Luxury packaging is the new trend and is likely to grow substantially between 2024-2029. Globally, it is estimated to grow at 4.2% CAGR. The Luxury Packaging market size is estimated at $17.77 billion in 2024, and is expected to reach $21.83 billion by 2029.
The main reasons driving luxury market growth include massive product launches in the fashion and cosmetic sectors.
Also major international brands entering the market’s growth include massive product launches in the fashion and cosmetic sectors. The major international brands are eyeing emerging economies, such as China, India, etc., to set up their stores in these countries, as they pose various growth prospects.
The food & beverages (F&B) segment is expected to generate hefty demand for luxury packaging segment due to increasing consumption of alcoholic beverages and cookies & biscuits. The target segment is estimated to hold around 51% of the market value share in 2033.
According to Naresh Khanna, Editor Packaging South Asia. Vice-president IPPO. Principal research consultant at IPPStar, this kind of packaging is being used by sweetmeat shop owners, chocolate brands and by cell phone manufacturers. This is due to increase in disposable income and consumer spending on luxury products. Large populations and massive urbanisation have led to a rise in the adoption of urban lifestyles due to changing consumer patterns and the rising demand for luxurious products. For instance, according to the National Bureau of Statistics of China, about 64.7% of the total population lived in cities last year. Moreover, sustainability goals along with luxury packaging by high-end brands is becoming fashionable.
Khanna said that through personalisation and customisation of luxury 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.
One big advantage of luxury packaging is that 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 a personalised way. From an average consumers’ perspective, personalization and customization