With consumer concerns and buying habits changing, the luxury packaging industry has experienced a number of new challenges in recent times. As a result, it makes sense to ask the question, “Has luxury packaging peaked?”
Challenges for luxury packaging
One of the key elements of change affected the luxury packaging industry is the growth and development of e-commerce. Consumers are buying more luxury goods online and this trend will continue to increase for some time. As a result, the demand for luxury packaging solutions that can safely be shipped will increase. Packaging manufacturers will have to consider ways to reinvent boxes and packaging whilst continuing to use the best materials, with the most extravagant branding and finish.
A further challenge is that luxury packaging should look appealing online and when it arrives in the post, as well as on the shelf or when unwrapped by a recipient. As e-commerce continues to grow, consumer preference is likely to shift online for a wider range of luxury products, even food, drink, and lifestyle items.
In 2019, packaging trends suggest that consumers are increasingly attracted to sustainable and environmentally friendly packaging solutions, even when it comes to packaging for luxury items. Legislation and consumer concern aimed at curbing packaging waste, using greener materials and encouraging recycling is appearing across the world.
As a result, brands and packaging manufacturers are having to re-think their luxury packaging materials. Marine plastic pollution has become one of the world’s most serious and well publicised environmental problems, so attitudes to single use plastic packaging are changing drastically. Packaging manufacturers are having to turn to sustainable and recyclable materials and cut out the use of plastic to show that they are environmentally friendly. It is predicted that paperboard will dominate in 2019, as packaging moves away from plastic and less sustainable materials.
Despite these challenges, Smithers Pira’s new market report, The Future of Luxury Packaging to 2024, suggests that the global market for luxury packaging is valued at $15.38 billion in 2019, and predicted to achieve a market worth $17.83 billion in 2024 (a rate of 3% increase year-on-year). Despite the challenges facing luxury packaging as a result of changing consumer trends and concerns, brands and manufacturers are adapting.
Rather than having peaked, luxury packaging is simply taking a different direction. Demand for luxury products continues, so as a result, there is also continued and increasing demand for luxury packaging that is seen to be environmentally friendly and suitable e-commerce.
One trend in consumer behaviour that can allow luxury packaging to have a stronger impact is that the 21stcentury consumer is less brand loyal. Rather than being tied to certain brands, consumers will simply make decisions based on not only price, but also which products are most visually impactful.
As we move into an increasingly digital world, this also provides the opportunity for luxury packaging to act as a gateway link to social media. Not only can packaging provide interactive barcodes and information to take consumers to brand websites and social media platforms, but the most luxury and visually appealing packaging is also the most share-worthy via social media. Luxury packaging has the potential to reach new heights.
Find out more about luxury packaging solutions for your brand
At The Packaging Experts, we specialise in bespoke, premium packaging solutions to meet your requirements. Our expert team will work with you to design packaging to engage all the senses. Please contact us today by calling 01256 352415 or email firstname.lastname@example.org to discuss your next project.