The E-Commerce Packaging Market is estimated to be valued at US$ 29.66 Bn or Billion in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The E-Commerce packaging market involves the usage of various packaging formats including boxes, envelopes, bags, labels to wrap and ship products ordered online. Packaging is critical in this market as it plays a major role in product protection, visibility, and branding during storage and transit. The various advantages of e-commerce packaging includes safeguarding products from external damage, easy accessibility to shipping labels and barcodes, and ensuring consumer satisfaction.
Market key trends:
The growing adoption of e-commerce is one of the major trends fueling the demand for specialized e-commerce packaging solutions. According to the U.S. Department of Commerce, the online retail spending in the U.S. rose from 16% in 2020 to 18% in 2021 of total retail sales. As e-commerce continues to grow globally, the need for strong, secure, and sustainable packaging solutions to meet various delivery and supply chain requirements is also rising. Package designs are evolving to offer better graphics, easier opening, and flexible formats for varying product types. Furthermore, packaging manufacturers are focusing on developing recyclable and paper-based packaging to meet sustainability goals of e-tailers and regulations, which is another key trend driving market growth.
Threat of new entrants: The high costs associated with entering the e-commerce packaging market acts as a deterrent for new entrants. Bargaining power of buyers: Buyers have moderate bargaining power given the presence of substitutes and differentiated products offered by established players. Bargaining power of suppliers: Suppliers have moderate power given wide availability of raw materials and less brand loyalty towards any particular supplier. Threat of new substitutes: Substitutes like reusable packaging pose a threat. Competitive rivalry: Intense competition exists between established players.
Strength: E-commerce growth drives demand for sustainable and innovative packaging solutions. Weakness: Volatility in raw material prices increases production costs. Opportunity: Expanding into emerging markets with rising e-commerce adoption presents new opportunities. Threats: Stricter environmental regulations increase compliance costs.
The E-Commerce Packaging Market Size is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing online shopping trends. North America dominates the market currently due to high e-commerce penetration and presence of packaging giants. Asia Pacific is expected to grow at the fastest pace with China, India, and other developing countries experiencing growth in their online retail industries.
Key players operating in the e-commerce packaging market are Amcor plc, Mondi Group, International Paper Company, Smurfit Kappa, DS Smith, Klabin S.A., Georgia-Pacific LLC, Rengo Co., Ltd., Orora Packaging Australia Pty Ltd, and Nippon Paper Industries Co., Ltd. These players are focusing on developing sustainable and innovative packaging solutions to cater to the dynamic needs of the e-commerce industry.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it