The 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 refers to extravagant product packaging made with premium materials like glass, metal, wood, and leather. It offers brand enrichment, sensory appeal, and enhances the image of luxury brands. Luxury packaging protects products from damage and prevents tampering to uphold brand prestige.
Market key trends:
Increasing emphasis on sustainable packaging is a key trend propelling the luxury packaging market growth. Consumers are aware of the environmental impact of excessive packaging. As a result, major luxury brands are focusing on eco-friendly packaging made from recycled content, renewable resources, and compact designs to reduce carbon footprint. For instance, German luxury carmaker BMW Group launched packaging made from recyclable bamboo fibers and paper for their Mini vehicle models. Similarly, cosmetic major L'Oréal has introduced refillable compacts and eliminates excessive secondary packaging to curb waste. The rising demand for sustainable luxury solutions among affluent customers is expected to foster innovations in sustainable packaging materials over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate because of the presence of well established players in the luxury packaging market. However, large capital requirements for R&D, production facilities, etc. act as a barrier for new players.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of a large number of suppliers providing customized luxury packaging solutions as per the requirements of buyers. Buyers can switch between various packaging suppliers to avail the best prices.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. There are large suppliers providing raw materials like cardboard, plastics, metals, glass, etc. required for luxury packaging production. However, switching costs are low for packaging manufacturers to change suppliers.
Threat of new substitutes: The threat of new substitutes is low as luxury packaging offers unique advantages like brand differentiation, prestige, and safety during transportation which are difficult to substitute.
Competitive rivalry: The competitive rivalry in the luxury packaging market is high due to the presence of tier 1 and tier 2 players offering differentiated products.
SWOT Analysis
Strength: The luxury packaging market provides opportunities for brand differentiation and premiumization. Luxury packaging enhances the image and brand value of premium products.
Weakness: High production and R&D costs associated with luxury packaging solutions increase the overall cost of packaged goods. Luxury packaging has stringent sustainability and environmental norms.
Opportunity: Rising millennial spending on luxury goods and e-commerce boom are creating demand for sophisticated packaging. Growing Asian markets like India and China offer huge untapped potential.
Threats: Economic slowdowns impact the disposable income of customers reducing their spend on luxury/premium goods and packaging. Stringent government regulations regarding the usage of materials like plastic and paper pose challenges.
Key Takeaways
The Global Luxury Packaging Market Size is expected to witness high growth, exhibiting over the forecast period, due to increasing disposable income and status consciousness among consumers. The market size is projected to reach US$ 23.04 Bn by 2030 from US$ 15.82 Bn in 2023.
On a regional level, Europe dominates the luxury packaging market with over 35% market share in 2023. Strong presence of leading luxury brands and high consumer spending on luxury goods drive the European market. However, Asia Pacific is expected to witness the fastest growth exhibiting a CAGR of around 6% during the forecast period. Factors such as rising middle-class population, improving economic conditions, and changing lifestyle in countries like China and India support the luxury packaging market growth in Asia Pacific.
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
For More Insights, Read: https://www.newswirestats.com/luxury-packaging-market-demand-growth-and-regional-outlook-by-2030/
