Luxury Packaging Market Size, Share and Analysis By Material (Plastic, Wood, Glass, Metal, and Others), By Packaging Type (Bags, Pouches, Boxes & Cartons, Bottles, and Others), By End-use Industry (Personal care & Cosmetics, Food & Beverages, Consumer Goods, Electrical & Electronics, and Accessories & Apparel), and Regional Forecast, 2024-2032

Luxury packaging is an innovative packaging style that offers attractiveness to the product and enhances the brand image. Luxury packaging is often used to improve the product value instead of protecting the package from certain situations. The rapid advancements in technology and trends encourage companies to opt for luxury packaging of their products rather than the traditional packaging method. Intelligent innovations and sustainable products can be designed with the help of luxury packaging.

The key manufacturers in the luxury packaging market offer customized and personalized packaging formats such as bags, boxes & cartons, pouches, and others to carry high-end luxury products. It generates a huge demand for high-end packaging, including luxury packaging. The e-commerce industry's growth due to digitalization trends and rising consumer spending on online shopping is estimated to boost the luxury packaging market. Moreover, the increasing internet penetration, primarily through social media platforms, and growing practical value among individuals are expected to spur the demand for luxury packaging worldwide.

• For instance, in October 2020, Breitling Company launched a foldable watch box made of recycled PET. The launch proves the significant efforts made by the company for sustainable packaging of luxury goods. From the fabric to the push buttons that open it, the watch box is designed with 100% upcycled PET bottles, which are among the significant recyclable types of plastic.


• In July 2020, the Fedrigoni Group developed a virostatic paper restricting COVID-19 transmission. The paper can have wide use in the luxury packaging industry as well as for using them as protective face masks. This development is significant for Phase 2 as millions of single-use face masks are used extensively outside workplaces & shops.

Rapidly growing demand for biodegradable & sustainable packaging solutions is the crucial factor driving the global luxury packaging market. The demand for customized and personalized packaging solutions is another key growth driver of the market, as it creates revenue-generating opportunities for major players. In addition, the growth in online retail platforms is also anticipated to augment the overall luxury packaging market over the forecast period. Moreover, the fundings offered by government bodies in many countries encourage manufacturers to introduce innovative products. This, in turn, is boosting the market growth. Other factors, such as changing consumer preferences, rapid urbanization, increasing willingness among consumers to spend more, and growing focus of various brands on their processes, design, and overall product development, are expected to drive the luxury packaging market.

The luxury packaging market is growing at a pace worldwide. Still, some reasons restrict the market growth, such as the high upfront cost required to set up a manufacturing unit to undertake the packaging work. Moreover, heavy-weight and bulky packaging impedes the expansion of the luxury packaging market worldwide. For luxury packaging, several materials are bonded together, making recycling and separating materials impossible. It, however, results in a large amount of non-recyclable waste when the unboxing process is completed. Furthermore, as luxury packaging production needs energy that usually uses fossil fuels, pollution in both air and water is created. Henceforth, the high capital investment, along with several environmental concerns, hampers the growth of the global luxury packaging market.

IMPACT OF COVID-19 ON THE LUXURY PACKAGING MARKET

The sudden outbreak of the novel coronavirus has negatively impacted the demand for luxury products, thus, creating a decline in the market growth of luxury packaging. The growth and demand for luxury packaging are highly dependent on fashion accessories & apparel, consumer goods, premium beverages & food products, and beauty products. During the pandemic, the worldwide lockdown measures and imposed restrictions impacted industrial trade activities, thus resulting in a decreased demand for luxury packaging. Consumers more often purchase products that can enhance their health rather than spending more on luxury products. Moreover, the slow growth or halt in the production of luxury products, shortage of raw materials, and supply chain disruptions caused a widespread effect on the market. However, ease in guidelines by the government authorities will likely increase the demand for luxury packaging worldwide.

KEY INSIGHTS

The report will cover the following key insights:

• Recent Advancements in Luxury Packaging Market


• Key Industry Trends


• Regulatory Landscape for Luxury Packaging Market


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

ANALYSIS BY MATERIAL

Based on the material, the market is segmented into plastic, wood, glass, metal, and others. Paper is considered to be the most preferred material among manufacturers. The high preference can be attributed to the sustainability and recyclability offered by this material. Moreover, high printability, recycling rate, and unique coatings make paper more attractive than other materials. This material also has superior strength and versatility, making it suitable for luxury packaging products. Furthermore, the rapidly growing sustainability trend among environmentally friendly consumers is expected to boost the demand for paper in the luxury packaging market.

ANALYSIS BY PACKAGING TYPE

Based on packaging, the market is segmented into bags, pouches, boxes & cartons, bottles, and others. Boxes & cartons are the most dominating segment of the luxury packaging market. The dominance can be attributed to the features such as rigidity, safety & protection, and aesthetic designs that make them feasible for packaging luxury products. Additionally, they offer improved interaction with buyers, attractiveness, and exterior designs that make the luxury packaging stand out among other products. Thus, boxes & cartons as a packaging format create profitable opportunities and drive the growth of the luxury packaging market.

ANALYSIS BY END-USE INDUSTRY

Based on the end-use industry, the market is segmented into personal care & cosmetics, food & beverages, consumer goods, electrical & electronics, and accessories & apparel. The personal care and cosmetics segment has witnessed immense growth and is further estimated to dominate the luxury packaging market. Consumers worldwide use personal care, beauty & cosmetics products to maintain personal hygiene, which creates the need for luxury packaging product beautification. Also, along with the growing social media trends and influences, the millennial population essentially uses such products. Luxury packaging is used in deodorants and antiperspirants, foams and gels, gel toothpaste, hair skincare & haircare products. The growing demand for such products is the rapidly growing luxury packaging market.

REGIONAL ANALYSIS

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The luxury packaging market has been studied across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia Pacific region dominates the global luxury packaging market, which can be attributed to the increasing disposable incomes and consumer spending on luxury products. Rapid urbanization and the increasing population in this region have led to a rise in the adoption of urban lifestyles and trends.

The changing purchasing patterns and massive demand for customized & personalized products in the Asia Pacific region lead to regional growth. Moreover, the leading manufacturers' innovative product launches with the help of bio-degradable materials are also contributing to the luxury packaging market growth in this region. Leading international brands have increased their focus on eco-friendly luxury packaging to maintain sustainability goals and set up their stores in the countries such as India and China. The increasing setup in these countries also contributes to the massive growth of the Asia Pacific luxury packaging market.

KEY PLAYERS COVERED

The report will include profiles of key players such as Amcor Limited, HH Deluxe Packaging, Ekol Ofset, DS Smith Plc, Pendragon Presentation Packaging Ltd, MW Creative Ltd, Winter and Company AG, Lucas Luxury Packaging, CLP Packaging Solutions Inc., Luxpac Ltd., GPA Global, Fleet Luxury Packaging, Stolzle Glass, Ardagh Group

SEGMENTATION

KEY INDUSTRY DEVELOPMENTS

• In June 2021, Amcor announced the launch of an advanced heat seal medical packaging solution that can be used in medical applications and paper packaging. The ACT2100 provides increased productivity and is made available worldwide. This next-generation coating technology offers potential benefits in healthcare applications and provides documents for regulations in all markets.


• In April 2021, Amcor announced its partnership with Nestle to bring sustainable packaging using R&D resources that will help Nestlé conduct a consumer testament by performing smarties to the confectionery brands for processing paper packaging in Australia. The new packaging is developed with thermoformed paper from environment-friendly sources. It is also dynamic enough to be printed with gravure or flexographic printing and can be applied with thermal or cold glue. This next-generation packaging solution effectively offers the highest level of product protection.


• On 25^th February, 2021, Steklarna Hrastnik, a Slovenian glassmaker, inaugurated its new furnace for its extra white flint glass product by investing around EUR 18.5 billion. The new furnace has a production capacity of 120 tons and is designed to produce extra white flint glass for cosmetics, perfumery, and spirits. The company also operates two furnaces at two sites in Hrastnik town, and it plans to upgrade its B furnace, which will be fully dedicated with a capacity of 165 tons for extra white flint glass used in spirits by 2023.


• On 14^th October, 2020, the Estée Lauder Companies (ELC) and Origins declared a sustainable packaging partnership with Albea & SABIC. Origins is a prestigious global skincare brand that offers high-performance formulas powered by nature and proven by science. Along with its parent company, the ELC, the partnership with global chemical industry vendor SABIC and strategic beauty packaging manufacturer Albea will bring an advanced recycled tube package to market.


• On 29^th August, 2020, Delta Global brought an innovative and eco-friendly packaging solution for Heat's high-end fashion mystery box service into the market. With innovation & sustainability grabbing significant attention, this partnership further aims to strengthen both brands' commitment to responsible practices and to mitigate the fashion industry's impact on climate change.