How Luxury Goods Provide The Key Opportunity For Paper-Based Packaging

Paper Mart boxes have a great environmental record because paper is one of the most recycled packaging products today. Paperboard which is a paper-based packaging material is generally thicker than ordinary paper and it used for packaging of food and beverages. It is versatile, durable and lightweight enough so as not to impact on transportation costs.

Paper and paperboard packaging materials account for at least 35% of worldwide packaging sales with a total of about $280 billion (£180 billion) in 2013. Carton board and container board account for approximately 31% of the packaging market. The growth in paper-based packaging is driven by increased online sales in spite of the growing demand to reduce packaging.

The key drivers in the growth of paper-based packaging include growing GDP, changing demographics, convenience packaging, sustainability and recycling concerns, advances in technology, security and the drive for added value that is responsible for the innovations in luxury packaging.

However, much of the focus of research and development is towards plastic and not so much on paper but luxury goods provides the key opportunity for paper-based packaging. In luxury packaging, paper-based boxes have the biggest market share; glass has the biggest share in terms of volume. Paper packaging is growing by an average of 4.4% a year from 2014 to 2019 to reach £17.6 billion. Growth rate is highest in South and Central America at 9% but it is still growing at 3% in Western Europe and North America.

In Europe, there is increased competition and strong drive for brand and product differentiation at the luxury end of the market and this has resulted into a shift from standard to higher added-value folding boxboard grades. Brands in the beauty department are sold in packaging that is bigger because the perception is the bigger the more luxurious.

Technology is another reason for the growth in the luxury market. State-of-the-art print techniques that are more associated with magazines are used on luxury packaging which prevents counterfeiting. Digital interaction through print is one of the ways for luxury products to engage with their customers. Currently the vast majority of packaging products are conventionally printed but digital is expected to become more significant into that market.