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  • Published On : Jul 2022
  • Code : CMI5088
  • Industry : Packaging
  • Pages : 139
  • Formats :

There are many benefits of luxury packaging. From design to development to manufacturing, it is a crucial component of a brand's image. And studies show that consumers will spend more on products if the packaging is appealing. Creating the right luxury packaging design starts with understanding the target audience. A mass-produced product might have bright colors that are hard to remove. Luxury brands want to target their customers' sense of touch and sight. To do this, consider adding a depth-enhancing element.

Market Statistics:

The global luxury packaging market was valued at US$ 14.49 Bn in 2021 and is forecast to reach a value of US$ 19.1 Bn by 2030 at a CAGR of 4.4% between 2022 and 2030.

Asia Pacific held dominant position in the global Luxury Packaging market in 2020, accounting for 34.1% share in terms of volume, followed by Europe and North America respectively.

Figure 1. Global Luxury Packaging Market Value Share (%), By Region, 2021

Luxury Packaging  | Coherent Market Insights

Recent Developments:

  1. In March 2020, DS Smith announced the opening of its first recycling facility in the United States, the company’s latest expansion of its business operations in North America. The new plant can recycle over 36,000 metric tons of old corrugated cardboard each year, creating new, fully recyclable packaging for the customers.
  2. In February 2021, The Company partnered with Heineken to support a new glass recycling pilot program, Volte Sempre, in Brazil. Consumers take their empty glass bottles to machines located at convenient places around supermarkets, bars, and residential condos. When a consumer drops off a bottle at a Volte Sempre machine, they get credit through an app that they can redeem toward their next Heineken product purchase. The company thereby uses recycled glass to maintain the environmental sustainability.
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Luxury Packaging Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 14.49 Bn
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 4.40% 2030 Value Projection: US$ 19.1 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Material: Paperboard, Glass, Metal, Plastics, Other Types of Materials
  • By End-User Industry: Cosmetics and Fragrances, Confectionery, Watches and Jewellery, Premium Beverages, Other End-user Industries
Companies covered:

Tier 1 Companies (DS Smith PLC, Crown Holdings Inc., Ardagh Group, WestRock Co., Owens-Illinois Inc., International Paper Company Inc., Amcor PLC, Delta Global, GPA Global), and Tier 2 Companies (HH Deluxe Packaging, Prestige Packaging Industries, Pendragon Presentation Packaging, Stolzle Glass Group, Keenpac, Elegant Packaging, BC Boncor, Luxpac Ltd, McLaren Packaging Ltd, and B Smith Packaging Ltd)

Growth Drivers:
  • Growing demand for sustainable and bio-based packaging
  • Expanding cosmetic and personal care industry
Restraints & Challenges:
  • Low adoption in packaging heavy products
  • Impact of Covid1-19

Market Drivers:

Growing use of sustainable and bio-degradable packaging is driving growth of the luxury packaging market. The paperboard material is significantly used in the packaging of luxury goods as it has a high recycling rate. According to the European Paper Recycling Council (EPRC) July 2020 press release, the paper recycling rate in the region maintained its high recycling numbers in 2019, increasing from 71.7% in 2018 to 72%. This rate was achieved owing to a stable utilization of Paper for Recycling (PfR) in the European paper industry.

Increasing preferences for customized packaging solution from end-user industries is again fostering market growth. With the increasing trend for personalization, the demand for customized packaging in the luxury goods market is witnessing significant growth. Various end-user such as fashion & Apparel, premium beverage, watches, and jewelry are offering customized packaging solutions to fulfil the need of the consumers.

Figure 2. Global Luxury Packaging Market Value Share (%), By End Use Industry, 2021

Luxury Packaging  | Coherent Market Insights

Market Restraints:

Low adoption in packaging heavy and bulk products is expected to hinder the market growth. The packaging of the heavy and bulk product involves a lot of cost constraint factor to the manufacturers such as machinery cost, cost of material, high printing  cost,  among  other  which  is  another  reason  why  luxury  goods manufacturers are restricting to pack heavy and bulk luxury goods.

Impact of Covid-19 has significantly affected the overall packaging industry. This pandemic has severely impacted the industrial and trade activities. Hence, creating a slowdown in the luxury packaging market.

Market Opportunities:

Increasing launch of advanced packaging that restrict transmission of Covid-19 is expected to provide lucrative growth opportunities. For instance, in July 2020, Fedrigoni Group developed a virostatic paper that restricts Covid-19 transmission that can be applied from luxury packaging to protective face masks.

Growing demand for paper &paperboard in luxury packaging is again projected to bring profitable market opportunities for the players. Factors such as unique coatings, laminations, high printability, and striking appearance make paper & paperboard more attractive compared to other materials.

Market Trends/Key Takeaways:

Changing fashion trend is creating demand for cosmetic products which in turn expected to uplift growth of the market in the future. For instance, according to L'Oréal the annual growth rate of the global cosmetics accounted to 5.25% in 2019 compared to 1% in 2009.

Various key vendor of glass packaging for luxury packaging are significantly expanding their foot hold by adopting merger and acquisition activities.  For instance, in February 2021, Slovenian glassmaker Steklarna Hrastnik inaugurated its new furnace for extra white flint glass with investment of EUR 18.5 Billion. The new furnace has a production capacity of 120 tons and will produce extra white flint glass for spirits, cosmetics and perfumery market.  Moreover, the company operates two furnaces at two sites in the town of Hrastnik and it plans to upgrade its B furnace, dedicated to extra white flint glass for spirits, with a capacity of 165 tons, in 2023.

Competitive Landscape:

    1. Tier 1 Companies
      1. DS Smith PLC
      2. Crown Holdings Inc.
      3. Ardagh Group
      4. WestRock Co.
      5. Owens-Illinois Inc.
      6. International Paper Company Inc.
      7. Amcor PLC
      8. Delta Global
      9. GPA Global
    2. Tier 2 Companies
      1. HH Deluxe Packaging
      2. Prestige Packaging Industries
      3. Pendragon Presentation Packaging
      4. Stolzle Glass Group
      5. Keenpac
      6. Elegant Packaging
      7. BC Boncor
      8. Luxpac Ltd
      9. McLaren Packaging Ltd
      10. B Smith Packaging Ltd

The process of luxury packaging involves design, research, development and manufacturing. This type of packaging enhances the image of a brand. According to research, consumers are more willing to pay more for products with beautiful packaging. Therefore, luxury packaging is crucial to the marketing strategy of a brand.

Market Dynamics:

Growing demand for sustainable and bio-degradable packaging is expected to drive growth of the luxury packaging market. Increasing consumer spending on online shopping and growing demand for personalized packaging are other major factor fostering market growth. Additionally, growing consumer interest on luxury goods and expanding cosmetic industry will further favor the market growth. For instance, in February 2021, Ardagh Group introduced a new edition to their glass portfolio that caters to the limited-edition Vodka bottle (Absolut). The glass is blue frosted with upward spiral design having 16 swirls that symbolizes a never-ending cycle of change.

On the other hand, low adoption of packaging in heavy products and covid-19 impact are major factor expected to restrict the market growth.

Key features of the study:

  • This report provides in-depth analysis of the global luxury packaging market, and provides market size (US$ Million) and compound annual growth rate (CAGR%) for the forecast period (2022–2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global luxury packaging market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include Tier 1 Companies (DS Smith PLC, Crown Holdings Inc., Ardagh Group, WestRock Co., Owens-Illinois Inc., International Paper Company Inc., Amcor PLC, Delta Global, GPA Global), and Tier 2 Companies (HH Deluxe Packaging, Prestige Packaging Industries, Pendragon Presentation Packaging, Stolzle Glass Group, Keenpac, Elegant Packaging, BC Boncor, Luxpac Ltd, McLaren Packaging Ltd, and B Smith Packaging Ltd)
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global luxury packaging market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global luxury packaging market

Detailed Segmentation:

  • Global Luxury Packaging Market, By Material:
    • Paperboard
    • Glass
    • Metal
    • Plastics
    • Other Types of Materials
  • Global Luxury Packaging Market, By End-User Industry:
    • Cosmetics and Fragrances
    • Confectionery
    • Watches and Jewelry
    • Premium Beverages
    • Other End-user Industries
  • Global Luxury Packaging Market, By Geography:
    • North America
    • Europe
    • Asia-Pacific
    • Latin America
    • Middle East & Africa

Frequently Asked Questions

The global luxury packaging market size is estimated to be valued at US$ 14.49 Billion in 2021 and is expected to exhibit a CAGR of 4.40% between 2022 and 2030.
Growing demand for sustainable and bio-based packaging are fuelling the growth of the market.
The Cosmetics and Fragrances segment is the leading component segment in the market.
Low adoption in packaging heavy product is the major factors restraining growth of the market.
Major players operating in the market are Tier 1 Companies (DS Smith PLC, Crown Holdings Inc., Ardagh Group, WestRock Co., Owens-Illinois Inc., International Paper Company Inc., Amcor PLC, Delta Global, GPA Global), and Tier 2 Companies (HH Deluxe Packaging, Prestige Packaging Industries, Pendragon Presentation Packaging, Stolzle Glass Group, Keenpac, Elegant Packaging, BC Boncor, Luxpac Ltd, McLaren Packaging Ltd, and B Smith Packaging Ltd)

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