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Understanding Premiumisation: Trends and Opportunities

As consumer behaviour continues to evolve, the concept of premiumisation remains a significant trend in the global market. According to Euromonitor International’s proprietary Megatrends Quantification Model, spending on premium products and services is expected to grow at a 1% CAGR per capita from 2022 to 2032. Despite this modest growth, driven by high inflation and a challenging macroeconomic environment, the appeal of premium products persists. Here, report on these findings and considerations that Euromonitor highlight in their article, ‘Megatrends: Quantifying Premiumisation’.

 

What is Premiumisation?

Premiumisation refers to the consumer trend of purchasing higher-quality, more expensive products over cheaper alternatives. This trend is driven by a desire for superior quality, enhanced functionality, and improved overall experiences. Consumers are willing to spend more on products that offer specific benefits that align with their lifestyles and personal preferences.

Why Premiumisation Continues to Thrive

Despite economic challenges, consumers continue to value premium products for several reasons:

  • Wellness and Convenience: Products that offer health benefits or make life easier continue to attract consumers. The integration of wellness and convenience into premium products adds significant value.
  • Technological Benefits: Innovations, particularly those leveraging digital technology and artificial intelligence, are appealing. For example, Euromonitor noted UK health-tech startup Zoe, which uses AI to create tailored nutrition plans based on insights into an individual’s health.
  • Personalisation: Consumers prefer products that are meticulously tailored to their individual preferences. This trend towards personalisation means fewer purchases but of higher quality and relevance.

Affordable Premiumisation

In response to economic pressures, Euromonitor commented that brands are adapting by introducing affordable premiumisation solutions. This involves:

  • Material and Ingredient Adjustments: Reducing costs by substituting materials or ingredients without compromising on the perceived premium nature of the product.
  • Portfolio Realignment: Adjusting existing brand portfolios to offer premium products at slightly lower prices, maintaining their premium positioning while being more accessible.

The Role of Digitalisation

Digital technology plays a crucial role in enhancing premiumisation. Brands are increasingly leveraging digital platforms to reach consumers, particularly younger demographics such as Gen Z, who are more inclined to make purchases through social media. Platforms like TikTok are becoming valuable tools for engaging with this audience and promoting premium products.

How BlueSky Can Support Premiumisation Efforts

At BlueSky, we understand the unique challenges and opportunities that come with premiumisation. Our expertise in packaging solutions can help your brand stand out in this competitive market:

  • Custom Packaging Solutions: We offer a wide range of packaging options that can be tailored to reflect the premium nature of your products. From luxurious finishes to custom moulding and tooling, we ensure your packaging aligns with your brand’s high standards.
  • Sustainability: With consumers increasingly prioritising eco-friendly options, our sustainable packaging solutions, including infinitely recyclable aluminium, and PET with recycled content, can help position your brand as both premium and environmentally responsible.
  • Custom Packaging Boxes: We offer a range of custom packaging boxes that blend form, function, and finesse, ideal for premium brands. Our packaging solutions include luxurious finishes like soft matte and metallic accents, designed to captivate and reflect your brand’s quality. Advanced printing techniques, such as offset printing and cold/hot foil printing, ensure your designs come to life with clarity and striking metallic accents.
  • Personalisation: Our advanced printing and design capabilities allow for highly customised packaging that caters to the growing demand for personalised products. We continue to develop our offer, to ensure we cater to lower MOQs, meaning greater flexibility and access for you to quality premium end finishes.
  • Supply Chain Management: We manage the supply chain efficiently to ensure timely delivery and consistency, helping you maintain a steady market presence.

Premiumisation remains a robust trend, driven by wellness, convenience, technological benefits, and personalisation. Brands that adapt by offering affordable premium options and leveraging digital platforms to engage consumers are well-positioned for success. BlueSky’s expertise in packaging solutions can help your brand navigate and thrive in this premiumisation landscape, ensuring your products stand out and meet the evolving demands of today’s discerning consumers.

For more insights on premiumisation and to explore how BlueSky can support your brand, visit our knowledge base and discover our comprehensive range of packaging solutions designed to meet the needs of today’s consumers.

 

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