June 13, 2024
Consumer Electronics Packaging Market
Ict

Consumer Electronics Packaging Market is projected to driven by growing middle-class population

The consumer electronics packaging market plays a vital role in protecting delicate electronic devices from damage during transport and storage. Products like smartphones, computers, televisions, cameras and other consumer electronic devices require specialized packaging made from materials like corrugated boards, flexible films, paperboards, plastics, and more to prevent breakage of components. These packaging solutions provide cushioning, insulation, moisture and dust protection to keep devices in perfect working condition until they reach the hands of consumers.

The global consumer electronics packaging market is estimated to be valued at US$ 22.63 Bn in 2024 and is expected to exhibit a CAGR of 17% over the forecast period from 2024 to 2031.

Packaging accounts for a major portion of the total cost of electronics, however, it helps eliminate damage claims and return freight expenses. Recent trends like rise of e-commerce and direct-to-consumer shipping have augmented the need for customized packaging formats that can withstand the rigors of transportation through multiple modes. Sustainable packaging using recyclable materials is also gaining prominence to appeal environmentally conscious customers.

Key Takeaways

Key players operating in the Consumer Electronics Packaging Demand are Hangzhou Xunda Packaging Co., Smurfit Kappa Group PLC, DS Smith Plc, Pregis Corporation, Dunapack Packaging Group, Sonoco Products Company, Stora Enso Oyi, WestRock Company, Mondi Group, JJX Packaging LLC, Huhtamaki Oyj, Dordan Manufacturing Company, Shenzhen Hoichow Packing Manufacturing Ltd., UFP Technologies, Inc., International Paper Company, and Sealed Air Corporation.

The growing middle-class population and rising disposable incomes in emerging nations have augmented the demand for electronics like smartphones, laptops, home appliances and more. This is expected to propel the need for effective packaging solutions that can withstand transportation hazards.

Moreover, as online shopping grows rapidly across geographies, companies are expanding their direct-to-consumer delivery networks to reach customers in remote areas, thereby boosting opportunities for customized consumer electronics packaging manufacturers.

Market Key Trends

Sustainable packaging is a key trend gaining traction in the consumer electronics packaging market. Manufacturers are focusing on reducing plastic and utilizing recycled content to develop eco-friendly packaging solutions made from renewable or recyclable materials like paper, bamboo, mushrooms etc. Innovation in packaging formats like flexible paper pouches and envelope types are also emerging as sustainable alternatives to traditional plastic and Styrofoam types. Such trends are expected to gather steam over the forecast period on the back of tightening environmental regulations as well as growing consciousness among brand owners and consumers.

Porter’s Analysis

Threat of new entrants: New companies can enter the market easily as the initial set up and infrastructure costs are relatively low. However, established players have strong brand recognition and economies of scale.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternatives and brand loyalty. However, specialized packaging requirements give vendors an edge.

Bargaining power of suppliers: Major players source materials like paper, plastic from a few large suppliers globally. However, the presence of local substitutes provides options.

Threat of new substitutes: Substitutes like reusable containers pose a minor threat. However, customer convenience and brand promotions drive demand for single-use packaging.

Competitive rivalry: Intense competition due to low product differentiation and presence of global giants. Innovation is the key differentiator.

Geographical Regions:

North America accounts for the largest share in the consumer electronics packaging market owing to high consumption and presence of major electronics brands. APAC is also one of the major regions and is projected to grow at the fastest pace due to rising incomes, urbanization, and demand from China and India.

The consumer electronics packaging market in APAC is witnessing tremendous growth due to rising incomes, urbanization, and demand from countries such as China, Japan, and India. The growing middle-class population coupled with the rising disposable income is driving demand for consumer electronics. The rapid industrialization in developing Asian economies is also propelling opportunities for the packaging industry.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it