Global E-Commerce Packaging Market - 2020-2027
The global e-commerce packaging market size was worth US$ XX billion in 2019 and is estimated to reach US$ XX billion by 2027, growing at a CAGR of XX % during the forecast period (2020-2027).
E-Commerce packaging is most commonly preferred by the warehousing, logistics and packaging companies which are supplying products through e-commerce channel. Online shopping demand has increased around the globe due to the ease and availability of a wide range of products. E-commerce packaging increased the optimal un-boxing experience which prefers a mix of the right box and the right infill with small details of the packaging of the product from an everyday delivery to a truly custom package.
E-commerce packaging is done through cardboard boxes, bags and envelopes, corrugated boxes, paperboard boxes, plastic boxes, foil sealed bags, chipboard packaging and recyclable packaging. These e-commerce packaging is used by the several end-user industries such as online shoppers, auto components, food & beverages, retail, pharmaceuticals, cosmetics & personal care products and among others.
The global E-commerce packaging is driven by rising online shopping trend due to rising number of internet users around the globe. Further increasing demand by the logistics services due to surge in the purchasing power of the people the ecommerce websites such as Flipkart, Amazon, Foodpanda etc.
Rising demand by the E-commerce with growing global population and growing consumers spending
The market is driven by surge in the online shopping through E-commerce websites with growing consumerss spending and surge in the number of the internet users around the globe. According to the UNCTAD, the global e-commerce sale increased by 13% in 2017 reached to around US$ 29 trillion this is primarily due to surge in the number of online shoppers, which are increased by 12% reaching to around 1.3 billion people that's is one forth of the world's population. It created massive demand for the E-commerce packaging market. ITU estimates that at the end of 2019, 53.6 per cent of the global population or 4.1 billion people are using Internet.
Rising number of the online websites due to growing demand to buy accessories, apperals, cosmetics and personal care products around the globe
Increase in the adoption and launching of the e-commerce packaging by the logistic companies due to growing demand to buy accessories, apperals, cosmetics and personal care products around the globe. For instance on 26th Nov 2019, online retailer outletsale launched e-commerce site named outletsale.com for european market to sale household products.
Regulatory issues from government regarding corrugated packaging and rising concerns towards environmental safety
Rising strict government rules and regulations for the e-commerce industries may hamper the growth of this market. For instance on 17th October 2020, Governent of India have issued notices to Amazon, Flipkart for not showing mandatory information such as mandatory display of 'country of origin' on the products.
COVID-19 Impact Analysis
The global E-commerce packaging market has shown immence demand due to the COVID-19 pandemic, as several leading players have launched e-commerce websites to faacilitate the services to the consmers of the necessary things such as foods, pharmaceutical medicines etc. For instance on 3rd Sept 2020, Macpac launched a new e-commerce site which provides bakery packaging and general food trays to the Horticulture range to the consumers.
Further several leading players have conducted campaign to help the consumers during the covid-19 pandemic crisis. For instance on 5th May 2020, DS Smith launched popular e-commerce packaging products for essential solutions through e-commerce websites which help SMEs transition through online trading. The company helped to provide packaging during covid-19 pandemic for essential services including products in a variety of sectors, including; food and drink, apparel and footwear, home and garden, health and beauty, Sports and leisure and pharmaceuticals.
The global e-commerce packaging market is segmented based on types, material, function, end-users and region.
Rising demand for corrugated packaging due to rising sale of the consumers electronics
In terms of type, the global e-commerce packaging market is bifurcated into corrugated boxes, paperboard boxes, plastic boxes, foil sealed bags, chipboard packaging, recyclable packaging and others. Among this corrugated boxes segment has the highest market share in 2019, this is primarily due to its demand for consumers electronics due to rising online sale which requires corrugated boxes for packaging.
Further rising initiatives of e-commerce websites such as Amazon, Flipkart to support its supply partners during Covid-19 pandemic helped the growth of e-commerece packaging sector. For instance on 3rd June 2020, Amazon has expanded packaging-free shipping (PFS) initiative in more than 100 cities in the India. PFS is a sustainable packaging solution in which customer orders are shipped in their original packaging without any additional packaging.
Increasing demand for the paper packaging using papers due to strict rules for plastic usage
Based on material, global e-commerce packaging market is divided into paper, plastics, glass and others. Among this, paper packaging segment has the highest share in 2019, this is primarily due to rising demand for packaging using paper material by the E-commerce leading players. For instance as per the India Brand Equity Foundation Organization, Indian E-commerce market reached to around US$ 38.5 in 2017 and is projected to reach US$ 200 billion by 2026. This is primarily due to rising penetration of the internet and smartphone.
Launch of decorative packaging for the packing of the gifts may boost the demand for this market
Based on fuction, global e-commerce packaging is divided into attract buyers attention, protect goods, decorative packaging and others. Among this, decorative packaging segment has the highest market share in 2019, this is due to rising the adoption and launching of e-commerce packaging based product with surge in the digital transformation and rising number of the internet users. For instance as per the India Brand Equity Foundation in 2019, India's total number of internet users in 2019 reached to around 636.73 million and is projected to reach to around 829 million by 2021.
Rising online shopping trend around the globe with surge in the presence of the e-commerce websites
Depending on end-user, global e-commerce packaging market is divided into apparels and accessories, online shoppers, auto components, food & beverages, retail, pharmaceuticals, cosmetics & personal care products, consumer electronics and others. Among this, online shoppers segment has the highest market share in 2019, due to rising mber of the online shoppers due to rising prevelence of the Covid-19 cases around thee globe. For instance as of 2020, around one fourth of the global population that is around 2.05 Billion people become online shoppers in 2020 (Oberlo).
Similarly apparels and accessories, online shoppers, auto components, food & beverages, retail, pharmaceuticals, cosmetics & personal care products, consumer electronics segments are also growing due to rising internet penetrationaround the globe as well as surge in the online E-commerce online drug delivery platforms due to Covid-19 pandemic all over the world. For instance on 20th August 2020, Reliance launched e-pharmacy by completing the acquisition of Netmeds Pharma Distribution Company for around US$ 84 million.
Asia-Pacific region holds the largest market share global E-Commerce Packaging market owing to rising population demand with surge in the internet users
Asia-Pacific region is dominating the global e-commerce packaging market accounted for the largest market share in 2019, due to rising number of the internet users and presence of the several manufacturing industries followed by North America. For instance, as per International Telecommunication Union in Asia-Pacific, around 63.2% of digital buyers are available in the region with India has 10.4% and Japan with 9.4% in 2019 whereas retail e-commerce industry in Asia-Pacific accounted for 10.2% of all retail sales in Asia-Pacific and is projected to rise to 20.4% by 2025.
Similarly, North America is also growing at fastest speed due to rising consumers spending, presence of the manufacturing facilities and presence of the leading e-commerce websites. As per corrugated Organization in the United States, there are over 1,154 corrugated manufacturing facilities with approximately 100,000 employees in nearly 1,000 cities and towns.
The E-Commerce Packaging market is moderately competitive with the presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include RENGO PACKAGING INC, Orora Packaging Australia Pty Ltd, SAN DIEGO PAPER BOX COMPANY, Spartan Paperboard, NIPPON PAPER INDUSTRIES CO., Roberts PolyPro, International Paper , Smurfit Kappa, Crawford Packaging , Georgia-Pacific , DS Smith, Mondi, Packaging Corporation of America, Salazar Packaging, Lil Packaging USA, Amcor Plc, Klabin S.A. and among others.
The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of the e-commerce packaging market globally. For instance, on 3rd July 2019, Amcor launched AmLite Ultra Recyclable, unique, recyclable, high-barrier flexible packaging that can reduce a pack's carbon footprint by up to 64% with new recyclable packaging.
Overview: DS Smith, founded in 1940, office based in San Diego, California, United States. IrieHemp is the global leading provider of packaging solutions, flexible packaging and bag-in-box solutions, paper products and recycling services.
Product Portfolio: The company has a diverse product portfolio of E-Commerce Packaging including: Packaging Design, Innovative packaging, Industrial Packaging, Retail and Shelf Ready Packaging, Promotional Packaging, POS Displays, Consumer Packaging, Corrugated Pallets, Recycling, and Paper
Key Development: DS Smith won award for the reusable e-commerce box with sustainable innovation at the Slovenian Packaging Oscar 2020.
The global E-Commerce Packaging market report would provide an access to an approx. 79 market data table, 74 figures and 230 pages.
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