E-commerce Packaging Market Size, Share & COVID-19 Impact Analysis, By Material (Paper & Paperboard, Plastics, Glass, and Others), By Packaging Type (Flexible {Bags and Pouches, Tapes, Wraps and Films, and Mailers} and Rigid {Corrugated Boxes, Bottles, Cartons, Hinged and Lidded Containers, and Trays}), By End-user (Food & Beverages, Pharmaceuticals, Personal Care & Cosmetics, Electronics & Electricals, Apparels & Accessories, Automotive, and Others), and Regional Forecasts, 2022-2029

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.

COVID-19 IMPACT

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.

LATEST TRENDS

Request a Free sample to learn more about this report.

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.

DRIVING FACTORS

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.  

RESTRAINING FACTORS

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.

SEGMENTATION

By Material Analysis

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.

By Packaging Type Analysis

 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.

By End-user Analysis

To know how our report can help streamline your business, Speak to Analyst

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.

REGIONAL INSIGHTS

To get more information on the regional analysis of this market, Request a Free sample

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 INDUSTRY PLAYERS

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.

LIST OF KEY COMPANIES PROFILED:

• Amcor plc (Switzerland)


• Mondi Group(U.K.)


• International Paper Company (U.S.)


• Smurfit Kappa  (Ireland)


• DS Smith (London)


• Klabin S.A (Brazil)


• Georgia-Pacific LLC (U.S.)


• Rengo Co., Ltd. (Japan)


• Orora Packaging Australia Pty Ltd (Australia)


• Berry Global (U.S.)


• Sealed Air (U.S.)


• Transcontinental Inc. (Canada)

KEY INDUSTRY DEVELOPMENTS:

• March 2022: DS Smith launched the corrugated cardboard box designed with a single-material solution. It is a more straightforward form of packaging than the original but gives excellent protection to the medical device and its several parts. This was particularly important as the device was being sold online, so the packaging had to withstand the challenges of being delivered by post. The new packaging is easy to recycle and offers better environmental protection across the entire supply chain.


• January 2022: Amcor plc introduced AmFiberTM, a new range of paper-based packaging products designed to offer improved features and functional benefits. This innovative platform aims to revolutionize traditional paper packaging and provide more sustainable packaging solutions that meet the evolving needs of consumers.


• December 2021: International Paper announced plans to invest USD 40 million in new converting equipment at various corrugated packaging plants in France and Spain.


• June 2021: Mondi's recent investment in its European plants to deliver approximately 350 million paper bags annually for the online retail industry. Paper-based MailerBAG is fully recyclable in existing paper waste streams and replaces the need for plastic packaging. The bags are made from kraft paper, a renewable material, and are completely reusable and recyclable.


• February 2021: Georgia-Pacific is increasing its production of curbside recyclable paper padded mailers to meet the growing demand for environmentally friendly shipping envelopes. The rise in e-commerce has led to a need for more sustainable packaging options, as both consumers and online retailers aim to increase the recyclability of their packaging.


• November 2020: Rengo Co., Ltd. introduced a new line of packaging materials called REBIOS, made from a blend of cellophane, paper, and biodegradable materials. These materials are produced at the Takefu Plant and aim to address the issues of ocean plastics and microplastics. 

REPORT COVERAGE

An Infographic Representation of E-Commerce Packaging Market

View Full Infographic

To get information on various segments, share your queries with us

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.

REPORT SCOPE & SEGMENTATION