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Environmental concerns and ecommerce trends are altering luxury packaging needs. Smithers Pira explores these trends and market growth rates in its new market report, The Future of Luxury Packaging to 2024.
According to Smithers report data, the global market value for luxury packaging is $15.38 billion in 2019. It is forecast at a rate of 3.0% year-on-year to 2024, yielding a market worth $17.83 billion. Western Europe is the largest market in 2019, but by 2024 it will likely lag below many less developed countries. Asia Pacific will take first place while Western Europe slips to second place.
The shift to online shopping means packaging companies are required to develop solutions tailored to the e-commerce industry. Challenges to solve include the growing need for returnable packaging options. Smithers’ data shows online sales of luxury goods were worth an estimated $31 billion in 2018. This is up by 13% from the previous year and equivalent to 9% of the overall luxury goods market. The data further projects an increase to almost 12% by the middle of the next decade.
Legislation and consumer concern aimed at curbing packaging waste and encouraging recycling is appearing across much of the world. The luxury packaging industry addresses the issue by including recycled material and reducing the amount of materials used (i.e. lightweighting). Despite sustainability efforts, plastic growth was highest in 2018 with an increase of 5.7% in value terms. The forecast reveals an increase by an annual average of 5.5% during the 2019–24 period. Paperboard will dominate in 2019 with value sales worth well over $6 billion, followed by glass and plastic.
For more information about the Smithers Pira market report The Future of Luxury Packaging to 2024, visit https://www.smitherspira.com/industry-market-reports/packaging/future-of-luxury-packaging-to-2024.
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