The global Luxury Packaging Market is estimated to be valued at US$ 15.82 Bn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Luxury packaging refers to premium or deluxe packaging of luxury products to enhance customer experience. It involves the usage of premium raw materials such as glass, wood, metal, and paper-based packaging for luxury goods from industries like personal care, fashion, food and beverages, tobacco, and other industries. Luxury packaging ensures safety and longevity of the product along with offering improved brand visibility and recognition. It serves as a differentiating marketing tool for luxury brands to endorse their brand value and position themselves in competitive luxury markets.
Market key trends:
The luxury packaging market is expected to witness significant growth over the forecast period, owing to rising premiumization trends and increasing disposable incomes of consumers globally. Additionally, growing demand for sustainable yet premium packaging from new-age luxury consumers is prompting manufacturers to introduce recyclable and eco-friendly luxury packaging solutions. Also, shifting preference towards online shopping and e-commerce is propelling luxury brands to invest more in visually appealing and high-quality packaging to attract new customers online. Innovation in printing and decoration techniques is further enhancing the experiential value of luxury packaging.
Threat of new entrants: The luxury packaging industry requires huge investments in machinery, designing capabilities and brand building. This creates barriers for new players to enter this market.
Bargaining power of buyers: Buyers have moderate bargaining power as there are many established players offering differentiated products in this industry. Buyers can negotiate on price and quality.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitutes and bargaining power of buyers in this market.
Threat of new substitutes: Threat from substitutes is low as luxury packaging requires specialized materials and designing that are not easily substitutable.
Competitive rivalry: The luxury packaging market is highly competitive with focus on quality, innovation, brand and customer experience.
The Global Luxury Packaging Market Size is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period 2023 to 2030, due to increasing demand for premium packaging from personal care and cosmetics industries.
Regional analysis: North America dominates the luxury packaging market owing to strong demand from cosmetic industry in the US. Asia Pacific is expected to witness fastest growth led by expanding luxury goods market in China and India.
Key players operating in the luxury packaging 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). Key players are focusing on innovations and adopting sustainable packaging solutions to cater to evolving consumer demands.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it