E-Commerce Packaging Market

E-Commerce Packaging Market Size-2023-2028

The E-Commerce Packaging market shares value is expected to grow at a CAGR of 17.12% during the forecast period 2023-2028 to reach USD 181.36 billion by 2028. 

E-Commerce Packaging Market Overview:

E-commerce packaging is an important step for the supply chain and logistics; it protects the products from damage during delivery and shipment. This E-commerce packaging should be strong and sturdy to protect the product from damage during rough handling. Using materials such as bubble wrap and air pillows during transportation helps in keeping the package safe, especially for fragile products. E-commerce packaging also provides an opportunity of creating a brand image by designing stylish logos and packaging styles. 

E-Commerce Packaging Market Drivers:              

Over the years, advanced technology, the increased use of smartphones, and the increase in the use of online shopping platforms because of their convenience it has led to an increase in the size of the E-commerce packaging market since E-commerce companies on a daily basis are handling large volumes of orders which requires efficient packaging for safe transportation and also needs optimized packaging solutions that deliver large packages with minimum cost. 

The rapid expansion of E-commerce is the major driving factor for the demand and growth of the E-commerce packaging market; this is because more and more consumers are opting for online platforms as a mode of shopping due to convenience and ease of use. Online shopping platforms have provided consumers with a diverse range of products, from electronics to apparel to groceries; this has attracted a large consumer base from all geographical regions. Therefore, to meet the demands of consumers, E-commerce packaging manufacturers and suppliers are developing innovative packages that protect the products from damage and also create a positive brand image. And provided a positive experience for customers, building more trust in e-commerce portals. Therefore, the growth of e-commerce and online shopping platforms has positively affected the E-commerce packaging market value positively.

 In the past years, the demand for food and groceries by the consumer through online platforms have increased drastically due to convenience and ease of use. The growing use of online shopping for fast delivery of groceries has led to the market demand for the E-commerce packaging market.  

E-Commerce Packaging Market Restraints:

The E-commerce packaging industry uses plastics as packaging materials, in the form of bubble wrap or air pillows, to protect the product from damage, but these plastics are non-biodegradable and non-recyclable, which, when entered into the ecosystem, harms the environment. This creates a major restraint and causes the implementation of strict rules and guidelines by the government. This causes restrictions and obstructs the growth of the E-commerce packaging market.  

There is growing awareness from the consumers and government for recyclable materials, but due to limited infrastructure, equipment, and facilities, the process involved in recycling materials is underdeveloped, which has restricted the e-commerce packaging market growth.  

E-Commerce Packaging Market Opportunities:

The increased standard of living and urbanization has led to a rise in the use of smartphones and the Internet, which has caused a surge in online shopping by consumers, and the numerous online platforms along with fast delivery. Hence, the growing number of users of smartphones and the internet will significantly increase the market demand for the E-commerce packaging market. In addition, as there is a growing awareness among consumers for eco-friendly packaging materials, this has created an opportunity for the E-commerce packaging market to develop eco-friendly, bio-degradable packaging material. Such initiatives have created opportunities for E-commerce packaging material to seek more sustainable packaging solutions for environmental safety.

COVID-19 Impact on the E-Commerce Packaging Market:

The impact of COVID-19 led to a surge in online shopping; due to restrictions and the implementation of the lockdown, consumers preferred the use of online shopping platforms for groceries and daily needs. Thus, the increased need for e-commerce led to increasing demand for the E-commerce packaging market. Also, because of health and safety concerns, the importance of maintaining hygiene was increased, which led the E-commerce packaging industry to take adoptive measures, which included protective covering with sanitization; this led to the building of trust in consumers for the E-commerce packaging market.  

Key developments in the market:

On 23rd June 2023, Dow Company, a multinational chemical company headquartered in Midland, Michigan, United States, and with Procter & Gamble China (P&G China) to develop recyclable air capsule e-commerce packaging; this air capsule has Dow’s ELITE AT high-performance PE resins and P&G China’s technology to discover an innovative way to protect products, as it reduces material weight by 40%, hence requiring only 25% of original trucking and 75% of less warehouse space. 

 On 21st June 2023, the sustainable E-commerce platform Boox made an alliance with Canada’s Package free returns to expand its services in Canadian Market. This will allow Boox to expand its business in the Canadian network. Hence it will offer solutions and services to industries across Canada. 

 E-commerce Packaging Market Segmentation:

 By Product 

• Corrugated Box
• Poly Bags
• Tapes
• Protective Packaging
• Mailers
• Others

The corrugated box segment has the highest market share; this dominance is due to its lightweight and the protection provided by the three layers of the box, the outer two layers, which give rigidity, the middle or inner layer, which is fluted, gives cushioning effect which protects the product from damage. Moreover, corrugated boxes are cost-effective. Therefore it is an affordable option for companies who ship materials in bulk. Also, corrugated boxes are one of the sustainable packaging materials which are environment friendly and do not harm the environment, and they can be recycled. Tapes are the fastest-growing segment since it is used widely while packaging products; tapes are used for sealing the boxes and packages, and it prevents the products from falling out of the boxes. Poly bags are usually used when the shipments are less fragile and small, such as vegetables, fruits, powder, magazines, and books; these poly bags are made up of plastic which is non-biodegradable and creates plastic pollution. Mailers are those packaging products that are used for delivering non-fragile products such as clothes, papers, and books. These mailers are generally made up of plastic or paper; it is affordable and used for shipping small items.   

By Material 

• Plastic

• Corrugated Board

• Paper and Paperboard

• Woods

The plastic segment holds the highest market share because of its low weight, affordability, and availability. The corrugated board segment has the fastest segment due to its wide usage in shipping and transporting fragile products and large items. Paper and paperboard material which is used in the packaging of food and beverages such as juice, milk, and cereals. Wood, as a packaging material, is mainly used for the transportation of fruits, electronic items, and automobiles. 

 By Application 

• Electronics and Electrical
• Apparel and Accessories
• Personal Care
• Household
• Food and Beverages
• Pet Food
• Pharmaceutical
• Others

Based on the applications, apparel, and accessories accounted for the highest share in the E-commerce packaging market due to their increasing trends, lifestyle, and high disposable income. Food and beverage are the fastest-growing segments, owing to the growing number of restaurants providing online food delivery systems, which makes consumers' life easy; also, the pandemic boosted the demand for online food delivery. The convenience and ease of use make this segment the fastest-growing segment. 

 By Region 

• North America
• Europe
• Asia Pacific
• Latin America 
• Middle East and Africa

Based on the region, the Asia Pacific segment dominates the E-commerce packaging market and has the highest market share; this dominance of this region is due to the growing economy, high disposable income, and rise in the number of mobile and internet users, which contributes to the expansion and growth of E-commerce packaging market in Asian countries such as India, Japan, and China. North America has the fastest growth due to advanced technology, such as artificial intelligence, 5G wireless network, and machine learning, also busy lifestyle and hectic schedule provides convenience for consumers, which leads to extensive use of online platforms for shopping. Europe has also forecasted to have significant growth due to a stable economy, busy lifestyle, and disposable income. Latin America has a steady growth in the E-commerce packaging market due to a rise in mobile and internet users. Middle East and Africa hold the lowest market share compared to other regions. 

 E-commerce Packaging Market Key Players:

• Amcor Plc.

• Berry Global Group, Inc.

• CCL Industries

• Coveris

• Sealed Air

• Sonoco Products Company

• WINPAK Ltd.

• Alpha Packaging

• Constantia Flexibles

• Mondi

• Gerresheimer AG

• Silver Spur Corp.

• Greif

• Transcontinental Inc.

• ALPLA