Luxury Packaging Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 17.77 Billion |
| Market Size (2029) | USD 21.83 Billion |
| CAGR (2024 - 2029) | 4.20 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Luxury Packaging Market Analysis
The Luxury Packaging Market size is estimated at USD 17.77 billion in 2024, and is expected to reach USD 21.83 billion by 2029, growing at a CAGR of 4.20% during the forecast period (2024-2029).
- The market for luxury packaging is anticipated to grow during the forecast period due to the growing usage of distinctive and appealing packaging by businesses selling luxury goods. The market for luxury packaging is likely to grow rapidly due to the growing trend of eco-friendly and sustainable luxury goods and products.
- Luxury is becoming increasingly aligned with sustainability and re-use, driven by younger shoppers getting on board. The shift among a wider consumer base toward luxury, particularly in fashion, is accelerating by certain demographic groups adopting a more sustainable approach to consumerism, particularly in fashion.
- The luxury packaging market is witnessing significant growth, driven by its use in high-end product packaging and decoration. Leading suppliers are utilizing a variety of premium materials and advanced designs to enhance the shopping experience. This increased demand for luxury packaging is fueled by changing consumer preferences, a greater willingness to spend, and a growing focus from businesses on optimizing production methods and product development.
- The use of biodegradable and sustainable packaging is a significant market driver. As customers become more environmentally conscious and demand more sustainable lifestyle options, several businesses steadily emphasize sustainable development above everything else. Giorgio Armani's eco-friendly cosmetics box aims to raise consumer awareness of environmental sustainability.
- The international market is experiencing a growing demand for luxury packaging. However, certain challenges impede its growth. These include the substantial initial capital investment required to establish packaging manufacturing facilities and the widespread use of heavy and bulky packaging, which restricts the global expansion of the luxury packaging market.
- The luxury packaging market, like its broader packaging counterpart, faced significant setbacks due to the COVID-19 pandemic. The global industrial and commercial landscape was disrupted by this pandemic, leading to a notable slowdown in the luxury packaging market. Industries such as fashion, consumer goods, and personal care predominantly drive the demand for luxury packaging. With manufacturing disruptions, raw material scarcities, and supply chain interruptions, the output of many end-use sectors plummeted during the pandemic, subsequently dampening the appetite for luxury packaging.
Luxury Packaging Market Trends
Cosmetics and Fragrances are Expected to Drive Demand
- Increasing disposable incomes, particularly in emerging markets, are driving higher expenditures on premium products. This trend is further amplified by a growing emphasis on brand image and the necessity for product differentiation, making luxury packaging a crucial element in crafting the desired brand perception. Additionally, the influence of social media and consumers' desire to exhibit their lifestyles through their purchases are significantly contributing to the demand for visually appealing and high-end packaging.
- In China, online shopping has overtaken brick-and-mortar shops as the preferred method of purchasing cosmetics among consumers. In 2023, over 45% of China's cosmetic retail sales were made online. According to the National Bureau of Statistics of China, in 2023, the retail sales of cosmetics in China totaled about CNY 414.17 billion (USD 57.48 billion), registering an increase of 5.23% compared to sales in 2022. This growth in the sales of cosmetics is propelling demand for luxury packaging.
- The lifestyle and cosmetics sectors are experiencing a consistent increase in sales. As the demand for cosmetic products continues to grow in China's second and third-tier cities, the cosmetics retail market is expected to sustain its upward momentum. Additionally, the evolving perception among men regarding skincare is driving significant growth in the men's cosmetics market in China, which is further anticipated to support market growth.
- The demand for sustainable packaging for cosmetics and perfumes is growing with increased sales globally. In response, vendors are witnessing strategic collaborations. For instance, in January 2023, Dow and LVMH Beauty, a division of luxury conglomerate LVMH, partnered to expedite the implementation of sustainable packaging across LVMH's perfume and cosmetic products. This collaboration would facilitate the integration of both bio-based and circular plastics into various LVMH beauty applications, ensuring that packaging quality and functionality are maintained.
Asia-Pacific Expected to Witness Increasing Growth Rate
- Asia-Pacific is expected to register high growth during the forecast period, owing to the increase in disposable income and consumer spending on luxury products. Large populations and massive urbanization have led to a rise in the adoption of urban lifestyles due to changing consumer patterns and the rising demand for luxurious products.
- Furthermore, in the region, the market is experiencing growth driven by sustainable packaging initiatives. Manufacturers of premium products are increasingly adopting biodegradable materials for their packaging solutions. Prominent international brands are emphasizing eco-friendly luxury packaging to align with their sustainability goals and enhance their corporate social responsibility.
- The primary factors driving the market's growth include growth in product launches in the fashion and cosmetic sectors. The major international brands are eyeing emerging economies, such as China and India, to set up their stores in these countries, as they pose various growth prospects. For instance, in October 2023, Dow Personal Care expanded its sustainable portfolio with three new product launches at in-cosmetics Asia 2023. The launch of new products, including the Beauty Rebalanced 2.0 Concepts Collection and the Sustainable Hair Care Collection, underscores the company's dedication to providing a comprehensive portfolio of sustainable and high-performance solutions in the personal care sector.
- The expansion initiatives of cosmetics manufacturers in the region are projected to create demand for different luxury packaging solutions made of plastic and paper. In March 2024, packaged consumer goods company Hindustan Unilever Ltd (HUL) intended to significantly expand its premium beauty business. The company planned to enhance its premiumization strategy by accelerating growth across its existing personal care brands, such as Tresemme and Lakme. This initiative came three years after the introduction of a range of digital-first brands, underscoring HUL's commitment to capturing a larger share of the premium beauty market.
Luxury Packaging Industry Overview
The luxury packaging market is fragmented, and the new players are expanding their businesses into emerging regions. The high rate of competitive rivalry among international and regional players intensifies the competition. Key players include Amcor PLC, HH Deluxe Packaging, and DS Smith PLC.
- In December 2023, Innovative Beauty Group’s FASTEN Packaging company introduced Goodloop, its refillable and recyclable jar for cream products intended to combine luxury branding with sustainable progress. It is made of recycled PP and PET so that it can be fully recyclable. The pack constitutes a transparent outer jar and a curved inner portion, designed to provide a ‘sleek’ appearance.
- In October 2023, Wrapology, a London-based luxury packaging company that works with various high-profile, international, and emerging brands with a focus on design, was acquired by German carton and boxes specialist Carton Group. Through this acquisition, Carton Group planned to provide packaging solutions that not only surpass the functional requirements and expectations of its customers but also spark a strong emotional and promotional response from end consumers.
- In August 2023, in India, Ferrero Rocher Moments revamped its packaging strategy. The brand introduced pouches available in factory-packed hangsells and shelf-ready dispensers that are accessible across modern and traditional retail outlets, as well as on e-commerce platforms. This launch addressed consumer demands for self-consumption, sharing, and gifting. The new packaging preserved the premium essence and design elements of the classic Ferrero Rocher, utilizing gold-colored packaging and contemporary design patterns.
Luxury Packaging Market Leaders
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HH Deluxe Packaging
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Amcor Plc
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DS Smith Plc
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Crown Holdings, Inc.
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International Paper Company
*Disclaimer: Major Players sorted in no particular order
Luxury Packaging Market News
- August 2024: Mainetti, a global leader in packaging solutions, acquired Italian packaging specialist Morresi Enzo & C SRL. The acquisition will help the company expand its presence in Southern Europe and enhance its ability to deliver high-end packaging solutions to its growing customer base.
- January 2024: Curtis Packaging and HO Persiehl partnered in the luxury packaging sector. Both companies will jointly engage in sustainability efforts to advance greener practices in the industry.
Luxury Packaging Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumption and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Assessment of Impact of Macroeconomic Factors on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increased Usage of Sustainable and Bio-Degradable Materials such as Paperboard
- 5.1.2 Demand for Travel and Retail Chains Due to Increase in Tourism
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5.2 Market Restraints
- 5.2.1 Reluctance in Packaging Heavy and Bulk Products
- 5.2.2 High Initial and Operating Costs of Machineries
6. MARKET SEGMENTATION
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6.1 By Material
- 6.1.1 Paperboard
- 6.1.2 Glass
- 6.1.3 Metal
- 6.1.4 Other Material Types
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6.2 By End User
- 6.2.1 Cosmetics and Fragrances
- 6.2.2 Confectionery
- 6.2.3 Watches and Jewelry
- 6.2.4 Premium Beverages
- 6.2.5 Other End Users
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6.3 By Geography
- 6.3.1 North America
- 6.3.1.1 United States
- 6.3.1.2 Canada
- 6.3.2 Europe
- 6.3.2.1 United Kingdom
- 6.3.2.2 Germany
- 6.3.2.3 France
- 6.3.2.4 Russia
- 6.3.2.5 Rest of Europe
- 6.3.3 Asia-Pacific
- 6.3.3.1 China
- 6.3.3.2 Japan
- 6.3.3.3 India
- 6.3.3.4 Rest of Asia-Pacific
- 6.3.4 Latin America
- 6.3.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 DS Smith PLC
- 7.1.2 Crown Holdings Inc.
- 7.1.3 Amcor PLC
- 7.1.4 WestRock Company
- 7.1.5 Owens-Illinois Inc.
- 7.1.6 International Paper Company
- 7.1.7 Ardagh Group
- 7.1.8 Delta Global
- 7.1.9 GPA Global
- 7.1.10 HH Deluxe Packaging
- 7.1.11 Prestige Packaging Industries
- 7.1.12 Pendragon Presentation Packaging
- 7.1.13 Stolzle Glass Group
- 7.1.14 Keenpac
- 7.1.15 Elegant Packaging
- 7.1.16 Lucas Luxury Packaging
- 7.1.17 Luxpac Ltd
- 7.1.18 McLaren Packaging Ltd
- 7.1.19 B Smith Packaging Ltd
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
** Subject To AvailablityLuxury Packaging Industry Segmentation
Luxury packaging refers to high-end packaging solutions designed to elevate product perception and create a premium brand image. It involves the use of high-quality materials, intricate designs, and sophisticated finishes to appeal to discerning consumers and often incorporates elements such as embossing, debossing, foil stamping, and unique shapes.
The luxury packaging market is segmented by material (paperboard, glass, and metal), end user (cosmetics and fragrances, confectionery, watches and jewelry, and premium beverages), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Material | Paperboard | |
| Glass | ||
| Metal | ||
| Other Material Types | ||
| By End User | Cosmetics and Fragrances | |
| Confectionery | ||
| Watches and Jewelry | ||
| Premium Beverages | ||
| Other End Users | ||
| By Geography | North America | United States |
| Canada | ||
| By Geography | Europe | United Kingdom |
| Germany | ||
| France | ||
| Russia | ||
| Rest of Europe | ||
| By Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Rest of Asia-Pacific | ||
| By Geography | Latin America | |
| Middle East and Africa |
Luxury Packaging Market Research FAQs
How big is the Luxury Packaging Market?
The Luxury Packaging Market size is expected to reach USD 17.77 billion in 2024 and grow at a CAGR of 4.20% to reach USD 21.83 billion by 2029.
What is the current Luxury Packaging Market size?
In 2024, the Luxury Packaging Market size is expected to reach USD 17.77 billion.
Who are the key players in Luxury Packaging Market?
HH Deluxe Packaging, Amcor Plc, DS Smith Plc, Crown Holdings, Inc. and International Paper Company are the major companies operating in the Luxury Packaging Market.
Which is the fastest growing region in Luxury Packaging Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Luxury Packaging Market?
In 2024, the North America accounts for the largest market share in Luxury Packaging Market.
What years does this Luxury Packaging Market cover, and what was the market size in 2023?
In 2023, the Luxury Packaging Market size was estimated at USD 17.02 billion. The report covers the Luxury Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Luxury Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Premium Packaging Industry Report
The report covers the global luxury packaging market share and manufacturers. The market is segmented by material, end user, and geography. The market size and forecasts are provided in terms of value for all the above segments. Statistics for the premium packaging market share, size, and revenue growth rate are also included. Premium packaging analysis includes a market forecast outlook and historical overview.
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The industry information includes industry reports and industry sales. The market outlook and research companies are also covered. The report summary provides an in-depth analysis of the market, including growth rate and industry size. The industry research and market forecast are essential for understanding the market landscape. The industry trends and market leaders are highlighted in the report. The market segmentation and market value are detailed, providing insights into the market dynamics. The report PDF and report example are available for further reference.
