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The e-commerce packaging market size is forecast to increase by USD 93.52 billion at a CAGR of 27.11% between 2023 and 2028. The market is experiencing significant growth due to the rise in online spending and the increasing number of Internet enterprises. The packaging ecosystem in this sector is complex, with a focus on at-home delivery and convenience. Global expansion of e-commerce businesses is driving the demand for packaging solutions that can withstand long transit times and ensure product safety. Recycling facilities and the use of recyclable and biodegradable products are becoming essential trends in the market, as consumers and governments push for more sustainable practices. Plastic waste reduction is a major challenge, with many companies exploring alternatives such as plant-based materials.
Furthermore, door-to-door delivery services are also increasing the demand for packaging that can withstand the rigors of transportation and protect fragile items. Overall, the market is evolving to meet the changing needs of consumers and businesses, with a focus on sustainability, convenience, and cost-effectiveness.
The market is experiencing significant growth due to the rise in online shopping, driven by the increasing penetration of the internet and the convenience of at-home delivery. The market is segmented into various types of materials, including plastics, corrugated boards, and woods. Smartphones and apparel and accessories are major product categories driving the demand for protective packaging solutions such as corrugated boxes, poly bags, tapes, mailers, and plastic and paper-based packaging. Customization is a key trend in the market, with consumers seeking personalized packaging for their grocery products, personal care items, and fast fashion apparel. The use of sustainable materials like recycled plastics, biodegradable plastics, and paper and paperboard is gaining popularity due to concerns over plastic waste.
Furthermore, the packaging ecosystem for e-commerce includes internet enterprises, primary packaging providers, and secondary packaging providers. Developing economies are expected to offer significant growth opportunities due to increasing disposable income and urbanization.
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.
The corrugated packaging segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the increasing trend of Online spending and the expansion of Internet enterprises. At-home delivery services have become a convenience for consumers, leading to an increase in demand for reliable Packaging solutions. The Packaging ecosystem is shifting towards more sustainable options, with a focus on recycling facilities and the use of recyclable and biodegradable products. Corrugated boxes, made from eco-friendly and recyclable corrugated paperboard, are gaining popularity due to their durability, lightweight, and crush-resistance. These boxes ensure product safety during transportation and shipping while reducing the carbon footprint and environmental hazards posed by non-biodegradable and plastic-based packaging materials.
Furthermore, door-to-door delivery services are further driving the demand for corrugated boxes, as they can withstand external pressure and are easily recyclable. The global expansion of e-commerce businesses is expected to continue fueling the growth of the market.
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The corrugated packaging segment accounted for USD 12.86 billion in 2018 and showed a gradual increase during the forecast period.
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.
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The market in APAC is experiencing significant growth, driven by the increasing trend of online spending and the expansion of internet enterprises in the region. The convenience of door-to-door delivery services and the global expansion of e-commerce businesses are key factors fueling the demand for efficient and sustainable packaging solutions. In response, packaging ecosystem players are investing in recycling facilities and developing recyclable and biodegradable products to reduce plastic waste and meet the evolving needs of the market The rapid growth of e-commerce in developing economies, such as China and India, is expected to make them major revenue contributors to the APAC the market. The focus on sustainability and the need for eco-friendly packaging solutions will continue to be a significant trend in the market in APAC.
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.
The growth of the e-commerce sector is the key driver of the market. The e-commerce industry is experiencing significant growth in several countries, including the US, China, India, and the UK, among others. Factors such as the expanding tech-savvy population, increasing internet penetration, and the widespread use of smartphones are driving this growth. Cross-border shopping is also gaining popularity, fueling the demand for high-quality packaging solutions in plastic, corrugated board, paper and paperboard, and woods.
Furthermore, consumers, particularly those using smartphones, are increasingly opting for e-commerce due to the convenience it offers and the ability to access multiple user reviews before making informed purchasing decisions. The availability of various payment options, such as credit and debit cards, internet banking, electronic wallets, and cash-on-delivery, has further facilitated this shift. Environment-friendly packaging, including non-biodegradable plastic alternatives, is also becoming increasingly important as consumers become more conscious of their carbon footprint.
The growing popularity of smart packaging is the upcoming trend in the market. The market is witnessing significant growth due to the rise in internet penetration and the increasing trend of cross-border shopping. Smart packaging, which incorporates sensor technology into packaging systems, is gaining popularity in this industry. This technology enables monitoring of product freshness, display of quality information, and enhancement of product and customer safety. Various industries, including food, pharmaceuticals, electronics, apparels and accessories, are adopting smart packaging for these benefits.
Furthermore, a range of paper-based packaging products with advanced features and functionality. The demand for high-quality, environment-friendly packaging is also driving the market, with consumers, particularly smartphone users, preferring eco-friendly options. Non-biodegradable plastic remains a concern, and the shift towards sustainable packaging materials like plastic, corrugated board, paper and paperboard, and woods is expected to continue.
The complex supply chain in the e-commerce sector is a key challenge affecting market growth. E-commerce sales have resulted in unique packaging and supply chain challenges due to the increased touchpoints involved in the delivery process. These touchpoints include storage and warehouses, fulfillment centers, transport providers, and sorting centers. To ensure the safe and high-quality delivery of e-commerce products, packaging plays a crucial role. Plastic, corrugated board, paper and paperboard, and woods are commonly used materials for e-commerce packaging. However, with growing consumer awareness and preference for environment-friendly options, non-biodegradable plastic is being replaced with eco-friendly alternatives. The rise of internet penetration and cross-border shopping has further complicated the packaging landscape. Performance centers and high-quality packaging are essential to attract and retain customers, especially among smartphone users who make up a significant portion of online shoppers.
Furthermore, the use of smart packaging, such as QR codes and augmented reality, can also enhance the customer experience. E-commerce retailers must ensure their packaging is strong to withstand the potentially longer supply chain and multiple modes of transport and storage. The risks involved in the distribution and fulfillment process include mishandling, inappropriate temperature conditions, improper space allocation, and the threat of being dropped and damaged. Thus, e-commerce packaging must be designed to mitigate these risks and protect the products during transit.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
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 market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
The market is experiencing significant growth due to the increasing popularity of online shopping and the need for high-quality packaging to protect various product categories during transit. The market is segmented into corrugated boxes, plastic mailers, tapes, and other types of packaging solutions. Corrugated boards, plastics, paper and paperboard, and woods are the primary materials used in e-commerce packaging. The market caters to various end-user verticals such as consumer electronics, apparel and accessories, personal care, household, food and beverages, pet food, pharmaceuticals, and fast fashion. Customization and innovation are key trends in the market, with consumers demanding eco-friendly and sustainable packaging solutions.
Furthermore, the rise of smartphone users and internet penetration has led to an increase in cross-border shopping, resulting in the need for global expansion and door-to-door delivery services. The convenience of at-home delivery and the influence of celebrities and social media have also contributed to the growth of the market. The market is witnessing the development of innovative approaches to packaging, including frustration-free packaging, primary and secondary packaging, and recyclable and biodegradable products. The market is also addressing the issue of plastic waste by promoting the use of recycling facilities and non-biodegradable plastic alternatives. The changeover period for e-commerce packaging is expected to be short, with the market adapting to new product innovations and consumer demands quickly. Aftersales support and security are also crucial factors in the market, with communication and entertainment industries relying on reliable and efficient packaging solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 27.11% |
Market growth 2024-2028 |
USD 93.52 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
20.53 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, UK, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amcor Plc, BillerudKorsnas AB, 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. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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