Luxury packaging market in Asia Pacific to witness high growth to 2026
China is a key market driver for growth in luxury goods.
The luxury packaging market was valued at USD 16.65 billion in 2020 and is expected to reach USD 22.37 billion by 2026 and grow at a CAGR of 4.8% over the forecast period of 2021-2026, according to a new research by Reportlinker.
The use of luxury packaging for packaging and decorating high-end products is driving the market’s growth. Major packaging vendors are gaining access to numerous high-quality materials and innovative shapes, as these properties improved the consumer experience.
Factors such as changing consumer preferences, growing willingness to spend more, and rising focus of various brands on design, processes, and the overall product development drive the luxury packaging demand.
The report titled "Luxury Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)", indicated that the Asia-Pacific region is expected to witness the highest growth rate. The region is expected to grow due to the increase in disposable income and consumer’s spending on luxury products in the region.
Large population and massive urbanization have led to the rise in the adoption of urban lifestyle, due to the changing consumer patterns and the rising demand for luxurious products. According to the National Bureau of Statistics of China, about 60.16% of the total population lived in cities in 2019.
Sustainable packaging is also driving the market in the Asia-Pacific region. Manufacturers of high-end products are focusing on producing packaging by the help of bio-degradable materials. In addition, major international brands are focusing on eco-friendly luxury packaging solutions to maintain the sustainability goals.
The major key factors driving the growth of the market include a massive increase in the number of product launches in the fashion and cosmetic sector. The major international brands are eyeing on the emerging economies, such as China and India, to set up their stores in these countries, as these countries pose various growth prospects.
The rise in penetration of online retail and travel retail, increasing innovations in technologies in luxury packaging, and others are among various other factors, driving the growth of the market in the region.
China is one of the economies, which is increasingly being targeted by the leading luxury brands, as the country is fast turning into the world’s largest consumer of luxury goods. Chinese consumers are also looking for easy-to-use and quality food products. A surge in online retailing in China is expected to drive the demand for luxury packaging solutions.
Paperboard is Witnessing an Increased Adoption
Paperboard is one of the most popularly used materials in packaging. Some of the other used materials include metal, glass, plastic, and wood, among others. Most of these materials used are easily sourceable and, at the same time, help to establish a sense of premium quality in the minds of customers.
Paper and paperboards have maintained a strong position in luxury and premium packaging, with their ability to serve as the canvas for flawless graphics and eye-catching decoration. The features, such as laminations, unique coatings, super embossing, and debossing effects, make papers much more attractive in the packaging of luxury items. These packagings also provide superior strength and smoothness.
In the high-end wine and spirits segments, papers have always been popular label materials. The craft-beer brands use paper-labels to describe or advertise the products’ premium or handcrafted values.
Due to the worlwide lockdown due to COVID-19, the supply chain of the luxury packaging market was disrupted. But the market is recovering and is not supposed to create any significant effect in the long run.