PACKAGING DESIGN SERVICES MARKET ANALYSIS

Global Packaging Design Services Market is estimated to be valued at US$ 24.63 Bn in 2023, and is expected to reach US$ 32.42Bn by 2030, exhibiting a compound annual growth rate (CAGR) of 4% from 2023 to 2030. The market is experiencing growth due to various factors including increasing demand for sustainable packaging, rising e-commerce sales, and growing consumer preference for packaging that is both visually appealing and informative.

In terms of segmentation, global packaging design services market is categorized based on material, end-user, and design type. The material segment includes Service Type, packaging type, industry vertical, design approach, target market, and by region.

Global Packaging Design Services Market- Regional Insights

• North America: North America is a significant market for packaging design services, and the market growth is driven by factors such as a well-established packaging industry, the presence of major consumer goods companies, and a strong focus on product branding and marketing. The region's emphasis on sustainability and eco-friendly packaging solutions further contributes to the demand for packaging design services. North America is the largest market for packaging design services, accounting for a share of over 35% in 2023.
• Europe: Europe is another prominent market for packaging design services, characterized by a high level of innovation and design-driven approach in the packaging industry. The region's strict regulations regarding packaging materials and environmental sustainability boosts need for creative and functional packaging designs. Growing e-commerce sector in Europe boosts demand for packaging design services tailored for online retail. Europe is the second-largest market for packaging design services, accounting for a share of over 25% in 2023.
• Asia Pacific: The Asia Pacific region presents significant growth opportunities in the packaging design services market. Rapid urbanization, increasing disposable income, and a growing consumer base contribute to demand for attractive and effective packaging designs. The region's thriving e-commerce industry and the rise of digital marketing platforms further boost the need for appealing packaging to enhance product visibility and customer engagement. Asia Pacific is the fastest-growing market for packaging design services, accounting for a share of over 20% in 2023.

Figure 1. Global Packaging Design Services Market Share (%), By Region, 2023

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Global Packaging Design Services Market- Drivers

• Increasing Demand for Sustainable Packaging: The growing awareness and concerns about environmental sustainability leads to increased demand for sustainable packaging Packaging design services play a crucial role in developing eco-friendly packaging designs that use recyclable materials, minimize waste, and reduce the overall environmental impact. The focus on sustainable packaging practices is driven by consumer preferences, government regulations, and corporate sustainability initiatives. For instance, Amcor, a global packaging company, introduced its first container for chocolate powder in Latin America in May 2021. The new container is designed to be recycled, which is a significant step towards reducing waste and promoting sustainability in the packaging industry.
• Rising E-commerce Sales: The rapid growth of e-commerce has transformed the retail landscape and significantly impacted the packaging industry. Online retailers require packaging designs that are not only visually appealing but also functional in terms of protecting products during transit. Packaging design services cater to the unique requirements of e-commerce, such as ensuring efficient packaging, brand differentiation, and a positive unboxing experience for customers.
• Growing Consumer Preference for Attractive and Informative Packaging: Packaging serves as a powerful marketing tool to attract consumers and communicate product information. Consumers are increasingly drawn to visually appealing and engaging packaging designs that reflect the brand's values and resonate with their preferences. Packaging design services enable companies to create innovative and captivating designs that enhance brand recognition, convey product features, and create a positive brand experience.
• Branding and Differentiation: In a competitive market, effective branding and product differentiation are essential for businesses to stand out. Packaging design plays a vital role in establishing a unique brand identity, enhancing product visibility, and influencing consumer purchase decisions. Packaging design services collaborate with companies to develop packaging designs that align with the brand's positioning, create a strong visual impact, and differentiate products from competitors.

Global Packaging Design Services Market- Opportunities:

• Customization and Personalization: There is an increasing demand for customized and personalized packaging designs to create unique and memorable brand experiences. By leveraging technology and digital printing capabilities, packaging design services can provide cost-effective customization options and enable brands to connect with their target audience on a deeper level. For instance , in 2020, Chumbak, a India-basedlifestyle brand that offers personalized packaging design to its customers, created a unique and memorable customer experience by customizing its packaging design.
• Integration of Interactive and Smart Packaging: The integration of interactive and smart packaging technologies presents significant opportunities for packaging design services. Interactive packaging engages consumers through augmented reality, QR codes, or NFC technology, offering additional product information, promotions, or interactive experiences. Smart packaging incorporates sensors, indicators, or tracking capabilities to provide real-time information on product quality, freshness, or tampering. Packaging design services can explore innovative ways to incorporate these technologies, enhancing the functionality and consumer engagement of packaging.
• Sustainable Packaging Innovations: The increasing emphasis on sustainability creates opportunities for packaging design services to develop innovative and environmentally friendly packaging solutions. This includes the use of biodegradable materials, compostable packaging, lightweight designs to reduce carbon footprint, and eco-friendly printing techniques. Packaging design services can collaborate with brands to implement sustainable packaging strategies and differentiate them in the market by appealing to environmentally conscious consumers.
• Emphasis on Convenience and User Experience: Convenience and user experience are key factors driving consumer preferences in packaging design. Packaging design services can capitalize on this opportunity by focusing on designs that are easy to open, resealable, and have intuitive functionality. Considerations such as ergonomic designs, single-serve packaging, and portion control can enhance the user experience and convenience, leading to increased customer satisfaction and brand loyalty.

Global Packaging Design Services Market- Trends

• Minimalist and Clean Designs: There is a growing trend towards minimalist and clean packaging designs. Simplified and clutter-free packaging with minimal graphics and typography creates an elegant and sophisticated aesthetic. This trend is driven by the desire for a more modern and streamlined look, as well as the preference for sustainable packaging materials that require less ink and resources.
• Use of Vibrant Colors and Bold Graphics: While minimalist designs are increasing, there is also a trend towards the use of vibrant colors and bold graphics to create eye-catching packaging. Brands are leveraging vibrant hues and striking visuals to stand out on store shelves and capture consumers' attention. This trend is particularly prominent in industries such as cosmetics, food and beverages, and lifestyle products.
• Incorporation of Eco-Friendly Elements: With the increasing focus on sustainability, there is a trend towards incorporating eco-friendly elements into packaging design. This includes the use of recycled or recyclable materials, biodegradable packaging, and eco-friendly printing techniques. Packaging design services are embracing this trend by offering sustainable design options that appeal to environmentally conscious consumers.
• Storytelling and Brand Narrative: Brands are using packaging as a medium to communicate their values, heritage, and unique selling points. Packaging design services are focusing on creating designs that evoke emotions, connect with consumers on a deeper level, and build brand loyalty through storytelling. For an instance, in December 2020, Coca-Cola is an American multinational corporation, drink industry, released new holiday packaging as an extension of their popular "Share a Coke" campaign. The holiday packaging featured festive designs and messages, such as "Merry Christmas" and "Happy Holidays," and was intended to encourage people to share a Coke with loved ones during the holiday season.

Global Packaging Design Services Market- Restraints

• Cost Constraints: One of the primary restraints in the packaging design services market is the cost associated with designing and developing packaging solutions. Brands may have limited budgets for packaging design, especially for small or emerging businesses. The need to balance cost-effectiveness with attractive and functional designs can be a challenge for packaging design service providers.
• Lack of Brand Differentiation: The market for packaging design services is highly competitive, with numerous providers offering similar services. This can lead to a lack of brand differentiation and make it difficult for packaging design companies to stand out from the competition. Differentiating their services and showcasing their unique value proposition can be a challenge in a crowded market.
• Evolving Consumer Preferences: Consumer preferences and trends are constantly evolving, and keeping up with these changes can be a challenge for packaging design service providers. Designing packaging that resonates with target consumers and aligns with their changing preferences requires continuous market research and adaptability.

Counterbalance: The cost of professional packaging design services can be high, especially for small and medium-sized businesses. This can limit the market growth as not all businesses can afford these services. There is a high level of standardization in packaging due to regulatory requirements. This can limit the scope for creativity and innovation in packaging design, thereby affecting the market for packaging design services.

Analyst View:

The packaging design service market is expected to grow at a significant rate during the forecast period. The rising demand for customized and attractive packaging from various end-use industries such as food and beverages, personal care, pharmaceuticals etc. is a major driver for this market. Companies are constantly focusing on product differentiation to gain consumer attraction through unique packaging designs. This has significantly increased the demand for packaging design services from brand owners. North America accounts for the largest share in the packaging design service market currently owing to strong presence of packaging companies. Asia Pacific is expected to grow at the fastest pace due to expansion of packaging firms in countries such as India and China. Shift of manufacturing base to Asia Pacific region by western companies will further support market growth. However, availability of low cost designing alternatives such as in-house designing teams can restrain the market growth to some extent. Increasing demand for visual-based designs, sustainable packaging formats and digital package designing are expected to create huge opportunities for service providers in the coming years. Companies are focusing on augmented reality and virtual reality enabled packaging to enhance product visualization for consumers. Growing e-commerce sector will also boost the need for attractive and secure packaging formats for door delivery. Packaging design agencies need to focus on varied end-use industries and tailored solutions to tap growth opportunities.

Global Packaging Design Services Market- Recent Developments

New Product Launches

• Esko: Esko, a leading provider of packaging design and prepress solutions, launched "ArtPro+ 21.1" in 2021. ArtPro+ is a packaging prepress editor that offers advanced tools and features for packaging design, artwork creation, and prepress production. The new version introduced enhanced collaboration capabilities, improved automation, and streamlined workflows to optimize packaging design processes.
• Schawk: Schawk, a global provider of brand imaging and packaging design services, launched "Brandimage Studio" in 2020. Brandimage Studio is a cloud-based platform that enables brand owners and packaging designers to collaborate seamlessly on packaging design projects. The platform offers real-time visualization, interactive editing, and asset management features to enhance the efficiency and speed of packaging design workflows.

Acquisition and Partnerships

• In 2021, Specialized Packaging Group is provides protective packaging products completed the acquisition of Packaging Concepts & Designs and Packaging Specialists Inc.
• In January 2023, Oliver Inc. is a packaging and printing industry acquired Tap Packaging + Design is a manufacturer of custom folding cartons, serving customers in food and beverage, beauty, confection, health and wellness, and consumer goods markets.

Figure 2. Global Packaging Design Services Market Share (%), By Service Type, 2023

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Top companies in Global Packaging Design Services Market

• Schawk, Inc. (SGK Inc.)
• Interbrand Corporation
• Packaging Corporation of America (PCA)
• Tetra Pak International S.A.
• Amcor plc
• Rieke Packaging Systems
• Landaal Packaging Systems
• Gerresheimer AG
• TricorBraun Inc.
• Design Packaging, Inc.

Definition: Packaging design services refer to the professional and creative solutions provided by design agencies or individuals to develop visually appealing and functional packaging for products. These services encompass various aspects of packaging design, including concept development, graphic design, structural design, material selection, and artwork creation. Packaging design services aim to enhance brand image, attract consumers, ensure product safety, and optimize packaging for marketing and logistical purposes.

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