The luxury packaging industry is about to enter a golden era of growth and innovation, says Smithers Pira in a new report sponsored by Asia Pulp and Paper.[hr]
Source: Packaging Europe
The report, titled “Paper-based packaging trends to 2019”, predicts a 19% increase in the global market for luxury goods packaging, reaching up to $17.6 billion. Cosmetics and fragrances will continue to be the main drivers of growth, increasing at around 6% per year over the next five-year spectrum, (currently, they account for over 40% of the sales).[hr]
The growth in demand has also driven diverse innovations and technology adoptions:
The brand protection global market, consisting of value-added tamper evidence, track and trace, product authentication, and anti-theft technologies, was valued at $2.33 billion just two years ago, (on 2013). Cosmetics is expected to exceed the $100 million within this category alone.
While very small yet, customization is growing steadily within this market. Premium alcoholic drinks are the ones most engaged with this trend, but other fields are recently adopting the personalisation for its benefits in building relationships with clients.
Identification (ID) & Quick Response (QR)
QR codes are experiencing a rise of use thanks to their inherent opportunities in storytelling, while also providing capabilities for smart product prototypes — able to communicate with users through NFC-embedded labels. We’re expecting to see more examples as this new technology finds ways to successfully blend with aesthetics.
Lee Henderson, Manager of European Sustainability and Stakeholder Outreach at Asia Pulp and Paper, pointed out that the proliferation of 3D printing could also accelerate the design-into-product process, enhancing innovation.
Furthermore, he reflected on the nature of consumers’ demand and the packaging industry as a whole:[quote]“Packaging that is sustainable, personalised, has the ability to interact with digital technology, prevents counterfeiting and uses the latest state-of-the-art printing technology is not just a demand of buyers of luxury goods, but reflective of general consumer preferences. The packaging industry should now plan for these trends to become the norm far beyond simply luxury packaging.”[/quote]
Adam Page, Business Manager at Smithers Pira, added the topping:[quote]“With the downturn affecting many parts of the paper industry, the growth of paper-based packaging remains a bright point for mills, converters, brand owners and retailers. Our research shows how the drive for luxury/premium solutions, innovative new technologies and the sustainability agenda is driving demand – and will continue to drive demand – in this segment of the packaging market.”[/quote] [hr]