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The global e-commerce packaging market size was USD 42.66 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with e commerce packaging witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge growth of 12.2% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 48.81 billion in 2021 to USD 140.86 billion in 2028 at a CAGR of 16.3% during the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
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 grow rapidly owing to the increasing number of smartphone users and rising disposable income. The surging number of online grocery sales channels will positively influence the online packaging products. According to Amcor plc, the size of online grocery channels 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 are attracting consumers towards online platforms, thereby resulting in the high demand for such packaging. However, the lack of awareness regarding e-commerce websites in rural regions will hamper the market.
Surge in Purchase of Essentials from E-commerce Platforms during the Pandemic to Fuel the Market
Amidst the COVID-19 pandemic, the market boomed. Majority of countries, including China, the U.S., and Germany imposed restrictions, limiting the movement of man and material. However, the e-commerce industry was exempted from these regulations due to the high demand for essential goods, such as groceries, medicines, vegetables, and other products from consumers. E-commerce platforms played an important role to prevent the transmission of the virus by limiting the movement of people and offering door-to-door delivery service. The pandemic increased the dynamism of the e-commerce industry across countries and broadened its reach to the geriatric consumer demographic, thereby boosting the demand for e-commerce packaging. According to the Organization for Economic Co-operation and Development (OCED), in the U.S., sales through e-commerce platforms between February and April 2020, increased by 14.8%, compared to the same period in 2019.
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Increasing Consumer Preference to Buy Products Online over Offline Stores is a Vital Trend
The increasing number of working population, rising disposable incomes, hectic work lifestyle, and change in consumer behavior are the factors encouraging online purchase of products. Hence, it is boosting the adoption of e-commerce packaging around the globe. Online shopping platforms offer services, such as door-to-door delivery, return/ refund, and discounted prices, which are making them favorable over brick and mortar businesses. Furthermore, the increasing internet penetration and digitization activities in developing countries are anticipated to surge the market growth. Likewise, the expansion of online grocery sales channels across Asia Pacific, North America, and Europe are estimated to boost the consumption of online packaging. According to Amcor plc, the online grocery industry in Europe is calculated to grow at 66% by 2023.
Expansion of E-commerce Industry Globally to Drive the Market
E-commerce websites have become the prominent choice of consumers for purchasing goods due to various reasons, such as at-home delivery, comfort, and easy browsing of products. The rapid expansion of the e-commerce industry globally has significantly boosted the demand for robust packaging solutions.
The packaging is required to maintain its integrity throughout the logistics and handle products with several dimensions. The increasing internet penetration and the growing access to the internet amongst the population in developing countries across the globe are estimated to boost the e-commerce packaging market growth. Furthermore, the increasing number of smartphone users and the rising young demographic population will support growth. According to Statista, the number of smartphone users worldwide is projected to grow from 3.4 billion in 2019 to 4.3 billion by 2023.
Lack of Awareness About E-commerce Platforms to Hinder Growth
The lack of awareness regarding e-commerce platforms amongst the population in rural areas will obstruct the growth of the market. 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 these practices. Limited access to the internet, inadequacy of disposable income, and the lack of trust on online platforms amongst the rural population are a few factors impacting the online purchase of products. This is expected to hinder the consumption of e commerce packaging. Additionally, poor infrastructure development and minimum knowledge about technology will also affect the market.
Corrugated Boxes Segment to Remain Dominant due to High Demand for Sustainable Packaging Solutions
Based on the type, the market is segmented into plastics, corrugated boxes, paper, and others. The corrugated boxes segment held the dominant e-commerce packaging market share in 2020. The dominance of the segment is associated with the advantages offered by these boxes, such as durability, resistance, recyclability, and minimum environmental impact. Changing environmental regulations and the growing demand for sustainable packaging solutions will also boost the growth of the segment.
The growth of the plastics segment is characterized by the expansion of personal care & cosmetics and fashion and apparel industries. Plastic bags and bubble wraps are flexible, lightweight, and allow e-commerce companies to ship more products, thereby saving the packaging and operative costs and fueling the demand for plastics globally.
The paper segment is estimated to witness substantial growth due to the increasing penetration of e-commerce in groceries and medical sectors. Furthermore, the rising substitution of plastic bubble wraps with eco-friendly paper shreds will surge the consumption of paper for e-commerce packaging applications. The growth of the others segment is characterized by the surging demand for customized packaging of e-commerce products.
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Consumer Electronics Segment Held the Largest Share in 2020
Based on the application, the market for e-commerce packaging is segmented into food & beverage, consumer electronics, personal care & cosmetics, fashion & apparel, and others. The consumer electronics segment held the highest share in the market in 2020. The growth of this segment is associated with the increasing demand for smartphones globally owing to the rising technological advancements and digitization activities. Furthermore, the rising population and increasing disposable income have significantly boosted the segment’s growth.
Food & beverage is expected to be the fastest-growing segment during the forecast period. The increasing working population and busy lifestyle will drive the adoption of e-commerce packaging in the segment. The growth of the personal care & cosmetics segment is associated with the availability of premium cosmetics products online at discounted rates. Additionally, the increasing awareness towards beauty and self-appearance has aided the segment’s growth.
The rising access to the internet, emerging middle class with disposable incomes, and the expansion of the clothing industry globally will augment the growth of the fashion & apparel segment. The others segment includes books, toys, furniture, and tools. Discounted rates, combined packages, and variety in product range have influenced consumers to buy products from e-commerce websites, thereby driving the segment’s growth.
Asia Pacific E-commerce Packaging Market Size, 2020 (USD Billion)
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The market in Asia Pacific stood at USD 23.04 billion in terms of revenue in 2020. The region occupied the dominant position in the market in 2020 and is projected to maintain its leading position throughout the forecast period. The dominance is primarily attributed to the increasing penetration of the internet, the rising number of smartphone users, and the surging young demographic customer base. Additionally, the presence of major e-commerce companies in the region, such as Alibaba, Kaola, and Flipkart will boost the adoption of online packaging services in the region.
The market in North America is growing at a swift rate due to the highest rate of internet penetration globally. Furthermore, the increasing impact of celebrity and influencer culture in the region will substantially fuel the market growth. The rising product sales through e-commerce platforms in Europe will drive the market in the region. In addition, the spurring demand for sustainable packaging solutions by consumers in the region will augment the market growth.
The growth of the market in Latin America is characterized by the increasing penetration of the internet, rising young population, and the rapid evolution of online shopping. In the Middle East & Africa, the higher acceptance regarding fashion and different lifestyle choices will surge the market growth.
Partnerships with Regional E-commerce Companies Will Augment the Presence of Key Players
The competitive landscape of the market is fragmented. Key players are adopting strategies, such as acquisitions and joint ventures to increase their presence in the market. Companies are partnering with regional e-commerce organizations to establish and increase their geographic presence. Furthermore, leading players are focusing on offering sustainable and customized packaging solutions to diversify their product range.
An Infographic Representation of E-Commerce Packaging Market
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The market research report provides a detailed analysis of the market and focuses on key aspects, such as profiles of leading companies, product types, and leading applications of the product. Besides this, it offers insights into the current e-commerce packaging industry trends, dynamics, and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.
Value (USD Billion)
By Type, By Application and By Geography
Fortune Business Insights says that the global market size was USD 42.66 billion in 2020 and is projected to reach USD 140.86 billion by 2028.
In 2020, the Asia Pacific market value stood at USD 23.04 billion.
Registering a CAGR of 16.3%, the market will exhibit decent growth in the forecast period (2021-2028).
The corrugated boxes segment is expected to lead this market during the forecast period.
The expansion of the e-commerce industry globally is the major factor driving the growth of the market.
Mondi Group, International Paper Company, and Amcor plc are the major players in the market.
Asia Pacific dominated the market in terms of share in 2020.
The rising demand for sustainable packaging and increasing consumer preference towards e-commerce platforms are expected to boost the demand for such packaging services.
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