Luxury Packaging Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Material (Paperboard, Metal, Glass, Textile, Plastic, Others), By Application (Tobacco, Premium Beverages, Watches And Jewellery, Confectionery, Cosmetics And Fragrances, Others), And By Geography - Forecasts From 2021 To 2026

The luxury packaging market is estimated to grow at a CAGR of 4.09% to reach US$20.258 billion in 2026 from US$15.298 billion in 2019.

The rise in disposable income, adoption of the western culture by developing economies of the east, and urbanization especially in emerging economies such as Brazil, China, India, and Australia are leading to the increasing demand for personalized packaging and aesthetically appealing packing of various consumer products such as watches, fragrances, jewelry, cosmetics among other products. Consumers are demanding aesthetically appealing packaging with the perception of value it can add to the product.

This factor is acting as the key driver of the luxury packaging market.  Further, the rise in awareness about the environment is encouraging consumers to prefer sustainable packaging solutions. The manufacturers are focusing on and introducing sustainable, bio-degradable, or eco-friendly packaging with enhanced functionality and multi-use designs.

The outbreak of the Covid-19 pandemic has disrupted the supply chain of the luxury packaging market. However, the market is recovering and the significant effect of Covid-19, in the long run, is unlikely.

Luxury packaging has been segmented by materials such as Paperboard, Metal, Glass, Textile, Plastic, and others. In terms of value, paperboard accounts significant share of the market followed by glass. According to the European Paper Recycling Council (EPRC), the paper recycling rate in the region maintained its high recycling numbers in 2019, increasing from 71.7% in 2018 to 72%. This rate was achieved owing to a stable utilization of Paper for Recycling (PfR) in the European paper industry. Metal and plastic are also expected to grow at a noteworthy rate owing to the cost benefits it provides over traditional paper packaging solutions. Besides, innovation in the plastic industry and high demand from end customers are some of the factors driving the demand for plastic luxury packaging solutions and products.

By application, the global luxury packaging market has been segmented as tobacco, premium beverage, watches and jewelry, confectionery, cosmetics and fragrances, and others. Cosmetics and fragrances hold a significant share of the luxury packaging market due to the rise in the willingness and demand of consumers to spend more on appealing and luxurious products. The cosmetic and fragrance segment is expected to grow at a significant rate over the forecasted period owing to the rising global aging population, increased spending on personal grooming by the younger generation, and high demand for natural deodorants and perfumes. Alcoholic drinks also hold a considerable market share owing to the rising consumption of beer and wine. However, watches and jewelry are anticipated to witness the fastest market growth due to increased disposable income and thus, a rise in the spending by consumers on these accessories and the high volume of imported watches to be sold in developing economies.       

The luxury packaging market is segmented based on geography as North America, South America, Asia Pacific, Europe, and Middle East & Africa. The European region dominates the market due to the factors such as increasing flagship stores and the surge of demand in the online channel of distribution.  Other factors also include that the region is home to major luxury packaging manufacturers and thus the rise in tourist demand has been witnessed on luxury products.

These factors are driving the demand for luxury packaging in the region and are anticipated to exhibit a significant share in the forecasted period. The main markets in the region include Germany, France, and the United Kingdom. Whereas, the Asia Pacific is expected to witness the highest growth during the forecasted period due to the increase in disposable income and thus the rise in the expenditure by the consumers on them.  The large population and urbanization are leading to a change in consumer patterns and demand. For instance, according to the National Bureau of Statistics of China, in 2019, about 60.16% of the total population lived in cities. More consumers are demanding luxurious products and the rise in the penetration of the online channel of distribution and innovations in packaging is further expected to boost the market growth of the luxury packaging market.

Major industry players profiled as part of the report are Classypac, WestRock, Crown, Curtis Packaging, Fleet Luxury Packaging., Luxpac Ltd, McLaren, Berry M&H, Delta Global Source, and K-1 Packaging Group.

Luxury Packaging Market Scope:

Segmentation

The global luxury packaging market has been analyzed through the following segments:

• By Material
  • Paperboard
  • Metal
  • Glass
  • Textile
  • Plastic
  • Others
• By Application
  • Tobacco
  • Premium Beverages
  •  Watches and Jewellery
  • Confectionery
  •  Cosmetics and fragrances
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • UK
    • Spain
    • Others
  • Middle East and Africa
    • Israel
    • Saudi Arabia
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Others