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This market research report on the global luxury packaging market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by material (paper and paperboard, plastics, glass, metal, wood, and other), by end-users (cosmetics and fragrance, premium alcoholic drinks, fashion and leather goods, gourmet food and beverages, watches and jewelry, confectionery, tobacco, and others), and by geography (APAC, Europe, North America, Latin America, and MEA).
Luxury Packaging Market - Overview
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 design, development, and specifications will help boost profitability in the global market. 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 in the global market. 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 of the market. 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 global luxury packaging market is anticipated to reach values of more than $21 billion by 2024, growing at a CAGR of approximately 5% during 2018-2024. The market research report also offers market share analysis in terms of volumes (mn tons) during the forecast period.
Luxury Packaging Market - Dynamics
The introduction of new technologies that drive innovations will transform the global luxury packaging market. The increasing proliferation of 3D printing allows 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 in the market. 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 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 in the market. The integration of label technologies such as holograms, security papers, taggants, and radio frequency identification (RFID) technology will revolutionize the global luxury packaging market.
Luxury Packaging Market - Segmentation
This market research report includes a detailed segmentation of the market by materials, end-users, and geography.
Luxury Packaging Market – By Material
Introduction of high-quality paperboard grade and multi-ply boards will drive demand in the global luxury packaging market
The global luxury packaging market by the material is segmented 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 in the global market. 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 have applications across cosmetics, footwear, clothing, and food industries in the global luxury packaging market. 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.
Luxury Packaging Market – By End-Users
Digitalization, personalization, and customization is focus across cosmetics and fragrance sector in the global luxury packaging market
The end-user segment in the global luxury packaging market 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 in the global market. 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 in the market. 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 in the global luxury packaging market. 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 in the global luxury packaging market.
Luxury Packaging Market – By Geography
Western Europe to contribute over 79% revenues of luxury goods in the global luxury packaging market during the forecast period
The global luxury packaging market by geography is divided into APAC, Europe, North America, Latin America, and MEA. Europe occupied the majority 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 market. 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 in the global luxury packaging market. 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 European market. The growth in duty-free and travel retail industry will contribute to the growing revenues in the European market.
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 in the global luxury packaging market.
Key countries profiled in the report are:
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 in the global luxury packaging market.
The major vendors in the global luxury packaging market are:
- Amcor Limited
- Crown Holdings Incorporated
- International Paper
- West Rock
- Owen – Illinois, Inc.
Other prominent vendors include Ardagh Group, BC Boncar, Ch. Dahlinger GmbH & Co. KG, Stolzle Glass Group, Stolzle Glass Group., Fleet Luxury, HH Deluxe Packaging, Eurobox, Keenpac, and MW luxury Packaging.
Key market insights include
- The analysis of global luxury packaging market provides market size and growth rate for the forecast period 2019-2024.
- It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about the global luxury packaging market.
- The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
- It offers a complete overview of market segments and the regional outlook of global luxury packaging market.
- The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.
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