MAILER PACKAGING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global mailer packaging market size was valued at US$ 20.92 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 19.9% from 2024 to 2031. Mailer packaging comes in various types based on the item being shipped and mailing needs. The most common types are mailers, boxes, envelopes, pouches, and custom forms. Mailers are padded mailers used to ship smaller, lighter items like documents, photos, clothing, or accessories. They provide padding and protection during transit. Boxes are used for larger, heavier items that require more robust packaging. They come flat or assembled and can be customized with logos or branding. Envelopes are made of paper or plastic films for shipping flat items. Pouches made from plastic or Tyvek materials are best for irregularly shaped items or those needing moisture protection. Custom forms are designed for unique shipping needs.

Each packaging type has advantages and disadvantages. Mailers and envelopes are inexpensive but provide minimal protection. Boxes and custom forms offer more security during shipping but cost more to purchase and ship. Pouches provide water resistance and an easy to seal method. However, they are typically more expensive than other options. Choosing the right mailer packaging involves balancing the level of protection needed, shipping costs, and your budget. The ideal solution protects the product without overspending on materials not required for that particular item or transit conditions.

Global Mailer Packaging Market Regional Insights:

Asia Pacific dominates the global mailer packaging market and generated more than 41% of the revenue share in 2023. India and China are considered significant contributors to the growth of the market. The development of the mailer packaging market in the Asia Pacific is attributed to the developing industrial sector and the rising involvement of people in online shopping for goods. China holds the largest market revenue share owing to the presence of major key players in the nation and the wide availability of raw materials.

North America is considered the fastest-growing region and is projected to show significant growth during the forecast period. Established e-commerce and logistics industries are seen as the primary drivers of North America's mailer packaging market growth.

Europe is experiencing significant growth due to the increased utilization of paper mailers by e-commerce companies. An increasing number of consumers in the online shopping sector, especially in fashion, media, and electronics, is likely to maintain the growth of the European mailer packaging market.

Figure 1. Global Mailer Packaging Market Share (%), by Region, 2023

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Analyst Viewpoint:

The mailer packaging market is expected to grow steadily, driven by the increasing e-commerce sales and growing demand for easier packaging solutions. The demand for protective mailers is growing as more businesses realize their importance in preventing damage during shipment. However, rising raw material prices can hamper market growth to some extent. Meanwhile, the increasing adoption of sustainable packaging creates new opportunities for biodegradable mailer manufacturers.

North America dominates the global mailer packaging market currently due to the large volume of small shipments in the region. However, Asia Pacific is likely to witness the fastest growth in the coming years. This can be attributed to the rapid growth of the e-commerce industry in countries like China and India. Moreover, improving living standards and increasing consumer spending on online shopping are expanding the customer base for mailer packaging in Asia Pacific.

Customizable mailers, allowing companies to enhance their branding, are gaining more traction. Additionally, anti-tamper mailers with sealable opening and security features are increasingly demanded, especially for pharmaceutical shipments. Multi-purpose mailers that can be repurposed as bags or envelopes are also presenting growth opportunities. With more logistics companies focusing on parcel pick-up and return services, the demand for returnable mailers is surging.

Global Mailer Packaging Market Drivers:

• Evolving E-Commerce Landscape

With the growing proliferation of the internet and the advancement of technology, the business landscape has transformed significantly over the past decade. One area that has seen massive disruption is retail, where e-commerce platforms have enabled companies to directly reach customers online. As customers now expect seamless shopping experiences across various online and offline channels, retailers have expanded their presence on the web. According to surveys, millennials in particular demonstrate a strong preference for online shopping due to benefits like convenient browsing and ease of purchases from the comfort of their homes.

This evolution of the e-commerce sector has presented both opportunities and challenges for mailer packaging manufacturers. On one hand, the growth of online shopping has boosted demand for well-designed mailing packages that can safely transport goods to customers. Retailers recognize the importance of first impressions created through packaging, knowing it can influence customer satisfaction and chances of repeat purchases. As such, manufacturers have innovated and customized their offerings to cater to the unique requirements of e-tailers. However, the proliferation of single shipped orders through e-commerce has also resulted in a surge in packaging waste. This has put pressure on companies to develop more sustainable solutions made from recycled content or designed for reusability. Going forward, mailer packaging players need to continuously refine their product lines to keep pace with the innovations in online retail while addressing sustainability priorities.

• Sustainability Initiatives

With rising environmental concerns and regulatory pressures across the globe, sustainable practices have become a priority for businesses today. Packaging waste, in particular, constitutes a significant portion of global waste that ends up in landfills. As companies aim to shrink their carbon footprint and appeal to socially-conscious customers, adopting green alternatives has become imperative. Mailer packaging producers are making commitments to sustainability by exploring reusable and recyclable materials in their product designs. For instance, some manufacturers have launched paper-based envelopes made from recycled content that can be reused multiple times if unopened or recycled through curbside bins.

Government policies are also driving this transition, with various jurisdictions implementing strict restrictions on certain single-use plastic items. Compliance with such regulations necessitates the use of eco-friendly substitutes. Further, major retailers have set ambitious sustainability goals around packaging, which requires collaboration across the supply chain. This suggests a growing market for sustainable mailer solutions that can fulfill retailer commitments. Industry bodies, too, have started initiatives to promote the recycling of flexible plastic mailers. As societal expectations shift, mailer packaging brands enhancing their green credentials will be better positioned to tap into future opportunities. Though it may require an overhaul of existing operations, focusing on sustainability offers a competitive edge for manufacturers.

Global Mailer Packaging Market Opportunities:

• Innovation in packaging materials: Innovation in packaging materials could provide major opportunities for growth in the mailer packaging market in the coming years. As e-commerce and doorstep deliveries continue to rise globally, driven by pandemic trends, there is a big push towards developing sustainable and environment-friendly packaging solutions. Mailer packaging companies are well-placed to tap into this demand by adopting new bio-based and recyclable materials for their product offerings.

Some of the innovative materials that are gaining ground include bio-plastics, mushroom-based packaging, seaweed-based films and cardboard made from agricultural residues. According to the Food and Agriculture Organization, more than 225 million tons of agricultural residues are produced globally each year from rice, wheat, maize, potatoes, and other crops. These residues can potentially be used to manufacture cardboard and paper-based packaging solutions. Adopting these types of novel sustainable materials can help mailer packaging brands highlight their green and eco-friendly credentials to discerning consumers and businesses.

• Rising demand for customized mailers: The demand for customized mailers that can be tailored to specific customer needs is growing rapidly. As e-commerce and direct-to-consumer shipping continue to boom, businesses recognize the importance of creating unique, branded packaging experiences. Customized mailers allow companies to display their logos, messages, offers, and other marketing elements in a personalized way. This enhances customer satisfaction and brand engagement. It also helps products and brands stand out amidst rising competition. As consumers receive more packages than ever before, customized mailers provide an opportunity for businesses to make a strong first impression and last impression with their customers through innovative packaging.

This rising demand represents a major growth opportunity for companies in the mailer packaging  market. Packaging suppliers need to broaden their product lines and provide more customisation choices in order to take advantage of this. They might spend money on new printing technologies, for instance, that enable on-demand short runs, bespoke graphics, and variable data. More specialist materials, such as foil stamping and embossed graphics, can also be obtained from them. Personalized addressing and cut-to-shape capabilities will bolster their value proposition even more. For instance, statistics from the United Nations Environment Programme indicates that worldwide packaging waste increased by around 9% between 2020 and 2021.

Global Mailer Packaging Market Trends:

• Focus on development of eco-friendly and sustainable packaging materials: The increased focus on sustainable packaging over the past few years has significantly impacted the mailer packaging market. Many businesses and consumers alike are actively seeking out environmentally friendly packaging options in order to reduce waste. As a result, there is growing demand for materials that are recyclable, compostable, or made from recycled content. Traditional plastic mailers have come under scrutiny due to the huge volumes that end up in landfills. This has opened up opportunities for alternate materials like paper, corrugated cardboard, and plant-based resins made from sugarcane or bamboo. For example, a Dutch company has developed a home compostable mailer made from agricultural residues like straw and moss that completely breaks down within 6 weeks. Major shipment companies like UPS and FedEx have also announced goals to shift portions of their packaging portfolio to more sustainable options by 2025 in response to customer demand.

For instance, as per a study conducted by the United Nations Environment Programme in 2021, sustainable packaging startups raised US$ 1500 Mn globally from 2020 to 2021, more than double the funding from the previous two-year period. This influx of investment capital has accelerated the development of novel packaging solutions.

• Customizable and personalized packaging. : Customizable and personalized packaging has become increasingly popular in recent years. Consumers now expect packaging that reflects their individual tastes and preferences. They want brands to offer unique designs that allow them to showcase their personalities. This demand for customized experiences is driving growth in the mailer packaging sector. More and more companies are allowing shoppers to design their own mailers online. They can choose colors, materials, and textures and add personalization like names or photos. This gives buyers a feeling of control and ownership over the product they receive. Brands are leveraging new digital technologies and print-on-demand capabilities to offer this bespoke service. Packaging manufacturers have invested heavily in software solutions and automated equipment that enable highly customized designs to be printed single-filed or in short runs. The digital transformation has streamlined the production process and made personalized mailers commercially viable even for small volume orders. For instance: As per the U.S. Postal Service's 2021 residential mail volume data, direct mailers saw an increase of 4.5% compared to 2020 levels as more companies utilized customized options to stay connected with customers.

Global Mailer Packaging Market Restrains:

• Stringent government regulations on packaging materials: Stringent government regulations on packaging materials are creating challenges for the growth of the mailer packaging market. Many countries and states across the world have introduced strict rules around the usage of plastics and other materials to curb pollution and reduce carbon footprints. For example, the European Union enacted a directive in 2019 banning certain single-use plastic items that are difficult to recycle, like straws, plates, cutlery, etc., from July 2021. Similarly, in Canada, there are provincial bans on checkout bags, straws, and other plastic disposable items in few provinces. This is negatively impacting the mailer packaging industry, which relies heavily on plastic for envelopes and mailers. Alternative materials that are more eco-friendly come at a higher price, which increases production costs. Switching to sustainable options and changing manufacturing infrastructure requires large capital investments. This has reduced the demand from larger customers who seek cost-effective solutions. Industries that mail a large volume of documents and packages on a regular basis are exploring digital mail options instead to avoid costs associated with compliance with new standards.

For instance, as per a report by the United Nations Environment Programme (UNEP) in 2020, 166 governments have implemented regulations prohibiting or restricting single-use plastic bags due to their short lifespan and low rates of reuse.

Counter balance: Provide packaging designs that are both economical and compliant with laws. This can entail using creative, robust, lightweight materials that adhere to laws and regulations while leaving a smaller overall environmental impact.

• High capital investment requirements: The high capital investment requirements are indeed restraining the growth of mailer packaging market. Mailer packaging involves substantial infrastructure and machinery costs for setting up production lines. Manufacturers need to invest heavily in sophisticated packaging equipment, high-speed printing presses, cutting and folding machines, and advanced quality testing mechanisms to produce mailers on a large scale. This entails an enormous initial capital outlay that most small businesses cannot afford. Moreover, continuous technological advancements imply the need for constant upgrade and replacements of packaging machinery. Next-generation machines incorporate cutting-edge features like automatic feeding, digital printing, laser cutting, barcode scanning, etc., but come at a premium. For instance, a basic high-speed digital printing press can cost upwards of US$500,000 while an advanced flexographic printing line with multi-color capabilities exceeds US$1 million. Additionally, packaging companies need to maintain a sizeable inventory of raw materials like paper, films, and adhesives. Proper warehousing and logistic requirements further inflate the expenses. The high fixed costs act as a deterrent for new players to enter this industry.

Counter balance: Invest in R&D to find alternative materials and packaging solutions that comply with high capital investment without compromising on quality or functionality .

Recent Developments:

In September 2022, a U.K.-based product packaging company, Mondi, expressed that the company would present a range of sustainable solutions for mailer packaging at the FASHPACK event. FASHPACK is Germany's trade fair for packaging, packaging design, and machinery.

In February 2022, Pregis' EverTec mailer received an independent certification of recyclability. EverTec is a lightweight and cushioned paper mailer. It was developed to fulfill e-commerce businesses' demands.  Pregis headquartered in Chicago, they maintain a strong network of distributors, fabricators and converting partners with support teams ready to provide top-notch service.

With 24+ North American facilities, additional manufacturing operations across Europe and an expanded international presence, reach continues to scale with the growing global demand for a strong protective packaging partner.

In 2021, PAC Worldwide moved to broaden its footprint in the packaging sector with the strategic acquisition of The UPS Store's mailbox and postal operations. This key move was aimed at bolstering PAC Worldwide's position in the mailer packaging market, evidencing a tactical approach to business expansion within the industry.

Figure 2. Global Mailer Packaging Material Market Share (%), by Product  2023

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Top Companies in Mailer Packaging  Market

• Amcor
• Crown Holdings
• Oji Holdings
• West Rock
• American Packaging Corporation
• International paper

Definition: Mailer packaging refers to a type of packaging that is designed for shipping products through the mail or other delivery services. These packages are typically constructed to keep items secure during transit, taking into account the various handling and sorting processes they will endure. .Mailer packaging is an essential aspect of e-commerce and direct-to-consumer businesses, as it ensures that items arrive safely to the customer, contributes to the brand experience, and can also be designed to be easy to open and sometimes reusable or recyclable.