FMI survey reveals the developments that have a revenue impact on this market.
The global luxury packaging market looks poised to attain a valuation of US$ 10.4 billion in 2023. From 2023 to 2033, the market is likely to accelerate at a steady CAGR of 5.5% and reach a US$ 17.9 billion in 2033. The top players in the global market are likely to hold a 15-20% share in the worldwide industry in 2023.
Luxury packaging consists of products that allow premium brands to showcase their sophistication in front of their target audiences. It includes packaging that is not only protective, but also visually stimulating.
For many luxury brands, it adds value to their products, and the general belief among them is audiences would be willing to pay higher prices for items packaged in a sophisticated manner. Customers of luxury brands often tend to flaunt the packaging, which helps the companies to advertise themselves and their products.
The food & beverages segment is expected to generate hefty demand for premium packaging solutions owing to the increasing consumption of alcoholic beverages and cookies & biscuits. The target segment is estimated to hold around 51% of the market value share in 2033. Surging desire for premium products among consumers along with the need for eye-catching protection are propelling the demand for luxury packaging.
Players operating in the market for luxury packaging are likely to be presented with several lucrative opportunities between 2023 and 2033. According to Future Market Insights (FMI), luxury packaging sales are likely to surge in the coming years and result in an absolute dollar opportunity amounting to US$ 8.1 billion.
With the rising adoption of customized and attractive packaging by brand owners, the luxury packaging market is anticipated to grow 1.7 times of its present valuation between 2023 and 2033.
Based on FMI research, North America and Europe are likely to emerge as the most dominant regional markets in the next decade. The two regions’ collective share in the global market is likely to be as much as a whopping 50%. This is due to the rising consumption of luxury products across the two regions.
How are Personalization and Customization Trends Contributing to Burgeoning Luxury Packaging Demand?
Consumers’ Desire for Exclusivity through Personalization and Customization to Drive Luxury Packaging Demand
Through personalization and customization of premium packaging solutions, brands can make their products more attractive for consumers. Several brands are known for their unique use of colors, designs, prints, and logos. This has helped them to strengthen their grasp across their respective industries.
These elements allow companies to establish brand recall, i.e. how quickly consumers remember them based on their branding. As a result, companies are spending extensively on luxury rigid packaging to ensure that their products are packaged in personalized and customized ways.
From an average consumers’ perspective, personalization and customization in packaging make the buyer feel empowered. Consumers can feel confident that the products they have purchased are their own, which gives them a sense of exclusivity. FMI expects these trends to prevail between 2023 and 2033, which should drive luxury packaging sales in the coming years.
Why is the Expanding Market for Luxury Goods Fueling Luxury Packaging Sales?
Increasing Purchasing Power of Consumers Worldwide to Shape Market for Luxury Goods and Positively Impact Luxury Packaging Sales
In recent years, a certain section of consumers worldwide has benefited from increasing disposable incomes. For instance, India is among the most prominent developing economies in the world that has seen its middle class experience a significant increase in income.
This has given consumers added purchasing power that has made luxury goods more accessible than before. Between 2023 and 2033, FMI anticipates the global market for luxury goods to register substantial expansion. This should positively impact the market for premium packaging materials as well.
Consumers who are now able to purchase luxury goods from time to time are not only satisfied by the products anymore. They also want luxury flexible packaging that gives them a sense of superiority and exclusivity. This is the key factor slated to drive luxury packaging sales from 2023 to 2033. FMI expects continuous innovation on the luxury packaging front in the years ahead as consumers’ desires are dynamic.
How will Demand for Luxury Packaging Surge in the United States?
Thriving E-commerce Sector in the United States to Provide Lucrative Opportunities for Players in the Market for Luxury Packaging
In North America, FMI expects the United States to emerge as the dominant market for luxury packaging between 2023 and 2033. A US$ 2.4 billion incremental is anticipated to be created by the United States market. The driving force behind this anticipation is the escalating luxury goods sales across the country’s thriving e-commerce sector.
Statistics published by National Retail Federation and the United Nations Conference on Trade and Development illustrate how e-commerce survived the economic uncertainties triggered by COVID-19.
Now that the country has left the worst of the pandemic behind it, FMI expects e-commerce expansion to propel and contribute to the acceleration of the luxury packaging market.
· In February 2023, the Fedrigoni Group announced a partnership with a paper mill company based in China’s Zhejiang province.
· In February 2023, TriMas announced that it has acquired Aarts Packaging.