Japan Home Appliances - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

E-Commerce Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The E-Commerce Packaging Market size is estimated at USD 68.87 billion in 2024, and is expected to reach USD 131.61 billion by 2029, growing at a CAGR of 13.83% during the forecast period (2024-2029).

The growth in the use of the Internet and smartphones, as well as an economy that is growing very quickly, are all pointing to increased spending on the Internet. However, a major growth inhibiting factor for this sector is expected to be the lack of firsthand product experience before purchase and the limited penetration of online businesses in remote parts of the world. In addition, the Russian-Ukraine war has had a negative impact on the overall packaging ecosystem.

For various reasons, e.g., home delivery, the convenience of shopping, and easy product search, online shopping sites have become widely adopted by consumers as their preferred option for buying goods. The rapid expansion of online businesses around the world has significantly boosted the demand for solid packaging solutions.

An enormous opportunity for online shopping and packaging providers to penetrate untapped markets and gain market share in this process has emerged because of increasing internet penetration worldwide and increased Internet access by the majority of people in emerging economies around the world.

Recognizing the growing waste of plastics, companies seek to minimize it and offer a complete range of 100% recycled or biodegradable products.

Additives used in producing some virgin plastics that complicate recycling or pose risks to human and environmental health are increasingly under scrutiny. Uncertainty regarding such additives in plastic waste may ultimately prevent recycling for producers of recycled plastics.

The market increased during the COVID-19 pandemic. Most countries, notably China, the United States, and Germany, established restrictions on the movement of people and goods. However, due to customer demand for necessary commodities such as food, pharmaceuticals, veggies, and other things, the e-commerce industry was exempted from these laws. E-commerce platforms are vital in preventing the spread of viruses by limiting people's movement and providing door-to-door delivery services.

Ecommerce Packaging Market Trends

Consumer Electronics Segment to Witness Significant Growth

Manufacturers and exporters of consumer electronics packaging products are increasingly adopting protective packaging such as air bubble wraps, air pillows, and other inflatable packaging products that protect consumer electronics. In the future, these packaging options will be suited to all electronic segments' needs; for instance, according to the Department of Commerce (India), consumer electronics worth USD 11.012 billion were exported by the country.

E-commerce has gained consumers' trust in quality deliverables and aftersales support, encouraging them to place multiple orders online. In the case of handling and logistics, packaging solutions provide a strong containment solution to cope with damage.

The mobile market is a refreshed category of consumer electronics with the highest penetration, and the growth of the mobile market is multiplying as technology develops. In response to this growth, e-commerce companies are collaborating with each other on the launch and distribution of their products, which is why there is increasing demand for these packaging materials in the online retail market.

Moreover, the industry's growth rate is set to be increased by opening up new market opportunities as a result of increasing product development. The growth of this market is also stimulated by several innovative product innovations that focus on designing and manufacturing processes. It is expected that profitable opportunities for manufacturers in the e-commerce packaging market will be generated by technological advances to develop effective and environmentally efficient electronic commerce packaging.

Asia-Pacific Holds a Major Share in the Market

Asia-Pacific is one of the world's fastest-developing e-commerce markets. Increased shipments of eCommerce are being driven by increasing client bases in major countries, such as India and China. Therefore, there will be a growing demand for packaging solutions in this area.

One of the emerging countries where e-commerce is rapidly growing is China, owing to consumer preference for internet shopping and increasing payment options and events such as day deals on merchandise, which are accompanied by a strong logistics infrastructure.

In India, there is a growth in the demand for e-commerce packaging because of population increases, income levels, lifestyle changes, and increased economic activity. Based on data from the Brand Equity Foundation, India's e-commerce industry is estimated to grow to USD 200 billion by 2026. Most of the growth in this sector is thanks to an increase in Internet and mobile phone use.

Fashion & apparel, consumer electronics, and personal care drive the rapid expansion of the market. Packaging options are becoming more accessible thanks to substantial investments in the consumer electronics, personal care, fashion, and textile sectors.

E-Commerce Packaging Industry Overview

The availability of several players providing e-commerce packaging solutions has rendered the market fragmented. Key players operating in the market include Amcor PLC, Mondi PLC, International Paper Company, and Smurfit Kappa Group PLC, among others.

In February 2024, Amcor announced the collaboration with Stonyfield Organic, the country's leading organic yogurt maker, and Cheer Pack to launch the first all-polyethylene (PE) spouted pouch; where the new pouch uses Amcor's AmPrima Plus, an all-PE film that is designed to meet the APR Design Guide for recyclability, and Cheer Pack North America's Vizi cap. The package removes the metalized or foil-based film layers commonly found in standard pouch structures while providing superior heat resistance for spout insertion.

In October 2023, Mondi PLC partnered with Cotesi to replace conventional plastic mulch film with a paper solution. Kraft Mulch is a paper alternative commonly used to protect plants from birds and weather impacts. It is created from responsibly sourced wood with no plastic or coating, is an industrially compostable paper solution certified according to DIN EN 13432, and provides comparable protection as plastic mulch film.

In September 2023, Sonoco Products Company completed the acquisition of the remaining portion of its equity stake in the company RTS Packaging LLC (RTS) from WestRock, a joint venture partner, and a single WestRock paper mill located in Chattanooga, Tennessee, for a total consideration of USD 330 million. This transaction brought Sonoco's network of 15 operations to the United States, Mexico, and South America.

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