The Global E-Commerce Packaging Market was valued at USD 40.5 Bn in 2020 and is expected to reach USD 122.3 Bn by 2027, with a growing CAGR of 17.1% during the forecast period.
E-commerce packaging often refers to the packaging of products purchased through e-commerce websites. This packaging is done to ship the products ordered directly to the customers and differs from retail packaging, which is used for items that end up on store shelves. In e-commerce packaging, the warehouse is responsible for regulating the size, attractiveness, and efficiency of the packaging for the safe delivery of the product.
The e-commerce packaging market is accounted to boost at a significant pace in the forecast period. The market is majorly experiencing traction owing to the bolstering e-commerce market across the globe. High-rise in the penetration of smartphones combined with the increasing mobile internet users is the major factor driving the e-commerce market. As per the report “The Mobile Economy 2020” published by GSM Association, a global organization that represents the interests of mobile network operators across the globe, the total mobile internet users in 2019 stood at 3.8 Bn and is projected to reach 5.0 Bn in 2025. Smartphones have prominently helped in improving the convenience for customers by offering them easy access to information regarding products, delivery status, and shipping status. Additionally, smartphones have facilitated enterprises to reach more customers in remote areas and helped in bridging the services gap by providing service updates via their mobile app, e-mails, and SMS. Given the direct correlation between the e-commerce and the e-commerce packaging, the surge in the e-commerce market is expected to bloom the e-commerce packaging industry.
Moreover, the rapid adoption of consumer protection and cross-border policies are also prominent factors in driving the market. Several economies have launched favorable consumer protection laws and also relaxed cross-border trade regulations, which is helping in enhancing consumers’ confidence in e-commerce platforms. For instance, in June 2021, the Ministry of Consumer Affairs, India announced draft amendments in its Consumer Protection E-commerce Rules, 2020. These amendments are focused on resolving the grievances raised by consumers using e-commerce platforms and keeping a track of e-commerce malpractices. In addition, on February 1, 2019, India amended its FDI policy relating to e-commerce platforms that provides clarity and strengthens the regulatory framework governing FDI in the e-commerce marketplace. Such policies and favourable regulations are projected to drive the e-commerce market, thereby, the e-commerce packaging market.
By Material Type
By End-Use Industry
The unique insights provided by this report also include the following:
Based on material type, the corrugated material type accounted for the largest share in the e-commerce packaging market owing to the benefits offered by the corrugated boxes packaging
Based on material type, the e-commerce packaging market is segmented as corrugated boxes, paper, plastic, and other materials. Among these, the corrugated material type accounted for the largest share in the market and is expected to witness similar trends in the forecast years. This high share is primarily due to the benefits offered by the corrugated boxes packaging. Corrugated packaging facilitates e-commerce retailers with customization options making packaging extremely valuable and versatile for perfectly shipping the products. Corrugated box packaging also helps them in enhancing their customer satisfaction by providing them with a pleasant unboxing experience. In addition, this packaging is eco-friendly and cost-effective making it a perfect sustainable packaging solution. All these benefits offered by corrugated boxes are surging its market demand.
Based on the end-use industry, the consumer electronics segment dominated the e-commerce packaging market in the year 2020 due to the rising demand for smartphones across the globe
Based on the end-use industry, the e-commerce packaging industry is fragmented as fashion and apparel, food & beverages, consumer electronics, personal care products, and others. Among these, the consumer electronics segment dominated the e-commerce packaging market in the year 2020. The dominant share is mainly attributed to the rising demand for smartphones across the globe owing to the increasing digitization and technological advancements activities. In addition, e-commerce platforms have now gained consumers’ confidence in e-commerce platforms regarding aftersales support and quality deliverables. This has encouraged consumers to make multiple orders online and eventually boosting the e-commerce packaging market demand.
Based on regions, the Asia-Pacific is the fastest-growing region in the e-commerce packaging industry across the globe with rising consumer disposable income in various developing economies in the region.
Based on region, the e-commerce packaging market is segmented as Europe, North America, Asia Pacific, Middle East & Africa, and Latin America. Among these, the Asia-Pacific region is the fastest-growing in the e-commerce packaging industry across the globe. The growth in the region is mainly associated with rising consumer disposable income in various developing economies including South Korea, India, China, Indonesia among many others. Additionally, favorable investment by key market players is also expected to surge the market demand in the region. For instance, in April 2018, Amazon, made an addition of five fulfilment centers in major Indian cities including Bangalore, Mumbai, Gurgaon, Vijaywada, and Kolkata to hold its position being the biggest warehousing space providing company in India. Such actions are immensely supporting the e-commerce packaging industry growth in the region.
The report also provides in-depth analysis of e-commerce packaging market dynamics such as drivers, restraints opportunities and challenges
Note: Challenges along with an in-depth market dynamics analysis is mentioned in the report. .
The Covid-19 pandemic has majorly impacted the e-commerce packaging market across the globe. The pandemic has resulted in a dramatic loss of human life and presented an unprecedented challenge across all industry verticals. The outbreak also led to numerous employment losses and shifted consumers’ focus on essential goods which negatively impacted the retail e-commerce packaging industry. In addition, owing to disrupted supply chains due to the lockdowns implemented by several countries, manufacturers faced several challenges, such as obtaining key raw materials needed for the production, deliver end products to the market, and attracting workers from quarantines. However, in the post-lockdown phase, the market is rapidly returning to normalcy, witnessing the steadily increasing market demand.
The report also provides an in-depth analysis of key trends in e-commerce packaging market
The report also provides an in-depth analysis of recent news developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the e-commerce packaging industry are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.