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The global e-commerce packaging market size was valued at USD 43.10 billion in 2021 and is projected to grow from USD 45.21 billion in 2022 to USD 66.51 billion by 2029, exhibiting a CAGR of 5.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with e-commerce packaging experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global e-commerce packaging market exhibited a decline of -2.6% in 2020 as compared to 2019.
The rapid expansion of the e-commerce industry globally is driving the market growth. The demand for e-commerce packaging in developing economies is estimated to increase owing to the increasing number of smartphone users and the rising disposable income. The increasing number of online grocery sales channels will positively influence the market. According to Amcor plc, online grocery channel size in the U.S. is projected to reach USD 60 billion by the end of 2023. Furthermore, factors such as discount rates, combined packages, at-home delivery, and other services attract consumers to online platforms, resulting in high demand for this packaging. However, lack of awareness regarding e-commerce websites in rural regions will hamper the market.
Increasing Purchase of Essentials from E-commerce Platforms during the Pandemic to Fuel Market Proliferation
COVID-19 has given the purpose of sustainable e-commerce packaging innovation a deeper meaning. During the pandemic, packaging played an increasingly vital role in consumers' lives. Essential products such as food, personal protective equipment, hand sanitizer, testing kits, and vaccines reached consumers, businesses, and healthcare providers on the front lines. As a result of the coronavirus pandemic, change in consumer spending habits has increased e-commerce sales, and fear of contracting the virus, also as statewide lockdowns, kept consumers out of physical stores. Consumers showed interest in several new safety measures, with increased demand for sustainable, tamper-proof food packaging Bio-Pak Protect ensures food safety through third-party delivery services.
The high demand for personal care products to maintain hygiene is anticipated to be the critical factor contributing to market growth. Online grocery sales, fresh produce, and consumer essentials grew significantly during the COVID-19 crisis.
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Increasing Consumer Preference for Online Products to Boost Market Expansion
The increasing working population, rise in disposable income, hectic work lifestyle, and change in consumer behavior are the factors encouraging the online purchase of products. Online shopping platforms offer door-to-door delivery, return/refund, and discounted prices, making them favorable over brick-and-mortar businesses. Furthermore, increasing internet penetration and digitization activities in developing countries are anticipated to boost the e-commerce packaging market growth. Likewise, the expansion of online grocery sales channels across Asia, North America, and Europe is estimated to boost the consumption of such packaging.
Expansion of the E-commerce Industry Globally to Aid Market Augmentation
E-commerce websites have become consumers' first choice for purchasing goods due to various factors, such as easy browsing of products, at-home delivery, return/refund, and discounted prices. The rapid expansion of the e-commerce industry worldwide has enhanced the demand for e-commerce packaging solutions. The packaging is required to keep its integrity during the logistics and handle foodstuffs with several dimensions. The increasing internet penetration and the rising access to the internet among the population in emerging countries across the globe are projected to increase market growth.
The increasing working population, change in consumer behavior, and hectic lifestyle encourage market expansion. The increasing internet access and digitization activities in developing countries are expected to surge market proliferation. Also, the expansion of online grocery sale channels across Asia Pacific, North America, and Europe is estimated to boost the industry.
Increasing Demand for Online Shopping Bolsters Market Growth Worldwide
Rising preference for online shopping and increased demand for packaged food are major factors expected to drive the market over the estimated period. Customers' increasing demand for sustainable packaging solutions across the value chain, manufacturers, and environmental concerns is likely to grow this market.
According to the India Brand Equity Foundation (IBEF), Fast-moving Consumer Goods (FMCG) companies have seen significant growth in e-commerce sales, with 56% increase in the earliest quarter of 2020 and 38% increase in June 2020. For example, Dabur launched a line of Ayurveda baby care products exclusively on an e-commerce platform in August 2020. Thus, the packaging demand for e-commerce has increased over the forecast period.
Lack of Awareness of E-commerce to Hinder Market Growth
The lack of awareness regarding e-commerce platforms amongst the population in rural areas obstructs market growth. The e-commerce industry has gained the widespread interest of consumers, and governments are vigorously encouraging the implementation of new techniques to diversify business opportunities.
However, the rural sector in developing countries has been reluctant to adopt such practices. Limited access to the internet, inadequacy of disposable income, and lack of trust in online platforms amongst the rural population are a few factors impacting the online purchase of products. This is expected to hinder the consumption of packaging of e-commerce-related products globally.
The rising government rules concerning corrugated packaging is the primary factor restraining the market. Public concern about environmental protection will restrain market growth.
Paper & Paperboard Dominate the Material Segment Due to Affordability and High Recycling Rate
Based on material, the market is segmented into paper & paperboard, plastics, glass, and others. The paper & paperboard segment is the dominating segment owing to its renewable, sustainable nature. Unlike fossil-fuel-based plastic packaging, recyclable paperboard is the best choice for today's environmentally conscious consumers. As per North American Packaging Association, the paperboard packaging market is expected to remain steady over the next five years, with an average growth of 0.1% from 2019-2023.
Approximately 60% of paperboard packaging is used for food items such as beverages, dairy products, candy, dry goods, and frozen foods. The remaining 40% is used for packaging non-food items, including pharmaceuticals, cosmetics, personal care products, household items, toys, and sporting goods. These products can typically be found in grocery and club stores.
Increasing Demand and Popularity for Rigid Packaging will boost the Market
Based on packaging type, the market is segmented into flexible and rigid. The rigid segment is the fastest-growing packaging segment. Rigid packaging is further classified into corrugated boxes, bottles, cartons, hinged and lidded containers, and trays. Amongst the rigid packaging type, the corrugated boxes segment holds the largest share. Corrugated boxes are commonly used to carry heavyweight products such as appliances, electronic goods, wine, fruit, and vegetables. They are often used as a bulk shipper, distributing many similar products in the same box.
Moreover, the rising need for hinge lid containers, particularly in the food industry, storage, and medicine shipment process in the healthcare industry is expected to enhance the segment's growth. The demand for paper trays is increasing due to stringent government regulations and environmental concerns, which contributes to the growth of the rigid packaging type segment. Cartons also aid in rapid growth as they are an affordable and effective option for storage and shipping.
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Rise in Online Shopping to Aid Apparel & Accessories Segment Growth
Based on end-user, the market is segmented into food & beverages, pharmaceuticals, personal care & cosmetics, electronics & electricals, apparel & accessories, automotive, and others. Apparel & accessories is the dominating segment. According to a Dubai Chamber of Commerce and Industry report, Dubai's apparel and footwear market was valued at USD 5 billion in 2020. Several developing economies are expected to boost the apparel and accessories industries. China is the leading country in the Asia Pacific apparel & accessories packaging market. The easy availability of raw materials, steady economic growth, low-cost labor, and growing disposable income are the major factors that surge the demand for e-commerce packaging in the apparel and accessories industries worldwide. Moreover, with the emergence of COVID-19, the apparel and accessories sector witnessed massive growth, further driving the market growth of e-commerce packaging.
Asia Pacific E-commerce Packaging Market Size, 2021 (USD Billion)
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Asia Pacific is the dominating region due to an ever-increasing rise in e-commerce. The Indian e-commerce market was valued at USD 41.34 billion in 2021 and is expected to reach over USD 50 billion by 2025, according to the Associated Chambers of Commerce and Industry in India (ASSOCHAM), a trade association for the industry. North America is the second dominating region. An increase in research & development, working population, demand for ready-to-eat products, and demand for consumer electronic products benefited the North America e-commerce packaging market share. Europe is expected to witness significant growth over the forecast period. Increasing internet penetration and rapidly growing internet access for most of the population lead to the increase in the Europe market share. The rising product sales through e-commerce have driven the market in Europe. The market in Latin America has grown due to increasing demand for online shopping, internet usage, and the rising young population. The higher acceptance of fashion and different lifestyles has driven the Middle East & Africa market share.
Key Packaging Manufacturers to Reinforce Position Owing to Strategic Acquisition and Expansion
The market's competitive landscape depicts a semi-consolidated market with the top 15 e-commerce packaging companies accounting for a significant share of the market.Key players in the market have invested considerable resources in developing several products and technologies to produce them. The companies have adopted strategies of expansion, new product development, partnership, and acquisition to increase their regional presence and product portfolio.
Major players operating in the market include Amcor, Mondi Group, International Paper Company, and Smurfit Kapa. Significant companies constitute more than 50% of the market, and many regional and local e-commerce packaging players dominate the remaining market. Numerous other players operating in the industry are focused on delivering advanced packaging solutions.
An Infographic Representation of E-Commerce Packaging Market
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The research report presents a comprehensive industry assessment by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the report.
Furthermore, the report covers a detailed analysis of market segments, including material, packaging type, end-user, and regions, helping our readers get a comprehensive global industry overview.
Value (USD Billion)
By Material, Packaging Type, End-user, and Region
By Packaging Type
Fortune Business Insights study shows that the global market was USD 43.10 billion in 2021.
The global market is projected to grow at a CAGR of 5.7% in the forecast period.
The market size of Asia Pacific stood at USD 22.41 billion in 2021.
The rigid segment leads the market based on packaging type.
The global market size is expected to reach USD 66.51 billion by 2029.
The global expansion of the e-commerce industry is the primary factor driving the market growth.
The top players in the market are Amcor Plc, Mondi Group, International Paper Company, Smurfit Kappa, DS Smith, Klabin S.A., Georgia-Pacific LLC, Rengo Co., Ltd, Orara Packaging Australia Pty Ltd, and Berry Global.
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