Luxury Packaging Market Size, Share & Industry Analysis, By Material (Paper & Paperboard, Metal, Glass, Plastic, and Others), By Product Type (Boxes & Cartons, Bottles, Bags & Pouches, Cans & Jars, and Others), By End-Use (Food & Beverages, Fashion Accessories & Apparels, Beauty & Fragrance, Consumer Goods, and Others), and Regional Forecasts, 2024-2032

The global luxury packaging market size was valued at USD 17.98 billion in 2023. The market is projected to be worth USD 18.79 billion in 2024 and reach USD 28.23 billion by 2032, exhibiting a CAGR of 5.22% during the forecast period. North America dominated the Luxury Packaging Market with a market share of 33.2% in 2023.

Luxury packaging is an innovative packaging style that provides attractiveness to a product and enriches a brand’s image. The rapid growth of the e-commerce sector owing to digitalization and increasing consumer spending on online shopping will drive the global luxury packaging market share. Moreover, rising internet penetration, majorly through social media platforms, along with the increasing practical value of these packaging products among individuals, will spur the global market growth.

The production of luxury packaging products is highly dependent on the demand for premium beverages & food products, fashion accessories & apparel, and beauty products. However, during the COVID-19 pandemic, middle-class consumers purchased products that enhanced their health rather than luxury products, which in turn, negatively impacted the market’s growth.

Luxury Packaging Market Trends

Surge in Digital Transformation in Luxury Industry Emerges as Key Market Trend

The luxury market worldwide is experiencing a continuous digital transformation due to the introduction of new technologies to augment the consumer experience. Artificial Intelligence (AI), Augmented Reality (AR), and Virtual Reality (VR) are at the forefront, providing excellent shopping experiences and personalized customer interactions. Many luxury brands are providing exceptional services to their high and regular spending customers, such as round-the-clock chat support, digital doorman services, and elite online spaces. This is boosting the sales of luxury products, such as perfumes, cosmetic products, watches, and premium beverages.

Business of Fashion conducted a recent State of Fashion survey, wherein 73% of executives stated that Generative AI would become a priority for several businesses. Various AI tools can be a game-changer for fashion brands in the form of boosting their sales, building brand image, and improving consumer experience. Thus, the surge in digital transformation in the luxury industry will emerge as a key trend for the luxury packaging market’s growth.

Luxury Packaging Market Growth Factors

Increasing Demand for Customized Packaging Products Will Propel Market Expansion

The rising demand for customized packaging solutions is a key growth driver of the market. The growth in online retail platforms is also boosting the demand for customized packaging, thus enhancing market development. Major luxury brands are investing extensively in designing packaging solutions that protect the product, while serving as a tangible reflection of luxury and elegance. The rising demand for customized packaging has also helped brands create a positive perception about themselves and offer personalized experiences to their customers, making the unboxing experience memorable.

Personalized printed products are also in high demand. Several premium brands, particularly within the Scotch whisky sector, such as Glengoyne, Gordon & MacPhail, and Glenfiddich, offer personalized labels, particularly for gifting purposes with personalized messages to meet the growing demand from consumers. Such initiatives by brands and growing consumer demand for luxury packaging products will drive the market growth.

Surge in Utilization of Sustainable Packaging Solutions Boosts Market Growth

Increasing utilization of sustainable packaging solutions is a prime factor driving the global luxury packaging market growth. Many luxury gift boxes and cartons are designed with sustainability in mind. Many brands are utilizing eco-friendly raw materials and sustainable production methods to meet the growing sustainability demand customers, thus supporting the market’s development. Paper and paperboard are majorly utilized for manufacturing luxury boxes owing to their excellent strength, premium quality, and eco-friendly features.

Such sustainable materials can be reused and recycled at the end of their life cycle. Using these materials also proves the brand’s commitment to protecting the environment and gives environmentally-conscious consumers a positive impression of the brand. Recycling of sustainable materials is high in rate, thus boosting their usage for luxury products. The European Paper Recycling Council (EPRC) reported that in 2019, the percentage of paper recycled in Europe remained high at 72. Hence, the rise in the utilization of sustainable packaging solutions will aid the adoption of luxury packaging products.

RESTRAINING FACTORS

Bulky Packaging Solutions and Difficulty in Recycling Packaging to Hinder Market Growth

The market is expected to grow at a certain pace. Still, there are some reasons that can restrict its growth, such as the high upfront cost required to set up a manufacturing unit to undertake the packaging work. Moreover, heavyweight and bulky packaging can impede the expansion of the market. For luxury product packaging, several materials are bonded together, making their separation and recycling impossible. Moreover, it results in the creation of a large amount of non-recyclable waste when the unboxing process is completed. Furthermore, as luxury packaging production needs energy that usually uses fossil fuels, it results in air and water pollution. Hence, the high initial investment, bulky packaging products, and difficulty in recycling can hamper the market growth.

Luxury Packaging Market Segmentation Analysis

By Material Analysis

Remarkable Features Offered by Paper & Paperboard Materials Help Them Dominate Market

Based on material, the market is segmented into paper & paperboard, metal, glass, plastic, and others. Paper & paperboard is the dominating segment and projected to experience noteworthy growth during the forecast period. This material is highly preferred among manufacturers of luxury products. This surge in preference can be attributed to the sustainability and recyclability offered by the material. Moreover, high recycling rate & printability and unique coatings make the material more attractive as compared to others. Packaging products made from paper & paperboard material offer superior strength and versatility, making them suitable for luxury products, such as watches, jewelry, beverages, and perfumes.

Plastic is the second-dominant segment. Effective packaging is crucial for protecting delicate products that can easily break or damage during transportation. Plastic offers excellent protection to such products, thus driving the segment’s growth.

By Product Type Analysis

Augmenting Demand from Luxury Brands Bolsters Use of Boxes and Cartons

Based on product type, the market is segmented into boxes & cartons, bottles, bags & pouches, cans & jars, and others. Boxes & cartons is the dominating segment. Luxury cartons and boxes are custom-made to fit products, providing added protection over regular boxes owing to their sturdy nature. These products create a positive first impression and excite customers when they receive their purchase. They also serve as a powerful branding tool, further helping consumers remember the brand. Rigid boxes offer a variety of customization options to reflect the brand and what makes its customers loyal. The rising demand for boxes and cartons from various luxury brands will drive the segment’s growth.

Bottles are the second-dominant segment. The rising utilization in the packaging of premium wines and spirits will drive the segment’s growth.

By End-Use Analysis

Rising Consumption of Gourmet Food Products Drives Product Use in Foods & Beverages

Based on end-use, the market is segmented into food & beverages, fashion accessories & apparel, beauty & fragrance, consumer goods, and others. Food & beverages is the dominant segment and account for the largest share of the global market. Gourmet foods are often viewed as comfort foods and appeal to customers looking for small indulgences. There is a high demand among consumers for gourmet foods and drinks such as coffee, fine teas, baked goods, ice creams, chocolates, wine, and artisan cheeses. The growing transition to a healthier way of life is bolstering the demand for premium wines and other drinks.

Beauty & fragrance is the second-leading segment. The rising demand for perfumes, cosmetics, and other personal care products aids the segment’s growth.

REGIONAL INSIGHTS

The market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America is the dominant region in the global market. The rapidly expanding food & beverage sector will drive the regional market’s growth. The sales of luxury goods across the U.S. are also increasing in the e-commerce sector, thus boosting the market growth in the region. Luxury brands are majorly utilizing sustainable products and leveraging digital technologies to enhance consumer engagement and luxury shopping experiences, which, in turn, will emerge as a prime growth factor.

Europe is the second-dominant region in the global market. The region is home to some of the largest luxury companies across the world. The highest percentage of luxury companies primarily originate in Italy. In addition, France generates the largest percentage of luxury online sales and has consolidated its position in the highly saturated luxury environment over the years. The well-established luxury goods market in the region thus contributes to the market’s expansion.

Asia Pacific is the third-leading region in the global market. The changing consumer purchasing behavior and high demand for personalized products will boost the regional market growth. Luxury goods sales have skyrocketed in Latin America, exceeding pre-pandemic levels, thus aiding the market’s development in the region.

The Middle East & Africa market will see moderate growth during the forecast period.

KEY INDUSTRY PLAYERS

Key Market Participants to Witness Significant Growth Opportunities with New Product Launches

The global luxury packaging market is highly fragmented and competitive. A few significant players are dominating the market by offering innovative packaging solutions. These companies are constantly focusing on expanding their customer base across regions by innovating their existing product range.

Major players in the market include DS Smith, Ardagh Group, Stoelzle Glass Group, WestRock, Crown Holdings Inc., O-I Glass, Inc., and others. Numerous other companies operating in the market are focused on delivering advanced packaging solutions.

List of Top Luxury Packaging Companies:

• DS Smith (U.K.)


• Ardagh Group (Luxembourg)


• Stoelzle Glass Group (Austria)


• WestRock (U.S.)


• Crown Holdings Inc. (U.S.)


• O-I Glass, Inc. (U.S.)


• Amcor Plc (Switzerland)


• IPL Packaging Inc. (China)


• Thou Luxury Packaging (India)


• Elegant Packaging (U.S.)


• HH Deluxe Packaging (U.K.)


• Lucas Luxury Packaging (Ireland)


• Prestige Packaging Industries (France)


• Pendragon Presentation Packaging (U.K.)


• Ekol Ofset (Turkey)

KEY INDUSTRY DEVELOPMENTS:

• February 2024 – Fedrigoni, an Italian paper specialist, announced the purchase of selected assets of Mohawk Fine Papers, a U.S.-based specialty papers supplier. Both companies inked an industrial partnership to localize the manufacturing of luxury and premium packaging grades to fulfill the demand in the growing U.S. market.


• August 2023 – French luxury packaging group ATS announced the acquisition of DOOGOOD, a leading company in plastic injection and light solutions for the premium drinks sector. The acquisition helped ATS grow its scope of expertise, enabling it to provide its luxury clients with a wider range of solutions. DOOGOOD also brought new areas of expertise in-house with the strategic acquisition.


• February 2021 – Steklarna Hrastnik, a Slovenian glassmaker, inaugurated a new furnace for its extra white flint glass product by investing around USD 21.87 billion. The new furnace has a production capacity of 120 tons and is designed to produce extra white flint glass for cosmetics, perfumes, and spirits. The company also operated two furnaces at two sites in the town of Hrastnik, and it planned to upgrade its B furnace. This furnace would be fully dedicated to producing extra white flint glass for spirits and have a capacity of 165 tons by 2023.


• October 2020 – The Estée Lauder Companies (ELC) and Origins declared a sustainable packaging partnership with Albea & SABIC. Origins is a prestigious global skincare brand that offers high-performance natural formulas that has been proven by science. Along with its parent company, the ELC, the partnership with global chemical vendor, SABIC, and strategic beauty packaging manufacturer, Albea, was expected to bring an advanced recycled tube packaging product to the market.


• October 2020 – Breitling Company launched a foldable watch box made of recycled PET. The launch proved the significant efforts made by the company to produce sustainable packaging for luxury goods. From the fabric to the push buttons that open it, the watch box is designed with 100% upcycled PET bottles, which are among the most recyclable types of plastic.

REPORT COVERAGE

The report provides a detailed market analysis. The market overview also focuses on key aspects, such as top players, competitive landscape, product types, market segments, Porter’s five force analysis, and leading segments of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors that have contributed to the market’s growth in recent years.

Report Scope & Segmentation