Rigid boxes have their name in the market, it is not wrong to say that these boxes are the other name of luxury. Their sturdy material makes them the pat of luxury packaging sector. Now these boxes are the popular choice for luxury item packaging like jewelry, fashion accessories, makeup, gourmet food, or wines. The market for custom luxury rigid boxes has been seen to rise tremendously.
Market Analysis
Growing Demand for Custom Luxury Rigid Boxes
According to the report by Grand View Research, the market of luxury boxes which also includes rigid boxes is expected to grow by 5.8% from 2024 to 2030.
Brands now prefer to get the packaging that best fits to their product. This increases the demand for custom luxury rigid boxes, not only do they protect the product but also due to their custom sizes, colors, designs, shapes, or even finishing options, they enhance the worth of the product like electronics, jewelry, or cosmetics. We can say that by adopting such packaging the brands fueled their popularity.
Rise in Printed Luxury Rigid Boxes
One step ahead in the customization is to choose the printing options. On the crowded shelves, the printed luxury rigid boxes always pop up and make themselves differentiate in the market. Visual appeal is always central to enticing customers. The box with unique patterns, graphics, and vibrant colors creates an exclusive brand image. Day by day we have seen the advancement in technology so integrating technology in the printing sector gives us the option of digital and offset printing. According to the study by Smithers Pira, it was confirmed that printed packaging can capture consumer attention and drive more sales as compared with non-printed packaging.
Market Expansion for Cardboard Luxury Rigid Boxes
Brands want to use packaging that is beautiful, functional, and more importantly cost-effective. But how is it possible? Here comes the cardboard rigid boxes which is more cost-effective as compared to traditional rigid packaging material. This packaging is best for eco-friendly consumers, now the manufacturers prefer recyclable and biodegradable materials. According to the report by sustainable packaging coalition the sustainable packaging includes cardboard packaging projected to reach $1 trillion by 2027.
Industry Challenges
Not only do these rigid boxes provide benefits but also have to face several challenges.
Rising Production Costs
If the customer demands customization then obviously requires large investments and also experience so it is difficult for the newbies to enter the market. Inflation rates have also touched this industry due to the rise of increased prices of materials like cardboard, printing inks, and finishing or coating material which increase the overall price of the box. If a brand wants to add high-quality printing it will contribute to raising the packaging cost. So this is the critical issue and the correct decision will save the brands from getting the best and at a low cost. One option is to go for Stock Rigid boxes so that the price per piece will become lower.
Short Lead Times
There is a lot of hustle and race among the competitors only the brand with the “perfect” product aligned with the perfect packaging can survive. Brands want to receive their packaging in just a few days without any delay and with high quality and zero errors and this requires time.
Seasonal Demand Fluctuations
There is a high demand surge for different occasions so the biggest challenge is to match the supply with demand and not to produce access or less than the demand.
Ongoing Innovation Requirements
One of the challenges the rigid boxes have to face is to meet the trends and always be up to date. The consumer wants a brand-new design, style, or innovative features. As technology is enhancing even in the packaging world it is necessary to adopt every new change in this industry.
Supply Chain Disruptions
What if there is a supply chain disturbance? The whole process will be disturbed if any department involved in this supply chain is delayed then the whole process will be affected. Not only this but any other disruptions caused by politics or geopolitical tensions also increased costs and delays. Brands can make contingency plans for this diversify their supply sources and invest in the supply chain.
Environmental Concerns
According to Nielsen, 66% of consumers globally are willing to pay more for eco–friendly brands. They also mentioned that there is a need for the packaging industry to make their process eco-friendly.
It has been seen that consumers all over the world are now aware that they should keep the planet healthy. So cardboard rigid packaging is the preference as compared to the plastic alternative. This shift is not only a regulatory requirement but also the demand from the customers and this creates pressure on the manufacturers to adopt sustainable practices.
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