The e-commerce packaging market is bolstered by increasing e-commerce sales around the world. E-commerce has transformed retail sector and it is gaining significant market share in place of conventional retail channels such as hypermarkets, supermarkets, and convenience stores.
Global E Commerce Packaging market was valued at US$ 26.3 Billion in 2021 in terms of revenue, exhibiting a CAGR of 6.2% during the forecast period (2022 to 2030).
The primary function of e-commerce packaging is to protect products from environmental damage and contamination such as dust, moisture, and microbes. Moreover, protection from damage is important for products such as electronics and furniture. E-commerce packaging is also important in terms of branding and customer retention. The use of sustainable and/or aesthetically appealing packaging material led to increased resale of products, according to a Stora Enso Oyj survey.
Sustainable e-commerce packaging is gaining major traction since recent past. Chinese e-commerce players such as JD.com and Suning.com are adopting reusable plastic boxes, which is cost-effective and generates low waste. JD.com also announced that it aims to raise the proportion of sustainable materials to 80% of its total packaging material used by 2025, due to high waste generation from packaging.
In terms of revenue, Asia Pacific held a dominant position in market in 2021, and is expected to maintain its dominance throughout the forecast period. According to Associated Chambers of Commerce and Industry in India (ASSOCHAM), an industry trade association, the Indian e-commerce market accounted for US$ 41.34 billion in 2021 and is projected to exceed US$ 50 billion by 2025. This can be attributed to an increasing internet penetration rate in India. The aforementioned factors coupled with strong GDP growth and increasing purchasing power of consumers will result in India being the fastest growing market for e-commerce in the world, which in turn is expected to boost growth of the e-commerce packaging market in the region. Amazon India, Flipkart, and Snapdeal are among the major e-commerce players operating in India. The e-commerce packaging demand in India will largely be dictated by the performance of these companies in market.
Figure 1. Global E Commerce Packaging Market Value Share (%), By Region, 2021
Lack of universal directives pertaining to applications of e commerce packaging is expected to restrain market growth during the forecast period. Every country has different directives pertaining to use and applications of e commerce packaging. Key players find it difficult to cope with such country wise regulations, which in turn is discouraging investment in the e commerce packaging industry, thereby restraining market growth.
|Base Year:||2021||Market Size in 2021:||US$ 26.3 Bn|
|Historical Data for:||2017-2021||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||6.2%||Forecast Period:||2022-2030|
Amcor plc, Mondi Group, International Paper Company, Smurfit Kappa, DS Smith, Klabin S.A., Georgia-Pacific LLC, Rengo Co., Ltd., Orora Packaging Australia Pty Ltd, and Nippon Paper Industries Co., Ltd.
|Restraints & Challenges:||
Rising access to the internet in developing & underdeveloped countries, emerging middle class population with disposable incomes, and the expansion of the clothing & footwear industry are main trends in the global e-commerce packaging market. Additionally, discounted rates, combined packages, and variety in product range have influenced consumers to buy products from e-commerce websites, thereby driving market growth.
Figure 2. Global E Commerce Packaging Market Value Share (%), By Product Type, 2021
On the basis of product type, the protective packaging segment held highest market share of global e-commerce packaging market 2021. It is expected to be the largest and the fastest growing segment throughout the forecast period. The segment’s dominance can be attributed to increasing electronics and food & beverages sales from online platforms.
Major players operating in the global e - commerce packaging market include Amcor plc, Mondi Group, International Paper Company, Smurfit Kappa, DS Smith, Klabin S.A., Georgia-Pacific LLC, Rengo Co., Ltd., Orora Packaging Australia Pty Ltd, and Nippon Paper Industries Co., Ltd.
E-commerce packaging includes boxes, protective packaging, mailers, tapes, and labels among others, which are utilized for packaging of products that are sold on online platforms. E-commerce packaging materials require properties such as impact resistance and moisture and dust resistance to protect products during transit and storage. The e-commerce packaging market has been driven by growth of the e-commerce market worldwide. Furthermore, growth of the retail industry has also contributed to growth of market.
Growth of e-commerce packaging is a result of increased online sales across application segments such as electronics, food & beverages, cosmetics, fashion, and furniture among others. The electronics segment was the largest application segment in 2021. Online electronics and fashion sales have witnessed a significant growth in the recent past, due to discounts, ancillary services, and logistical services offered by various e-commerce players. According to U.S. government sources, these application segments alone will account for 1/3rd of the total U.S. e-commerce market.
Asia Pacific is projected to exhibit the highest growth in market with India, China, and Indonesia being the major growth engines in the region. China, the world’s largest e-commerce market, has benefited from a large population and increasing internet penetration. According to the Chinese Ministry of Commerce, the e-commerce market in China accounted for approximately 39% of the global e-commerce market in 2021. Europe and North America are matured markets for e-commerce and are projected to witness stagnant growth compared to growth in emerging economies such as India.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section