E-commerce Packaging Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, UK, Japan, Germany - Size and Forecast 2024-2028

E-Commerce Packaging Market Size 2024-2028

The e-commerce packaging market is estimated to increase by USD 93.52 billion and grow at a CAGR of 27.11% between 2023 and 2028. The market experiences significant growth due to several factors. First, the thriving e-commerce industry drives demand for efficient and protective packaging solutions. Second, the increasing popularity of subscription boxes and the need for attractive and functional packaging add to market expansion. However, challenges remain. Complexities in e-commerce supply chains necessitate streamlined packaging processes. Regulatory compliance, particularly in relation to e-commerce packaging materials and labeling, is a critical concern. Lastly, optimizing packaging efficiency to reduce costs and minimize waste is a persistent challenge for market participants.

What will be the Size of the Market?

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Market Overview

In the dynamic e-commerce landscape, the packaging ecosystem plays a crucial role in ensuring the safe and convenient delivery of various products, including grocery products, apparels and Accessories, personal care, and food and beverages. The market for e-commerce packaging solutions is witnessing significant growth, driven by the increasing demand for At-home delivery in Developing economies and the rise of Internet enterprises. The packaging solutions encompass a wide range of materials such as Plastics, Corrugated boards, Woods, and Paper and Paperboard. Primary packaging, like Plastic bags and tapes, protects individual products, while secondary packaging, such as Corrugated boxes, Mailers, and Poly bags, ensures the safe transportation of assorted items. Customization and sustainability are key trends in the market. Fast fashion brands are increasingly focusing on eco-friendly and customizable packaging solutions to enhance their brand image and cater to consumer preferences. However, the challenge of managing Plastic waste remains a significant concern, necessitating the exploration of alternative, sustainable packaging materials. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The market is experiencing robust growth, fueled by the widespread adoption of e-commerce platforms. The market is experiencing significant growth in various regions, including the US, China, India, and the UK, due to the increasing tech-savvy population, Internet penetration, and the widespread use of smartphones.

Moreover, the demand for international products and cross-border shopping is also driving market expansion. Various packaging solutions, such as corrugated boxes, plastic mailers, tapes, and protective packaging, cater to the assortment of grocery products, electronics and electrical, apparel and accessories, personal care, household, food and beverages, pet food, and pharmaceutical items.  Hence, such afctors are driving the market growth during the forecast period.

Significant Market Trend

Rising concern for recyclable and sustainable packaging is a key trend influencing the market growth. The rising concern for the environment is boosting the demand for recyclable and sustainable packaging material. Eco-friendly packaging includes recyclable materials such as PET or HDPE plastic, cardboard, and paper packaging. After being properly sorted for recycling, these materials are shredded, shredded, or melted and reformed to be reassembled into raw materials for new packaging and other uses. 

Moreover, cardboard is also recognized as one of the most sustainable raw materials for these solutions. The box is made from cellulose or recycled waste paper and is biodegradable without harmful substances. Corrugated cardboard is mainly used for the production of folding boxes and corrugated boxes. Therefore, increasing use of eco-friendly materials for manufacturing packaging solutions is likely to stimulate the demand for sustainable packaging solutions in the global market during the forecast period.

Major Market Challenge

Stringent regulations on packaging products may impede market growth. The market has experienced significant growth due to the increasing popularity of online shopping and the subsequent complexities in the supply chain. E-commerce sales involve numerous touchpoints, including storage and fulfillment centers, transport providers, and sorting facilities, which necessitate robust and protective packaging solutions.

Moreover, smartphone users and various product categories, such as electronics and electrical, apparel and accessories, personal care, household, food and beverages, pet food, and pharmaceutical, require customized and high-quality packaging. Materials like corrugated boards, plastics, woods, and paper and paperboard are commonly used in the production of corrugated boxes, mailers, and tapes. Internet penetration and cross-border shopping have led to an assortment of packaging types, such as mailers and plastic bags, to ensure the safe delivery of goods.  Hence, such factors are hindering the market growth during the forecast period.

Market Segmentation By Type, Application and Geography

Market Type Analysis

The market share growth by the corrugated boxes segment will be significant during the forecast period. Corrugated boxes are made up of corrugated paperboard. They are highly durable, lightweight, crush-resistant, and can withstand external pressure, unlike cardboard boxes. Corrugated boxes help to keep products safe during transportation and shipping. Corrugated boxes ensure product safety and convenience while loading and unloading.

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The corrugated packaging segment was valued at USD 12.87 billion in 2018. In the e-commerce sector, corrugated packaging is used for packaging products, such as processed food, beverages, paper products, electrical and electronic goods, personal care products, textiles, vehicle parts, and others. Corrugated packages are available in different shapes and sizes which makes them a perfect choice for companies. Corrugated packages offer enough space to provide detailed information about the products along with extra graphics. Branding on packaging boxes is the sole point of interaction with consumers. All these factors positively impact the demand for corrugated packages. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Market Application Analysis

Based on the application, the market has been segmented into food and beverage, consumer electronics, personal care and cosmetics, fashion and apparel. The food and beverage segment will account for the largest share of this segment. The market is significantly driven by the at-home delivery trend and the convenience it offers to consumers. With global expansion and increasing door-to-door delivery services, the demand for packaging solutions is on the rise. Plastic waste is a concern, leading to the popularity of recyclable and biodegradable products. In underdeveloped countries and rural populations, innovative packaging approaches are essential for effective shipments. Consumer electronics, communications, entertainment, and fashion apparel are key end-user verticals driving market growth during the forecast period.

Market Region Analysis

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APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.  The market in APAC is experiencing significant growth, driven by the increasing trend of at-home delivery and convenience in underdeveloped countries. Global expansion of e-commerce businesses and door-to-door delivery services are fueling the demand for innovative packaging solutions. Plastic waste concerns are leading the shift towards recyclable and biodegradable products.

Moreover, FMCG sales, a major end-user vertical in Asian markets, are driving growth, with China accounting for a 6% increase in e-retail sales in the first half of 2021. The region's manufacturing industries, including consumer electronics, communications, entertainment, and fashion apparel, are also contributing to the market's expansion. The changeover period towards environmentally friendly and sustainable packaging solutions, such as paper-based packaging and frustration-free packaging, is ongoing. Hence, such factors are driving the market in APAC during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

BillerudKorsnas AB: The company offers e-commerce packaging solutions such as Amazon APASS certified in Packaging Materials and Design, Frustration Free Packaging FFP, PrepFree Packaging PFP, and Ships In Own Container SIOC.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

Amcor Plc, Cascades Inc., DS Smith Plc, International Paper Co., Klabin S.A., Koch Industries Inc., LivingPackets SA, Mondi Plc, Orora Ltd., Pregis LLC, RAJA Group, Rengo Co. Ltd., Sealed Air Corp., Smurfit Kappa Group, Southgate Packaging Ltd., Stora Enso Oyj, Tenneco Inc., Tetra Laval SA, and WestRock Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Customer Landscape

The market research report encompasses the entire market adoption cycle, ranging from the initial innovator phase to the subsequent laggard stage. It emphasizes adoption rates across various regions, determined by penetration levels. Additionally, the report outlines essential purchasing factors and factors influencing price sensitivity. This aids companies in assessing and formulating effective growth strategies.

 Customer Landscape

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Type Outlook 
  • Corrugated packaging
  • Protective packaging
  • Polybags

• Application Outlook 
  • Food and beverage
  • Consumer electronics
  • Personal care and cosmetics
  • Fashion and apparel

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentinca
    • Chile

You may also interested in below market reports:

• Secondary Packaging Market: Secondary Packaging Market by Type, Application, and Geography - Forecast and Analysis
• Protective Packaging Market: Protective Packaging Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, Canada, China, Japan, UK - Size and Forecast
• Container and Packaging Market: Container and Packaging Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, Canada, China, India, UK - Size and Forecast

Market Analyst Overview

The Market is a significant segment in the broader packaging industry. With the continuous growth of online shopping, the demand for e-commerce packaging solutions has become crucial for businesses to ensure safe and attractive delivery of their products. Corrugated and plastic boxes are popular choices for e-commerce packaging due to their durability and protection capabilities. Apparel and electronics are major categories that heavily rely on e-commerce packaging. Customized packaging solutions, such as mailers and poly bags, are essential for these industries to maintain the quality and appearance of their products during transit. Corrugated boxes, with their strength and versatility, are widely used for shipping heavy and bulky items.

Moreover, on the other hand, lightweight and cost-effective plastic boxes are suitable for smaller and lighter products. Wood and grocery products also require specific packaging considerations. Apparel and accessories may require hangers or garment bags for proper presentation. Food items need temperature-controlled packaging to maintain their freshness and quality. E-commerce packaging plays a vital role in branding and customer experience. Customized branding and personalized messaging can help businesses stand out in a competitive market. Additionally, eco-friendly and sustainable packaging options are becoming increasingly important for environmentally-conscious consumers. In summary, the market is a dynamic and essential sector that caters to the unique needs of various industries and products. It plays a crucial role in ensuring product safety, enhancing branding, and delivering a positive customer experience.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market trends and changes in consumer behaviour
• Growth of the market industry across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough market report analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market forecast analysis of factors that will challenge the growth of market companies

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