July 14, 2024

The Growing Importance of Brand Identity and Status to Drive Growth in the Luxury Packaging Market

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.

Market Overview:
Luxury packaging involves ornate premium packaging used for high-end consumer goods to impart uniqueness and enhance the brand identity and status. Luxury packaging helps luxurious brands to differentiate their products and communicate their premium positioning to customers. Luxury packaging uses premium materials like glass, metal, wood and unique designs to attract customers. The increasing importance of brand identity and status has boosted the demand for luxury packaging from industries like personal care, fashion and apparel, food and beverages, and others.

Market key trends:
One of the key trends in the luxury packaging market is the use of sustainable and eco-friendly packaging materials like recycled glass and paper. Companies are increasingly focusing on sustainable luxury packaging to appeal to environment conscious customers. Another major trend is the incorporation of advanced printing and lamination techniques to make packaging designs more premium and unique. Customization and personalized luxury packaging are also gaining popularity. With the growing e-commerce, companies are exploring innovative sustainable packaging solutions to maintain product presentation and safety during shipping.

Porter’s Analysis
Threat of new entrants: The luxury packaging industry requires high initial investments and established brand value. However, the growing market size provides opportunities for new players.
Bargaining power of buyers: Well-recognized brands give buyers more bargaining power to negotiate lower prices. However, unique product offerings and designs increase switching costs.
Bargaining power of suppliers: Due to the availability of raw materials from various suppliers globally, suppliers have low bargaining power in this industry.
Threat of new substitutes: Growing environmental concerns may increase demand for sustainable packaging solutions like paper-based and bio-based materials acting as substitutes.
Competitive rivalry: The market is consolidated with tier 1 players competing intensely on innovation, quality, and brand value, increasing competitive rivalry.

Key Takeaways
The Global Luxury Packaging Market is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing disposable income and growing luxury goods market.

Regional analysis: The Asia Pacific luxury packaging market is expected to grow at the fastest pace during the forecast period.China dominates the APAC luxury packaging market with rising demand for premium products from affluent consumers. Europe holds the largest share in the global luxury packaging market with established brands in the region.

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 focused on sustainable packaging innovation and providing premium quality products to attract consumers.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it