with shrinking production volumes and the long-term risk of capacity underutilization.

Key Market Trends

The Adoption of Hybrid Paper-Polymer Composite Substrates is emerging as a dominant trend, effectively bridging the gap between traditional cotton paper and full polymer solutions. This substrate evolution addresses the critical need for extended circulation durability while preserving the integration of sophisticated security elements like embedded threads and watermarks, which are often compromised in purely plastic alternatives. Central banks are increasingly favoring these composites to minimize replacement frequency and environmental impact without sacrificing forensic security. According to Giesecke+Devrient, July 2025, in the 'A greener banknote life cycle' report, the company's Hybrid Green Banknote substrate reduces the use of plastic by 86% compared to standard polymer banknotes while maintaining an equivalent operational lifespan, highlighting the efficiency gains driving this technological shift.

Simultaneously, the Development of Eco-Friendly and Sustainable Paper Materials has become a central priority for manufacturers responding to global environmental mandates. This trend involves the transition toward organic renewable fibers, such as certified cotton and alternative crops, alongside the implementation of energy-efficient production processes to decarbonize the supply chain. Security paper mills are aggressively optimizing their resource consumption to align with the net-zero commitments of issuing authorities, thereby transforming sustainability from a corporate social responsibility metric into a competitive operational requirement. According to Louisenthal, January 2025, in the 'Q&A: Banknote Sustainability' article, the firm's Green LongLife substrate now achieves a bio-based carbon content of over 85%, demonstrating the industry's capability to deliver high-security materials that substantially lower the ecological footprint of physical currency.

Segmental Insights

Market analysis identifies Medical Reports & Prescription as the fastest-growing segment within the Global Security Paper Market. This accelerated expansion is primarily driven by the escalating prevalence of prescription fraud and medical identity theft, which compels healthcare providers to secure sensitive documentation. In response, regulatory bodies such as the Centers for Medicare & Medicaid Services (CMS) have enforced stringent mandates requiring the use of tamper-resistant features on prescription pads to prevent unauthorized duplication or alteration. These compliance requirements have necessitated the widespread adoption of security paper, thereby fueling substantial demand across the healthcare sector.

Regional Insights

North America holds a dominant position in the global security paper market, driven by a rigorous regulatory landscape that prioritizes document integrity. The United States Bureau of Engraving and Printing plays a central role in this ecosystem, generating significant demand for high-grade materials used in currency and official federal certification. Additionally, strict government mandates regarding tamper-evident passports, visas, and legal records compel the widespread adoption of advanced protection technologies across the region. This sustained focus on combating fraud and identity theft ensures North America’s continued leadership in the development and consumption of security paper products.

Recent Developments

• In July 2025, Landqart AG announced the official launch of the new Namibian Dollar banknote series, specifically the NAD 10 and NAD 20 denominations, utilizing its Durasafe substrate. The Bank of Namibia introduced these notes to the public during a ceremony in Windhoek, highlighting the substrate's advanced composite structure which fuses security paper with a polymer core. This material choice was selected to provide superior durability and enhanced security against counterfeiting for the widely circulated denominations. The project involved a close collaboration with the currency printer De La Rue, demonstrating the successful deployment of robust paper-polymer composite technologies in national currency upgrades.
• In May 2024, Crane NXT completed the acquisition of OpSec Security, a global leader in brand protection and authentication solutions, for approximately $270 million in cash. This strategic move expanded the company's capabilities in both physical and digital authentication, complementing its existing expertise in currency security. The integration of the acquired business was designed to accelerate growth in the authentication market, addressing the rising challenges of counterfeiting and piracy. By combining portfolios, the company aimed to deliver a comprehensive suite of technologies to secure and detect valuable assets for governments, financial institutions, and commercial brands worldwide.
• In May 2024, Louisenthal received the International Association of Currency Affairs (IACA) award for its Green LongLife banknote substrate in the "Best New Banknote Feature, Product or Process" category. This innovative product was recognized for its sustainable composition, which incorporates renewable materials such as organic cotton and sugar cane while maintaining high security standards. The substrate features a dirt-repellent coating derived from bio-based content, significantly extending the circulation life of banknotes compared to traditional cotton paper. This development underscores the company's commitment to reducing carbon emissions and plastic usage in the cash cycle without compromising durability or design flexibility.
• In February 2024, the Fedrigoni Group announced the acquisition of certain assets of Mohawk Fine Papers, a United States-based manufacturer of specialty papers. This transaction integrated the acquired manufacturing and converting facilities into the Fedrigoni Special Papers division, effectively strengthening the company's industrial footprint in North America. The deal followed a strategic manufacturing partnership established between the two entities in 2022 and allowed the Group to produce high-value specialty papers directly in the region. This expansion was aimed at enhancing service to local customers and supporting nearshoring strategies to mitigate supply chain risks while broadening the distribution of their respective product portfolios.

Key Market Players

• Giesecke+Devrient Currency Technology GmbH
• Fedrigoni Group
• Infinity Security Papers Limited
• Ceprohart SA
• Drewsen Specialty Papers GmbH & Co. KG
• Simpson Security Papers
• Domtar Corporation
• A1 Security Print Ltd
• Papierfabrik Louisenthal GmbH
• Ciotola SRL

By Type	By Application	By Region
Hybrid Paper Watermark Hologram Thread & UV Fiber Others	Currency Notes/Bank Notes Passport & Visa Identity Card Legal & Government Documents Certificate Bank Documents Medical Report & Prescription Transportation & Logistics Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Security Paper Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Security Paper Market , By Type:

• Hybrid Paper
• Watermark
• Hologram
• Thread & UV Fiber
• Others

• Security Paper Market , By Application:

• Currency Notes/Bank Notes
• Passport & Visa
• Identity Card
• Legal & Government Documents
• Certificate
• Bank Documents
• Medical Report & Prescription
• Transportation & Logistics
• Others

• Security Paper Market , By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE