E-commerce packaging refers to the protective materials and containers used to ship e-commerce products to customers. It includes corrugated boxes, protective packing, labels, tape, and different types of packaging designed for various products. E-commerce packaging plays a vital role in protecting products from any damage during transit. The e-commerce industry has witnessed tremendous growth over the past few years with rising internet penetration and increasing preference for online shopping among individuals. Packed products sold through e-commerce channels range from books, clothes, cosmetics, electronics to furniture.
The global E-Commerce Packaging Market is estimated to be valued at US$ 29.66 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The global E-Commerce Packaging Market is expected to flourish by the surge in online shopping across the globe. The growing penetration of smartphones and affordable internet connectivity have accelerated e-commerce activities, thus driving the demand for sustainable and effective packaging solutions. Another driver for the market growth is the changing consumer behavior and preference towards buying goods online due to the convenience offered through e-commerce portals. With evolving lifestyles, customers are increasingly opting for shopping from the comfort of their homes rather than visiting brick and mortar stores. Moreover, attractive discounts and bonus offers on online platforms encourage people to shop more frequently through e-commerce channels, thereby boosting the need for suitable packaging for safe delivery of products to customers. Manufacturers are focusing on developing lightweight and eco friendly packaging materials to lower carbon footprint and shipping costs.
Segment Analysis
E-commerce packaging market is broadly segmented into corrugated boxes, protective packaging, tapes, labels, and others. Corrugated boxes segment dominated the market in 2022 with a share of over 40% owing to the high usage of corrugated boxes for shipping a wide range of products due to their excellent protection against shocks and vibrations during transit. The protective packaging segment is expected to witness fastest growth during the forecast period due to increasing focus of e-commerce companies and retailers on safe delivery of fragile and valuable products to end-users.
PEST Analysis
Political: Growth of the e-commerce industry is backed by supportive government policies and initiatives promoting online shopping especially in developing countries.
Economic: Rising disposable incomes, growing internet and smartphone penetration along with increasing preference of consumers toward doorstep delivery are fueling demand for e-commerce packaging solutions.
Social: Change in lifestyle and busy schedules of modern consumers have increased preference for online shopping over traditional brick-and-mortar stores driving packaging needs.
Technological: Advancements in packaging materials and deployment of intelligent and automated packaging solutions are helping optimize packaging and reduce costs for e-commerce companies.
Key Takeaways
The Global E-Commerce Packaging Market Size is expected to witness high growth during the forecast period. The global E-Commerce Packaging Market is estimated to be valued at US$ 29.66 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030.
The Asia Pacific region is expected to be the fastest growing as well as the most dominant region in the market owing to strong growth of the e-commerce industry in countries such as China and India.
Key players operating in the e-commerce packaging market are 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.