that’s not the case, and never has been. Over a decade ago, austerity didn’t hold back the luxury market and the signs are that the current economic downturn will barely touch the sides for the prestige and luxury sector.
At a time when prices are higher and citizens are watching the pennies, is the luxury market the one to be in? With people squeezed, goods in this category must be selling slowly – would anyone want to splash out right now?
Why is that, and why are so many still drawn to the sector. And what impact does that have on packaging specialists supplying to the market?
“Typically, we see a reduction in demand as consumers re-align their priorities,” commercial director at Pusterla Pollards. “However, the market has stayed strong through 2022’s economic challenges. It will be interesting to see how 2023 fares.”
The government’s tax cuts look set to fuel inflation, which is already running around 10%. And then there are energy prices, which are climbing ever higher. It is the perfect storm. The Bank of England is looking to hike interest rates again – perhaps hitting 6% next year ， At the time of writing the pound is plummeting。
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