E-Commerce Packaging Market

E-commerce Packaging Market

The global E-commerce Packaging market is valued at USD 77.4 billion in 2024 and is projected to reach USD 124.9 billion by 2029, growing at 10.0% cagr from 2024 to 2029.

The E-commerce packaging market refers to the businesses that provide packaging solutions to companies experiencing exponential growth because of the rising popularity of online e-commerce. The e-commerce packaging solutions can be used to cater the demands from several application areas such as electronics products, food items, apparel, etc. The growth of the market is driven by several factors, such as increasing e-commerce sales, rising demand for packaging solutions in the food & beverage industry, and growing technological advancements in packaging solutions. Apart from this, growing demand for sustainable packaging solutions also helps to drive the market. However, leading brands which are involving in providing the customizable packaging solutions helps to improve the consumer's unboxing experience and also impact the market in a positive way. Increasing adoption of smartphones and rise in internet activities have contributed to the growth of online shopping which consequently supports the growth of e-commerce packaging market. Increased international reach of e-commerce platforms such as amazon, etc. has also risen the demand for safe and secure packaging. As products which are sold online, travel long distances to reach the consumer base safely.

Attractive Opportunities in the E-Commerce Packaging Market

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E-Commerce Packaging Market Dynamics

Driver: Increasing use of the internet and smartphones

Due to an increase in smartphone usage and easy availability of the internet, it is going to help the e-commerce as this may lead to a increased online shopping activity. This change is taking place not only in the urban but also the rural areas, due to improved internet infrastructure. Customers are also using online platforms to order daily essential things such as groceries, electronic products, etc., due to the convenience factor. With the widespread adoption of the internet and smartphones, consumers nowadays ease an access to several online platforms, which allows them to search for a wide variety of products. This convenience helped to raise the demand for e-commerce packaging.

Restraint: Lack of appropriate recycling infrastructure

E-Commerce packaging is mostly made from paper and plastic materials, majorly plastics which is harmful for the environment. And this waste generated requires to be recycled. However, there is a lack of infrastructure for recycling packaging materials, which is going to add to the negative impact on the environment. With the absence of inadequate recycling infrastructure across the regions, it is impossible to divert the materials away from landfills. In addition to this, it is difficult for the manufacturers to implement uniform sustainable practices across the region. Moreover, mandates and regulations, from regulating bodies for sustainable packaging are becoming more and more forceful, and with the absence of proper recycling infrastructure, companies may face difficulty to comply with such regulations.

Opportunities: Brand identity creation using e-commerce packaging

To increase the sales, companies are using e-commerce packaging as a means to drive their profits. It involves graphics, use of decorative papers and plastics, vibrant colors which may attract the customers. This level of customization is a step towards increasing customer footprint. With the investment in creating innovative and attractive packaging solutions, manufacturers can create a long-lasting impression on consumers. In addition to this, creating innovative packaging solutions can be a crucial element in the customer’s unboxing experiences, which becoming a great marketing tool on social media platforms.

Challenges: Harmful effects of plastic on the environment

As stated earlier, e-commerce packaging majorly uses plastics, which is having harmful effects on the environment. It contributes to waste creation and some types of plastics used for packaging are not even recyclable. With the increasing e-commerce sales, the amount of packaging waste going into landfills and oceans also increases. However, with the increasing awareness towards environmental pollution, consumers and regulatory bodies puts a pressure on the manufacturers to provide sustainable packaging solutions. As a result of this, companies seek alternatives to plastic packaging in the form of biodegradable, compostable, or recyclable materials.

E-commerce Packaging Market ECOSYSTEM

By Material, Paper and Paperboards account for the second highest CAGR in the E-Commerce packaging market during the forecast period.

Paper and Paperboards have demonstrated the second-highest compounded annual growth rate (CAGR) in the E-Commerce packaging market. They are extensively employed for void filling and interior packaging to safeguard the items inside the box. Additionally, Paper and Paperboards are used in crafting paper bags and mailers, both of which are crucial for e-commerce packaging. Furthermore, they are known for being the most sustainable form of packaging due to their recyclability, which helps to minimize environmental impacts.

By Product Type, Mailers account for the second highest CAGR in the E-Commerce packaging market during the forecast period.

Mailers have the second-highest compounded annual growth rate (CAGR) thanks to their lightweight nature and cost-effectiveness. They are particularly useful for shipping small, delicate items. Mailers come in a variety of forms, such as bubble envelopes, padded envelopes, and poly mailers, which are chosen based on the specific type of item being shipped.

By Application, Food & Beverage segment has the second-largest CAGR in the E-Commerce packaging market.

In the e-commerce packaging market, the food and beverage segment accounts for the second-highest CAGR in the forecast period. Pacakging is considered very important for this industry because it protects the item in transit. The increase in online food orders through different platforms is driving the packaging segment. In addition to this, rise in online grocery shopping also helps to drive the market during the forecast period.

Asia Pacific is projected to account for the highest market share in the E-Commerce packaging market during the forecast period.

Asia Pacific is the largest market for e-commerce packaging market, due to increased use of packaging in countries like China, Japan, South Korea and India. Various factors like large population, increase in disposable incomes, are leading to this growth. And thus, Asia Pacific stands as the largest consumption market for e-commerce packaging. Apart from this, the region also witnessed the exponential growth in online sales, which supports the largest market share of the region in the market. Moreover, rapid urbanization, and expansion in the logistics infrastructure further boost the demand for packaging solutions, which drives the market of e-commerce packaging during the forecast period.

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E-commerce Packaging Market Players

The E-Commerce packaging market comprises key manufacturers such as International Paper (US), Amcor (Australia), Mondi Group (UK), DS Smith (UK), Smurfit Kappa (Ireland), and others. Expansions, acquisitions, joint ventures, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the E-Commerce packaging market. A major focus was given to the expansions and deals.

E-commerce Packaging Market Scope:

This research report categorizes the global E-commerce Packaging market on the basis of Product Type, Material, Application, and Region.

E-commerce Packaging Market, By Product Type

• Boxes
• Mailers
• Tapes
• Labels
• Protective Packaging
• Other Product Types

E-commerce Packaging Market, By Application

• Electronics
• Food & Beverages
• Fashion
• Cosmetics
• Furniture
• Other Applications

E-commerce Packaging Market, By Material

• Corrugated Boards
• Paper & Paperboards
• Plastics
• Other Materials

E-commerce Packaging Market, By Region

• Asia Pacific (APAC)
• North America
• Europe
• South America
• Middle East & Africa

The market has been further analyzed for the key countries in each of these regions.

Recent Developments

• In May 2024, Amcor launched its European Innovation Center in Belgium to develop sustainable packaging solutions and new designs.
• In April 2024, International Paper announced the acquisition of DS Smith plc, a British packaging company, to enhance its presence in the European market and grow the North American business.
• In February 2024, The Mondi Group completed the acquisition of Hinton Pulp Mill in Alberta, Canada, from West Fraser Timber Co. Ltd (Canada). This will help the company to produce kraft papers, which will be converted into paper bags. This acquisition will help the company serve consumers across the Americas region.
• In October 2023, International Paper invested USD 100 million to enhance the facility located in Rome, which has helped to boost the production capacity.
• In August 2023, Phoenix Flexibles Pvt Ltd., a manufacturer of flexible packaging for food, home care, and personal care applications, was acquired by Amcor. This deal has given Amcor access to advanced technology in flexible film packaging and increased its production capacities in sustainable packaging.
• In May 2023, Smurfit Kappa invested in expanding its plant in Polland by installing state-of-the-art technology. The investment in Poland includes the installation of a new high-tech corrugator and a range of ultra-modern converting machinery, which help to cater to the demand from several end-use industries such as food & beverages.
• In September 2022, Smurfit Kappa acquired PaperBox, a packaging plant in Rio de Janeiro. This has expanded the company’s footprint in Brazil to meet the growing demand for innovative and sustainable packaging.
• In May 2022, Smurfit Kappa launched a new water-resistant paper, AquaStop, which is water-resistant due to a unique coating that is applied to the AquaStop paper during manufacture. This coating, unlike many others, does not affect the product’s recycling ability. It can be recycled in the same manner as conventional paper-based packaging.
• In August 2021, Amcor partnered with the School of Packaging of MSU and unveiled a new alliance that reflects their shared dedication to developing future talent, fostering innovation, and responsible packaging solutions.
• In June 2021, In partnership with the Italian machinery manufacturer ACMI, Mondi Group developed a new pallet wrapping technique that employs paper rather than plastic.

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