The global luxury packaging market size to cross over USD 21 billion by 2024, growing at a CAGR of 5% during the forecast period. The rising number of SKUs on retail shelves across the world is propelling the need for attractive and differentiative product materials in the global luxury packaging market. Relevant and distinguishing materials is one of the primary factors that helps improve brand identity in the global market. The increasing investment in the luxury packaging design, development, and specifications will help boost profitability. Innovative packing will enable the brands to attract the target consumer and can help to create a brand identity, integrate brand equity, and impact consumer decisions in the market. By creating multi-sensory wrapping that appeals to a range of senses such as touch, taste, sound, smell, and sight that helps companies to connect with their consumers and drive preference for their products. Luxury brands depend on packing to promote a picture of high quality, elegance, and sophistication for their products. Various technologies are employed to pack and label luxury goods to prevent counterfeiting and tampering in the market. The increasing focus on personalized packets and incorporation of unique techniques and innovations will help vendors compete in the market. The increasing awareness about sustainability practices and demographical and economic drivers is impacting the growth. The growth in consumer consumption and demand for luxury goods across emerging nations will contribute to the sales in the global luxury packaging market.
The exponential growth of the luxury goods industry that includes products such as cosmetics and fragrances, watches and jewelry, drinks, fashion, leather goods, tobacco, confectionery, and handbags will create new investment opportunities. The luxury brands using parceling to promote a picture of high quality, elegance, and sophistication for their products will augment the development of the market.
The introduction of new technologies that drive innovations will transform the global luxury packaging market. The increasing proliferation of 3D printing allows luxury packaging manufacturers to modify designs into products in hours and an exciting range of new products is expected to hit the shelves as brands experiment to further differentiate their products. The growing application of coding and marking applications that involves the printing of identification (ID) and quick response (QR) codes on products. These codes are designed to help consumers learn about the story behind a brand, which in effect, enhances the engagement, and enriches consumer experience. The use of digital printing on a broad range of textures and finishes of paperboard will allow luxury packaging companies to create innovative marketing and advertising campaigns in the global market. The introduction of anti-counterfeiting technologies that offer different types of protection including coding, tamper-evident packaging, track and trace, and other methods will promote brand security. The integration of label technologies such as holograms, security papers, taggants, and radio frequency identification (RFID) technology will revolutionize the global market.
LUXURY PACKAGING MARKET SEGMENTATION
This research report includes a detailed segmentation by
INSIGHTS BY MATERIAL
Introduction of high-quality paperboard grade and multi-ply boards will drive demand in the global luxury packaging market
The material segment is categorized into paper and paperboard, plastics, glass, metal, wood, and other. Paper and paperboard segment dominated the largest market share in 2018, growing at a CAGR of over 4% during the forecast period. The increasing use of a variety of substances to intensify the performance of substrates concerning heat resistance or peelability, grease proofness, or for improved printing, and finishing qualities is propelling the growth of this segment. The four main variety of substrates used in folding boxes are solid bleached board (SBB), folding boxboard (FBB), solid unbleached board (SUB), and white-lined chipboard (WLC). Paperboard is a durable, lightweight, versatile, smooth, and cost-effective solution that has applications across cosmetics, footwear, clothing, and food industries. Luxury brands are using high-quality paperboard grade and multi-ply boards for cosmetics, fragrance, gourmet food, wine, spirits, and entertainment products. The development of recyclable materials to promote sustainability will revolutionize the market.
Properties such as chemical inertness, recyclability, reusability, and sterility are enabling the use of glass materials across the industries. Metal offers advanced shaping performance and several decorative finishes, embossing and debossing where a shape or an image is depressed into a material in the global luxury packaging market.
INSIGHTS BY END-USERS
Digitalization, personalization, and customization is focus across cosmetics and fragrance sector
The end-user segment is classified into cosmetics and fragrance, premium alcoholic drinks, fashion and leather goods, gourmet food and beverages, watches and jewelry, confectionery, tobacco, and others. Cosmetics and fragrance are the fastest growing segment, at a CAGR of around 7% during the forecast period. Glass and fragrance are two of the most commonly used material. The increasing use of finishing techniques such as metallic finishes, as well as different colors, patterns, printing effects, and materials is propelling the growth of this segment. The trend of innovation has led to the introduction of a variety of pencil packing, brushes, and unique shaped applicators, roller balls, droppers, refillable, and reusable material in this sector. The increasing focus on digitization and the desire for more personalization, and customization will lead to the use of social media for promotion and marketing activities in the market.
The growing demand for premium alcohol brands as a result of increased disposable income across countries is driving the demand in the premium alcoholic drinks segment. Brands such as LVMH, Kering, and Richemont are the largest fashion and leather goods end-user.
INSIGHTS BY GEOGRAPHY
Western Europe to contribute over 79% revenues of luxury goods during the forecast period
The geography segment is divided into APAC, Europe, North America, Latin America, and MEA. Europe occupied the majority luxury packaging market share in 2018, growing at a CAGR of more than 4% during the forecast period. The increase in tourism-based purchasing is driving the growth of the European region. Countries such as Italy, France, Germany, the UK, and Spain are the largest revenue contributors in the European region. Western Europe contributes more than 79% of revenues in the luxury goods market. The region is also the largest producer of flexible packing products and solutions. The growing demand for watches and jewelry, premium vodkas and wines, fashion goods and accessories, and tobacco products will encourage vendors to introduce new solutions in the region. The growth in duty-free and travel retail industry will contribute to the growing revenues in the region.
The increasing demand for packaged food and beverages, personal care and healthcare goods, confectionary, tobacco products, and alcoholic beverages are driving the growth of the APAC region. The US contributed to the highest revenues in the North American region.
KEY VENDOR ANALYSIS
The global luxury packaging market is very fragmented and offers huge scope new players to enter and expand to emerging regions. The increasing middle-class income and rising infrastructure development are creating new avenues for leading vendors operating in the global market. The presence of diversified international vendors and regional players will intensify the competition. The top companies are developing new technologies to gain a competitive advantage. The increasing use of augmented reality (AR) technology to attract customers by retailers will encourage vendors to diversify their product portfolio.
Major vendors in the market are Amcor Limited, Crown Holdings Incorporated, International Paper, West Rock, andOwen – Illinois, Inc.
The luxury packaging market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Materials
- Paper and Paperboard
- Cosmetics and Fragrance
- Premium Alcoholic Drinks
- Fashion and Leather Goods
- Gourmet Food and Beverages
- Watches and Jewellery
- North America
- Latin America
- Middle East & Africa