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Reportlinker has announced the publication of the report “Luxury Packaging Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” . The luxury packaging market was valued at USD 16.65 billion in 2020 and is expected to reach USD 22.37 billion by 2026 and grow at a compound annual growth rate (CAGR) of 4.8% during the forecast period.
The Luxury Packaging market research report analyses in detail the market challenges and growth, technology, innovations, trends, outlook and product demand to focus on. The regions covered in the report are United States, Europe, Central and South America, China, Japan, Southeast Asia and India.
According to the report, several factors are driving the demand for luxury packaging and thus the growth of this market. These include the use of luxury packaging for packaging and decoration of high-end products, the increasing willingness of consumers to spend more on design and the focus on the use of sustainable and biodegradable packaging.
Indeed, leading packaging suppliers have access to many high quality materials and innovative shapes, as these properties enhance the consumer experience. As a result, brands are paying more attention to design, process and overall product development, which is driving demand for luxury packaging.
The report also shows that competition is rife, the luxury packaging market is highly fragmented and new players are expanding their operations to emerging regions. The number of leading suppliers operating in the global market is increasing, due to the rising middle class income and growing infrastructure development. There is a high degree of competitive rivalry between international and regional players.
The growing demand for sustainability
Also, the use of sustainable and biodegradable packaging is nowadays a key market driver as consumers are increasingly aware of the environment and seek more sustainable lifestyles. With this in mind, various companies are gradually prioritising sustainability.
For example, the sustainable make-up set produced by Giorgio Armani is intended to raise environmental awareness.
In another example, The Estée Lauder Companies (ELC) and Origins, a prestigious global skincare brand that offers high-performance formulas fuelled by nature and proven by science, and its parent company, The ELC, announced a partnership with global chemical industry supplier SABIC and strategic beauty packaging manufacturer Albéa to bring advanced recycled tube packaging to market in 2021.
The strategic partnership thus follows Estée Lauder’s sustainable packaging goals, which include increasing the amount of post-consumer recycled (PCR) material in its packaging to 50% by 2025, and would reinforce Origins’ efforts to have at least 80% of the brand’s packaging, by weight, recyclable, refillable, reusable, recycled or recoverable by 2023.
Delta Global has also created an innovative and environmentally friendly packaging solution for the premium fashion mystery box service Heat. With sustainability and innovation at the forefront, this partnership aims to reinforce both brands’ commitment to responsible practices and mitigate the fashion industry’s impact on climate change.
The growing adoption of cardboard
According to the report, cardboard is one of the most used materials in packaging. Next to it are metal, glass, plastic and wood, among others. Most of these materials are easy to find and help to create a sense of superior quality in the minds of customers.
Furthermore, the European Paper Recycling Council (EPRC) estimated that the paper recycling rate in the region maintained its high figures in 2019, rising from 71.7% in 2018 to 72%. This rate was achieved due to a stable use of paper for recycling (PfR) in the European paper industry.
Thanks to their ability to serve as a canvas for impeccable graphics and eye-catching decoration, paper and board have maintained a strong position in luxury and high-end packaging. Features such as laminations, unique coatings, super embossing and debossing effects make papers much more attractive in the packaging of luxury items. These packages also offer superior strength and softness.
For premium wine and spirits packaging, paper has always been a ubiquitous material in the sector. Craft beer brands, on the other hand, use paper labels to describe or advertise the superior quality or craftsmanship of their products.
An example of this attractiveness is the five-star perfume company XOXO’s spray water, which is covered with diamond flakes, printed in several colours, stamped and embossed. The carton is converted using Invercote G board and offset, printed with two spot colours and dense black inks with a glossy UV varnish.
Asia-Pacific expected to have the highest growth rate
The report forecasts significant growth over the forecast period for the Asia-Pacific region. This is justified by the increasing disposable income and consumer spending on luxury goods in the region. Population growth and massive urbanisation have led to the adoption of an urban lifestyle, due to changing consumer habits and increasing demand for luxury goods.
For example, according to the National Bureau of Statistics of China, in 2019, about 60.16% of the total population lived in cities.
The main factors driving the growth of the market also include the use of sustainable packaging, for the same reasons mentioned above, but also a massive increase in the number of product launches in the fashion and cosmetics sector. Indeed, major international brands are looking to emerging economies such as China to set up their shops, as the country is becoming the world’s largest consumer of luxury goods.
Also not to be overlooked is the factor involving online and correspondent retailing which is growing considerably, the growth of this type of retailing in the region is expected to drive the demand for luxury packaging solutions.
Read also > LUXURY PACKAGING : SUPERGA BEAUTY SHOWS ITS AMBITIONS WITH THE ACQUISITION OF COSMEUROP
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