Luxury packaging is used for packaging and decorating high-end products.
Major packaging manufactures are gaining access to various high-quality materials and innovative shapes, as these properties enhance the consumer experience. The factors, like changing consumer preferences, growing willingness to spend more, and rising focus of several brands on design, processes, and the overall product development, are boosting the luxury packaging demand.
In addition, the small-scale suppliers are differentiating themselves by offering specific products, engineered support, and packaging solutions for their target customers. Even though the global macro environment is challenging, the underlying growth of the luxury packaging market is expected to remain strong, as many technological trends are evolving.
The companies, with broader product portfolios, are expected to outperform on the basis of their capability, to address challenges in the major market space. These companies are also expected to benefit from the decreasing production costs, owing to globalization and deflationary pressures.
Growth in the Demand for Appealing Packaging to Drive the Market
An increase in the luxury product consumption rate and the number of product launches in the fashion and cosmetic sectors are some major factors driving the market growth. Moreover, increase in investments by manufacturers, in sustainable development, demands the need for innovation and technologies in luxury packaging, which is expected to further accelerate the growth of the luxury packaging market. Through luxury packaging solutions, each brand seems to be adopting a unique style. It further helps customers to associate products with a particular brand. Also, the major market players are concentrating on the development of packaging materials that prevent contamination of products (especially food and beverages), apart from being aesthetically appealing.
Glass to Hold the Highest Market Share
The demand for glass material is being driven by the recovering and growing main luxury markets, such as cosmetics and fragrances. Glass material remains popular with brand owners and consumers, due to its strong sustainability associations and aesthetically appealing properties. The cost associated with glass per ton is quite lower when compared to, both, luxury paperboard and plastics. Moreover, the prominence of glass in the alcoholic drinks segment is expected to drive the market demand. However, glass, on the whole, is expected to lose share in the upcoming years, owing to the growing demand for plastic packaging that is being driven by lower costs and lighter weights associated with plastic.
Asia-Pacific to witness the Highest Growth Rate
Asia-Pacific is expected to be the fastest growing region, owing to the increase in consumer spending in China, India, Japan, and other countries. Moreover, the demand for cosmetics and food products is expected to grow, owing to the growing population and the demand for quality products, urbanization, and consumers inclining toward technology. Large population and heavy urbanization have led to an increase in demand for frozen food products in the region Chinese consumers are looking for easy-to-use and quality food products. Also, in the recent years, a surge in online retailing in the region is expected to drive the demand for luxury packaging solutions.
Key Developments in the Market
- October 2017 - Port Glasgow-based McLaren Packaging, a Scottish manufacturer who drives the bulk of its business from the Scotch whiskey industry, announced a multi-million-pound expansion plan. The company planned to invest about GBP 3 million, in order to build a luxury packaging facility in Stirling.
Reasons to Purchase this Report
- The growing demand for appealing packaging changing the market scenario
- Various perspectives of the market, with the help of Porter’s five forces analysis
- The material and end-user expected to dominate the market
- The regions expected to witness the fastest growth rates during the forecast period
- The latest developments, market shares, and strategies that are employed by the major market players
- 3 months analyst support, along with the Market Estimate sheet (in excel)
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1.1 Key Deliverables of the Study
1.2 Study Assumptions
1.3 Market Definition
1.4 Key Findings of the Study
2. Research Approach and Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Factors Driving the Market
4.2.1 Growing Demand for Appealing Packaging Solutions
4.2.2 Increasing Penetration of Travel Retail and Online Retail
4.3 Factors Restraining the Market
4.3.1 Decline in the Demand for Glass Packaging
4.4 Industry Attractiveness - Porter's Five Industry Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products or Services
4.4.5 Competitive Rivalry among Existing Competitors
4.5 Industry Policies
5. Global Luxury Packaging Market Segmentation
5.1 By Material
5.2 By End User
5.2.1 Cosmetics and Fragrances
5.2.3 Watches and Jewelry
5.2.4 Alcoholic Drinks
5.2.5 Food and Non- Alcoholic Drinks
5.3 By Region
5.3.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
5.3.4 Latin America
5.3.5 Middle East & Africa
126.96.36.199 Saudi Arabia
6. Competitive Intelligence - Company Profiles
6.1 MW Luxury Packaging
6.2 Progress Packaging Ltd
6.3 HH Deluxe Packaging
6.4 Groupe VERPACK
6.5 Prestige Packaging Industries
6.6 Lucas Luxury Packaging Limited
6.7 Crown Holdings Inc.
6.8 Ardagh Group
6.9 Pendragon Presentation Packaging Ltd
6.10 Owens-Illinois Inc.
7. Investment Analysis
8. Future of the Luxury Packaging Market
- Group VERPACK
- Progress Packaging Ltd.
- Prestige Packaging Industries
- MW Luxury Packaging
- Lucas Luxury Packaging Limited
- Crown Holdings Inc
- Ardagh Group
- Pendragon Presentation Packaging Ltd.
- Owens-Illinois Inc
- HH Deluxe Packaging