The luxury packaging market is expected to register a CAGR of 4.8% during the forecast period 2019-2024. The cannabidiol or CBD packaging trend is spreading like a tidal wave through lifestyle and beauty markets. The market for luxury products made from the non-psychoactive parts of the marijuana plant is exploding and these labels are targeting luxury retailers like Sephora and Neiman Marcus, which will give new opportunity to increase the growth of market.
- Use of sustainable and bio-degradable packaging is a key driver for the market. Companies are gradually prioritizing sustainable development over everything else, as consumers are becoming more and more environmentally aware and are seeking out more sustainable lifestyle choices. Sustainable Make-up Box is produced by Giorgio Armani to enhance the awareness towards the eco-friendly environment.
- The growing demand for travel and retail chains that offer luxury and premium brands of various products is augmenting the growth to the market. Due to the rising popularity of the travel and tourism industry, services are enhancing the experience and value for money which enables consumers to shop premium and luxury brands at a discounted price. Cosmetics company NARS revealed it’s the first ever travel retail exclusive collection for the cosmetic product and jetsetter collections.
- However, due to reluctance of consumers and marketers to utilize heavy-weight and bulky packaging products and materials is a key challenge for the market.
Scope of the Report
The luxury packaging market is growing as it has become identification for setting up a brand value. Generally used by high-end products, luxury packaging is used in healthcare and medical, FMCG, and household products.
Key Market Trends
Paperboard is Witnessing an Increased Adoption
- Paper and paperboard have maintained a strong position in luxury and premium packaging with their ability to serve as a canvas for flawless graphics and eye-catching decoration. Things such as laminations, unique coatings, super embossing or debossing effects make paper something that can be much more attractive in the luxury space, with superior strength, smoothness.
- In the high-end wine and spirits segments, paper has always been and remains a popular label material. Craft beer continues to take share in the beer segment and brands in that space have given paper labels to express the product’s premium or handcrafted attribute
- Besides, five-star fragrance company’s XOXO Eau de Parfum spray features diamond glitter coating, multi-color printing, foil stamping, and embossing. The carton is converted utilizing Invercote G paperboard and offset printed with two spot colors, and dense black inks with UV gloss spot coating, which makes customer more desiring to purchase the product.
Asia-Pacific to Witness a Highest Growth Rate
- Asia-Pacific is expected to be the fastest growing region, owing to the increase in consumer spending in various countries. The demand for cosmetics and food products is expected to grow, owing to the growing population and the demand for quality products. Large population and heavy urbanization have led to an increase in demand for frozen food products in the region.
- Sustainable packaging is driving the market in Asia-Pacific region, where high end products are being focus to produce packaging by the help of bio-degradable activity, which creates an eco-friendly market.
- Many international luxury packaging companies are eyeing the China market as the country is fast turning into the world's largest consumer of luxury goods. James Cropper offers high-quality packaging paper to many luxury brands such as Burberry Group PLC and Alfred Dunhill, by offering personalized paper solutions.
- Chinese consumers are also looking for easy-to-use and quality food products. In the recent years, a surge in the online retailing in China is expected to drive the demand for luxury packaging solutions.
The luxury packaging market is very fragmented and new players are entering and expanding to emerging regions. Leading vendors operating in the global market are increasing due to rise in middle-class income and rising infrastructure development. There is a high rivalry among diversified international vendors and regional players which is increasing the competition. Key players are
- April 2019 - Fresnels has launched a new division to provide brand enhancement technologies and technical support to the global retail-packaging sector. Differentiation in their packaging through the use of eye catching effects will combine elegance with value for money as part of an overall eco-friendly solution.
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