E-Commerce Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

E-Commerce Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The e-commerce packaging market was valued at USD 27.04 billion in 2020 and is expected to reach USD 61.55 billion by 2026, at a CAGR of 14.59% over the forecast period 2021 - 2026. E-commerce has emerged as a prominent choice for purchasing goods since the turn of the century, demanding robust packaging solutions to sustain handling and long logistics for the varied product dimensions. Each increase in the varieties of product presence online is making the demand for its packaging solution.

• The market for e-commerce goods has evolved drastically during the last decade. The global e-commerce sales grew by over 18% in the year 2018. Hence, the demand for e-commerce packaging solutions has grown consequently, and the trend is expected to continue during the forecast period.
• Rising internet penetration and growing access to the internet for a majority of the population in the developing economies across the globe have created huge potential market opportunities for the e-commerce and packaging providers to venture into untapped markets and gain substantial market share during the process.
• The awareness about the plastic wastes is growing, and companies are focusing towards minimizing it and offering products which are 100% recyclable and biodegradable.
• Manufacturing companies are adopting the Omni-channels distribution strategies for their products also includes online purchasing is also fueling the market growth for the e-commerce packaging market. However, the lack of growth in the underdeveloped countries is restricting the market from tapping into these regions due to fewer demands.

• Consumers electronics are shaping consumers lifestyle in terms of security, communications, and entertainment. Over 1.92 billion people estimated to shop online in the year 2019. Consumer electronics is the segments which have shorter changeover period. Also, the adoption of consumer electronics is reaching the new high every month; resulting in increasing number of shipments year on year.
• E-Commerce has gained the trust of consumers in terms of quality deliverables and aftersales support, which is encouraging them for multiple orders online. In response to this, packaging solution providers are offering robust packaging solutions to sustain damages during handling and logistics.
• The mobile market is the refreshed category of consumer electronics which have the highest penetration, and with continuous development by the technologies, the mobile market growth is multiplying. Also, in response to this growth, e-commerce companies are partnering for their launches and distribution, resulting in the growing demand for the e-commerce packaging market.
• Many e-commerce companies are focusing on sustainable packaging solutions in order to reduce plastic wastes and moving towards paper-based packaging. The trend is also expected to hit the consumer electronics segment, which is sensitive to external impacts with better designing to make packaging more robust. For instance, e-commerce giant Amazon introduced Frustration-Free Packaging solution for eliminating the additional shipping boxes. By December 2017, the company has avoided 360 million shipping boxes.

• Asia-Pacific is one of the fastest growing markets for the e-commerce industry. Increasing customer base due to growing economies of the major countries like India and China is driving the growing number of e-commerce shipments in the regions. Hence, it will drive the demand for more packaging solutions in the region.
• Witnessing driven by a young demographic profile, IBEF has stated that increasing internet penetration and relative better economic performance, India’s E-commerce revenue is expected to jump from USD 39 billion in 2017 to USD 120 billion in 2020, growing at an annual rate of 51 percent, the highest in the world.
• Government initiatives encouraging digitalization are continually introducing people to online modes of commerce and driving the demand for e-commerce packaging solutions in the region. India continues to have a favorable FDI policy of 100% FDI, which is encouraging companies like Amazon to build a stronger base in the country.
• In April 2018, Amazon announced its plans to add five new fulfillment centers in India and retain its position as the largest warehousing space provider in the country. The Indian government is also backing Amazon's aim to reduce the use of plastic packagings for e-commerce.

The availability of several players providing e-commerce packaging solutions has intensified the competition in the market. Therefore, the market is moderately fragmented, with many companies developing expansion strategies.

• Mar 2019 - Amcor Limited acquired its rival Bemis Company, Inc. By combining these two market leaders, Amcor aims to create a stronger value proposition for shareholders, customers, employees, and the environment.
• Oct 2018 - JD.com, Inc. introduced a new reusable package initiative. Under the new program, the company's customers can have thousands of products delivered in reusable packaging for small and medium-sized parcels, making e-commerce more environmentally friendly and reducing costs.

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