Why The Growth In Demand For Luxury Items Is Driving The Demand For Paper-Based Packaging

Paper Mart packaging products are an important component of many industries that require a cost efficient method of preserving, transporting and protecting a wide array of items. Packaging products come in different designs, sizes and shapes to meet the requirements of customers. Packaging is used on almost everything from food, beverages, electronics, glassware and perishable goods.

According to report made by Asia Pulp and Paper, the global market for luxury goods packaging currently stands at $14.2 billion (£9 billion) in 2014 and it is expected to increase by 19% come 2019 to reach $17.6 billion (£1.2 billion). 43% of the sales of luxury products are cosmetics and fragrances and it is predicted that such items will continue to drive the growth within the sector. In the next 5 years, growth is anticipated to be 6% per annum.

In Western Europe and North America growth will range from around 3% per annum, 6% in Asia Pacific and about 9% in South and Central America. Growth in demand will drive innovations in the market and it will be facilitated by new technology including the increased prevalence of sustainable solutions, consumer awareness on sustainability issues, incorporation of counterfeiting measures and growth in personalization and coding.

According to Lee Henderson, the manager of European Sustainability and Stakeholder Outreach at APP, the industry is about to enter the golden era of product development. A period of unprecedented innovation in the market will be unlocked by the increase in demand for luxury goods and the introduction of new technology.

3D printing will enable manufacturers to transform designs into products in a relatively short period of time. Industries can expect new brands to be introduced to the market. Trends in luxury product packaging are the indicators of what other segments of the industry can expect. The packaging industry should now plan for packaging that is sustainable and personalized with the ability to interact with digital technology so that counterfeiting can be prevented.

After the downturn in the economy that has severely affected the paper industry, the growth of paper-based packaging is good news for paper mills, converters, brand owners and retailers.