Christmas Packaging: Why Luxury will be Front and Centre in 2024

So far in 2024, there’s been one trend that’s dominated the luxury market. Eye-catching packaging designs that showcase brand stories have been all the rage on shop shelves and ecommerce sites alike. And they’re not set to budge any time soon.

Packaging is the differentiator between a brand that makes its mark and one that gets lost in the fierce competition of the season. This Christmas, brands need packaging that connects consumers with their values, evoking an emotional connection that brings them back time and time again.

With only a few weeks to go until the festive season is in full swing, we look at why luxury packaging is set to dominate the market. And, what you can do to make sure your goods are capturing attention in the most meaningful way.

Christmas Consumers: The State of Play

Whilst we’ve officially waved ‘goodbye’ to recession and inflation seems to be stabilising, costs are still higher than we’re used to. According to Mail Metro Media’s Retail at Christmas research, households can be split into a triad of categories. A so-called ‘three-speed UK’:

• 20% of the proportion of all adults fall into ‘healthy households’ whose finances are ‘healthy’
• Almost half (46%) whose finances are ‘okay’ are classed as ‘recovering residences’
• The remaining 34% fall under ‘difficult dwellings’, adults who are ‘struggling or in trouble’ with their finances

Though the contrast between households is distinct, all are interested in buying luxury goods this festive season. That’s due to the indulgent nature of Christmases gone by, where we could afford to invest in luxury products for our loved ones. Though ‘healthy households’ are more primed to enjoy a ‘normal’ Christmas (i.e. pre-2019) and ‘difficult dwellings’ will be struggling to make ends meet, there’s new demand for budget luxury products that ensure we all experience some form of opulence.

We’ve watched as own-brand luxury product ranges expand. They take up more room in shops than ever as we all look for a treat during a tough time. So, how’s the more affordable luxury player set to influence Christmas packaging trends?

Christmas Packaging Design Predictions

To start with, less expensive luxury goods are contributing to the expected 4.05% annual growth of the market. Traditional, luxury brands are having to compete against more affordable alternatives as well as their usual high-end competitors. Meaning, packaging is becoming more of a differentiator than ever.

This Christmas, we expect storytelling to be prevalent across designs to represent both brand values and festivity. Brands are also competing to appeal to, and lock in, the eco-conscious consumer. So, notable nods to sustainability (in both design and values) will be key to attracting and nurturing a loyal customer base. That’s something that simply can’t be overstated in this competitive market.

Trends We Expect to See in Luxury Christmas Packaging

As the late Steve Jobs famously said, ‘Design is a funny word. Some people think design means how it looks. But of course, if you dig deeper, it’s really how it works.’ Applying this sentiment to Christmas packaging, here’s the three trends we expect to see those competing in the luxury market to be relying on this year.

1. Immersive experiences that appeal to all senses

Loyalty’s more in important to luxury brands than ever. To ensure audiences are invested, storytelling with be at the fore of packaging – and in more forms than simply text. Expect to see interactive elements that send consumers to a space that continues telling the brand’s story. For instance, a QR code that directs to a loyalty reward scheme or exclusive membership.

We’re also anticipating texture to take more of a lead across packaging designs. Not only can it boost the memorability and unique nature of a brand or product, but it encourages consumers to interact with the package itself. The more senses appealed to, the more likely we are to get involved with the box.  And buy into more than just the product being sold.

Texture’s a powerful way of enhancing sentiment, too, particularly sustainability. By allowing consumers to touch, smell, or even play with the sustainable materials that make up a package, you’re able to immerse your audience in your brand’s sustainability story – rather than just tell it.

2. Minimalism and maximalism

This Christmas, there’ll be no in-between when it comes to minimalist VS maximalist designs. Brands will either continue with the tried and tested minimalist trend that’s dominated luxury packaging in recent years. Or, they’ll look to make their mark with maximalism, the design trend that’s pitching a comeback.

Loud fonts, zesty colours, and vibrant contrasts inspired by the 60s and 70s are being thrown into the ring by some luxury brands looking for new ways to capture attention in a crowded market. Whilst we’re fans of being ‘loud and proud’, maximalist packaging appealing feels niche given the overriding consumer preference for understated, sophisticated designs across this market.

If you’re wanting to try out maximalist packaging this Christmas, make sure you fully consider how – or even, if – it aligns with your brand’s identity and message. You don’t want to run the risk of alienating customers at the busiest time of the year!

3. A sprinkle of seasonality

Whether the word ‘normal’ can be used to describe Christmases in the post-pandemic era is subjective to our individual experiences. But it’s the value we’re all striving for. Particularly for the ‘recovering residences’ who have hopes for the most ‘normal’ Christmas of recent years.

Despite minimalist designs being the forerunner to take up the most space on shop shelves and ecommerce sites, that doesn’t mean the luxury market needs to shy away from incorporating seasonality onto their packages.

After all, the festive months are synonymous with:

• Celebrations with our loved ones
• Feeling cosy despite the cold outside
• Indulging ourselves in light of financially squeezed years

Luxury goods are primed to excel at Christmastime, and weaving elements of the season into the designs taps into the shared sentiments we all crave – and the Christmas sparkle we’re yearning for this year.

Set Your Brand Up for a Truly Golden Quarter

The first hints of Christmas are appearing on the high street and retail parks, and we’re looking forward to seeing how they play out in the coming months. In the meantime, we’re busy supporting clients to finalise the designs of their Christmas packaging ready for the season ahead.

It’s not too late to get started or make tweaks based on the above insight. Reach out to our team to find out how to make your Christmas packaging tell your luxury brand’s story for a truly golden quarter!