May 26, 2024
Consumer Product and Retail Market

Consumer Product And Retail Market Is Trending Towards Digitalization By Adoption Of Biometric Payments

The consumer product and retail market comprises products such as consumer electronics, apparel, packaged food & beverages, footwear, and cosmetics. Biometric authentication solutions are increasingly being adopted for secure payment processing in retail stores and online shopping portals. Biometric identification through fingerprint, iris, and facial recognition provides a convenient authentication method while ensuring a high level of security. The Global Consumer Product and Retail Market Size is estimated to be valued at US$ 24.21 Bn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the consumer product and retail market are IDEMIA, Iritech Inc., IrisGuard UK Ltd., BioEnable Technologies Pvt. Ltd., NEC Corporation, Aware Inc., Gemalto NV (Thales Group), Iris ID Inc., Princeton Identity Inc., HID Global, and EyeLock LLC. With the growing adoption of biometric payment methods across retail industries, the demand for biometric authentication solutions is increasing rapidly. Major retailers are partnering with biometric solution providers to roll out biometric payment options at their stores and online shopping portals. Furthermore, the regional expansion of key players operating in the market is fostering the global proliferation of biometric payment technologies in the retail sector.

The growing demand for convenience and security in payment processing is a major factor driving the adoption of biometric authentication solutions in retail stores and e-commerce portals. Customers prefer biometric verification over traditional passwords and pins due to the ease of use and enhanced security. This rising demand from consumers is compelling retail companies to invest in biometric payment infrastructure. Furthermore, the increasing penetration of online shopping is propelling retailers to implement biometric checks to address issues like digital identity theft and payment fraud.

With the growing global proliferation of biometric technologies, their implementation is witnessing a substantial rise across international retail markets. Major retailers are partnering with local biometric solution providers and payment gateways to launch biometric payment options in new geographies. Furthermore, the regional expansion of key global players is also boosting the adoption of biometric technologies for retail payments worldwide. The burgeoning international retail industry represents significant growth opportunities for biometric payment networks over the coming years.

Market Key Trends

One of the key trends gaining traction in the consumer product and retail market is the integration of multimodal biometric technologies. While traditional biometric modalities like fingerprints and iris scans are widely used, the future demands a higher level of security. Multimodal biometric systems verify identities by combining two or more biometric traits of an individual to authenticate payments. This reduces false acceptance rates and eliminates possibilities of identity thefts. With concerns around security continuing to rise, the adoption of multimodal biometric solutions is expected to witness significant growth in the consumer product and retail industry.

Porter’s Analysis

Threat of new entrants: New companies can enter this market easily as minimal investment is required for starting the business but established brands and dependence of customers to well known brands create entry barriers.

Bargaining power of buyers: Buyers have high bargaining power in this market as they have many alternatives available and substitutes. Buyers can easily switch to other brands based on quality and price.

Bargaining power of suppliers: Suppliers have low bargaining power as there are many suppliers for raw materials available and supply can be easily shifted from one supplier to another if the supplier increases the prices.

Threat of new substitutes: Substitutes like digital payments, e-commerce are increasing threat to traditional retail shops.

Competitive rivalry: Industry is dominated by top players and competition is very high between top brands to gain more market share.

Geographical Regions

North America accounts for the largest share in the consumer product and retail market in terms of value due to high disposable income and spending power of consumers in countries like US and Canada.

Asia Pacific is expected to be the fastest growing region during the forecast period mainly driven by expanding middle class population, rising income levels and growing spending power of consumers in emerging economies of India and China. Increasing brand awareness and international brands entering these developing countries will also fuel the market growth.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it