Latest news: cybersecurity in packaging 

The substantial increase in funding underscores the increasing trust in the UK's cyber security sector, which bodes well for UK-based packaging companies that are eager to increase their security.  

UK-registered cybersecurity firms have successfully raised over £1bn ($1.26bn) in external investment through 84 deals, according to the latest report by the Department for Digital, Culture, Media and Sport (DCMS). 

This significant influx of funding highlights the growing confidence in the UK’s cybersecurity sector. Notable companies, such as Immersive Labs and Tessian, secured substantial investments, contributing to the industry’s growth. 

In addition to the investment success, the report reveals that the UK’s cybersecurity industry has experienced a surge in job creation. More than 6,000 new positions have been added to the existing 50,000-strong cyber workforce, bringing the total number of people employed in the sector to 52,700. 

This expansion offers numerous opportunities for packaging companies across the UK to take advantage of the expertise on offer within the cyber industry. 

IBM Threat Index reveals the packaging sector accounted for one in four cyberattacks in 2022, topping the list for second year running.  

Cybersecurity is becoming an increasingly critical issue in the packaging industry amid incidents such as the ransomware attack on US company West Rock in 2021.  

Packaging has retained its not-so-coveted status as the most cyberattacked industry, according to the IBM Security Threat Intelligence Index 2023.  

In 2022, the industry was subject to 24.8% of cyberattacks globally, followed by financial and insurance with 18.9%.  

This marks the second year in a row where the packaging industry has topped cybercrime charts. Implementation of smart technologies on processing lines, assembly lines and end-of-line packaging has enabled greater efficiency, but it has also exposed new areas of vulnerability.  

GlobalData associate analyst Shabnam Pervez explains: “Cybersecurity grows ever more important as packaging companies digitalise supply chains – but the sector’s cybersecurity adoption is disproportionate with this rate of digitalisation.” 

Without stringent cybersecurity measures, hackers can access virtually stored data in digitalised supply chains. Of all types of cybercrime, extortion was most prevalent due to the limited tolerance for downtime in the packaging industry.  

Despite the high-level risk of cyberattacks, packaging companies remain unprepared for security breaches. 87% have a disaster plan in the event of a cyber breach, but only 37% have tested the plan, according to a survey by the Packaging Machinery Manufacturers Institute (PMMI).  

Sunak’s budget strategy for semiconductors is expected to impact packaging and manufacturing companies.  

IBM data shows the packaging sector is subject to the highest rate of cyberattacks. On 19 May, the UK government announced that it will invest up to £1bn ($1.3bn) into the semiconductor sector throughout the next decade.  

Semiconductors are used in most electronic devices, from refrigerators to smartphones, as well as future technologies including 6G, artificial intelligence and cybersecurity systems.  

However, a global semiconductor shortage driven in part by the pandemic and US-China trade conflict made it increasingly difficult to manufacture cybersecurity hardware.  

In 2022, the packaging sector accounted for 24.8% of all cyberattacks – the highest share of all analysed sectors. From spear-phishing to ransomware, the semiconductor shortage has had a debilitating impact on packaging companies. 

GlobalData associate analyst Shabnam Pervez outlined what this damage entails: “Cyberattacks often translate to extended periods of downtime during which companies track where the breach came from, and reboot defence systems to avoid further attacks. Costs incurred by confidential data breaches are not just financial, but reputational and can lead to long-term failure”.  

With global cybercrime projected to grow by 15% per year and inflict damages totalling $10.5 trillion annually by 2025, it is crucial that packaging companies address the threat cyberattacks pose.  

Increased investment into cybersecurity resources is expected to address the packaging industry’s vulnerability, but only alongside genuine prioritisation by business leaders.   

Adaptive packaging companies are already taking threats to cybersecurity seriously. Sentiment polls conducted by GlobalData found that, in response to: “when will the following technologies start to tangibly disrupt your industry?”, 58% of business leaders said cybersecurity already was, compared to 57% for cloud computing, 42% for IoT, and 38% for AI.