Global Luxury Packaging Market - Segmented by Material (Paperboard, Plastic, Wood), End-User, and Region - Growth, Trends and Forecasts (2018 - 2023)
The global luxury packaging market is expected to register a CAGR of about 4.67% during 2018-2023 (the forecast period). The report highlights the different types of materials that are used by the players for the manufacture of packaging solutions. The regions considered in the scope of this report include North America, Europe, and various others. Apart from this, the report also discusses that how the growing penetration of travel retail and online retail is fueling the demand for luxury packaging solutions
Luxury packaging is used for packaging and decorating high-end products. Major packaging manufactures are gaining access to various high-quality materials and innovative shapes, as these properties enhance the consumer experience. The factors, like changing consumer preferences, growing willingness to spend more, and rising focus of several brands on design, processes, and the overall product development, are boosting the luxury packaging demand.
In addition, the small-scale suppliers are differentiating themselves by offering specific products, engineered support, and packaging solutions for their target customers. Even though the global macro environment is challenging, the underlying growth of the luxury packaging market is expected to remain strong, as many technological trends are evolving.
The companies, with broader product portfolios, are expected to outperform on the basis of their capability, to address challenges in the major market space. These companies are also expected to benefit from the decreasing production costs, owing to globalization and deflationary pressures.
Growth in the Demand for Appealing Packaging to Drive the Market
An increase in the luxury product consumption rate and the number of product launches in the fashion and cosmetic sectors are some major factors driving the market growth. Moreover, increase in investments by manufacturers, in sustainable development, demands the need for innovation and technologies in luxury packaging, which is expected to further accelerate the growth of the luxury packaging market. Through luxury packaging solutions, each brand seems to be adopting a unique style. It further helps customers to associate products with a particular brand. Also, the major market players are concentrating on the development of packaging materials that prevent contamination of products (especially food and beverages), apart from being aesthetically appealing.
Glass to Hold the Highest Market Share
The demand for glass material is being driven by the recovering and growing main luxury markets, such as cosmetics and fragrances. Glass material remains popular with brand owners and consumers, due to its strong sustainability associations and aesthetically appealing properties. The cost associated with glass per ton is quite lower when compared to, both, luxury paperboard and plastics. Moreover, the prominence of glass in the alcoholic drinks segment is expected to drive the market demand. However, glass, on the whole, is expected to lose share in the upcoming years, owing to the growing demand for plastic packaging that is being driven by lower costs and lighter weights associated with plastic.
Asia-Pacific to witness the Highest Growth Rate
Asia-Pacific is expected to be the fastest growing region, owing to the increase in consumer spending in China, India, Japan, and other countries. Moreover, the demand for cosmetics and food products is expected to grow, owing to the growing population and the demand for quality products, urbanization, and consumers inclining toward technology. Large population and heavy urbanization have led to an increase in demand for frozen food products in the region Chinese consumers are looking for easy-to-use and quality food products. Also, in the recent years, a surge in online retailing in the region is expected to drive the demand for luxury packaging solutions.
Key Developments in the Market
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