E-commerce Packaging Market Size, Share & Trends Analysis Report By Product (Poly Bags, Mailers), By Material (Plastics, Corrugated Boards), By Application (Household, Pet Food), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global e-commerce packaging market size was valued at USD 57.9 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 16.9% from 2022 to 2030. The factors attributed to the industry growth are increasing penetration of the internet and smartphones, rapid economic growth, and increasing online spending. However, the lack of personal experience with the products before purchase and low penetration of online businesses in rural parts of the world are likely to be major restraints for the industry's growth. The U.S. is the second largest e-commerce market after China. The country is likely to have steady and significant growth during the forecast years. Some of the factors driving the growth of this industry include the increasing dependency of customers on online shopping, the high purchasing capability of the population, and the rising penetration of the internet and smartphones in the country. The e-commerce food segment is an emerging segment in the U.S. In 2019, approximately 37% of Americans shopped for food online, an increase of 14% from the previous year. The segment has gotten a steep boost due to the COVID-19 pandemic.

According to the survey of N.C.-based Ingmar, 78.7% of subjects reported shopping online for groceries after the COVID-19 outbreak due to convenience. Which was an increase of 39% from before the pandemic. In recent years, the emergence of a trend of ordering food online has helped major industry participants, such as Amazon Go and Instacart, to strengthen their footprint in the market. The growth of online businesses has been rapid in the U.S. with the increasing population and number of online shoppers. Thus, the increasing market of e-commerce is expected to augment the demand for e-commerce packaging in the U.S.

Material Insights

On the basis of materials, the industry has been categorized into plastics, corrugated boards, paper & paper boards, and wood. The plastics segment accounted for the maximum share of more than 36.00% of the overall revenue in 2021. This was owing to the high dependency of the e-commerce industry on plastic packaging. This material is low-priced, lightweight, widely available, and highly reliable compared to paper, corrugated board, and wood materials. Furthermore, the demand for plastics is spurred by the increased sales of grocery products with an instant doorstep delivery strategy.

The primary driver of online grocery shopping was the COVID-19 pandemic coupled with the comfort and unique features offered by these channels, such as product comparison, assortment, and customization. Now, the percentage shares of grocery shoppers are more compared to the pre-pandemic level. Thus, increasing reliance on e-commerce channels for grocery shopping is driving the demand for plastic packaging products. However, increasing awareness among consumers about the environmental impact of plastics is expected to act as a major restraint for the growth of this segment.

Product Insights

On the basis of products, the industry has been categorized into corrugated boxes, poly bags, tapes, protective packaging, mailer, and others. The corrugated boxes product segment dominated the global industry in 2021 and accounted for the maximum share of more than 32.00% of the overall revenue. The high share was mainly attributed to the rising demand for sustainable and lightweight and eco-friendly packaging products with high strength, such as corrugated boxes. In addition, the growing dependency of customers on the online delivery of goods is likely to augment the demand for corrugated box packaging.

However, stiff competition from flexible plastic packaging is restraining the growth of this segment in the e-commerce business. According to a survey conducted by Trivium Packaging, in 2021, almost half (54%) of respondents prefer sustainable packaging while selecting the product. The population under the age of 44 years is the prime factor driving this trend. 83% of the respondent under the age of 44 years are willing to pay more for sustainably packaged products. This factor will help support the growth of the corrugated boxes segment during the forecast period.

Application Insights

On the basis of applications, the industry has been categorized into electronics & electrical, apparel & accessories, personal care, household, food & beverages, pet food, pharmaceutical, and others. The apparels and accessories application accounted for the largest share of more than 25.0% in 2021. The high share was attributed to the increasing trend of fast fashion and high disposable income levels. The term fast fashion defines affordable and fashionable apparel. The trend of fast fashion is considerably increasing due to the rising influence of celebrities and social media. In addition, the increasing acceptance of e-commerce shopping owing to consumers’ convenience to purchase items from the comfort of their homes is boosting product sales through online channels.

The increasing penetration rate of the internet and smartphones is expected to accelerate market growth over the forecast period due to easier and more convenient shopping experiences for customers. Moreover, e-commerce channels provide price discounts, which further boosts product sales. A significant growth in the e-commerce apparels and accessories market is driving the demand for e-commerce plastic packaging. Moreover, growing investments by key players in the latest technologies and a focus on an easy-to-shop experience for consumers are the factors likely to boost industry sales. However, concerns regarding security and credit/debit card fraud may hinder growth to some extent.

Regional Insights

Asia Pacific dominated the market and accounted for over 45.1% revenue share in 2021. The region is expected to witness rapid growth over the forecast period owing to increasing mobile internet usage and changing lifestyles. Asian are shifting towards urban lifestyles engaging in a more work-oriented culture leading to the scarcity of personal time. Therefore, consumers are gradually shifting toward e-commerce platforms for shopping. Thus, the increasing dependency on e-commerce in the Asia Pacific region is accompanying the demand for shipment materials.

Further, increasing technologies such as blockchain technology, machine learning (ML), artificial intelligence (AI), the internet of things (IoT), and fifth-generation (5G) wireless systems are spreading across the region of Asia Pacific, shaping the online business environment, lowering transaction costs, improving advertisement targeting, and increasing data collection, among others. The enhancement of technologies coupled with an e-commerce platform is attributed to drive the market significantly which in turn will increase the demand for packaging material for shipment of the products.

Key Companies & Market Share Insights

The industry is highly competitive with the presence of both global and regional companies. Companies offer a wide range of plastic packaging solutions that are available in a variety of shapes, sizes, and colors. Moreover, they offer custom packaging products to suit customer-specific requirements. Key players are increasingly investing in the development of bio-based packaging products. In April 2019, Sealed Air collaborated with Kuraray America, Inc., a Japan-based specialty material manufacturer, to develop plant-based packaging for perishable foods, such as poultry, beef, and seafood, in the U.S., Canada, and Mexico.

Mondi has also been offering packaging products made from biopolymers based on renewable resources instead of PE. Many chemical companies, such as BASF SE, Braskem S.A., NatureWorks, Novamont, and Plantic, are focusing on the development of biopolymers due to the increasing sustainability approach by the e-commerce business. Some of the prominent companies operating in the global e-commerce packaging market include:

• Amcor Plc.

• Berry Global Group, Inc.

• CCL Industries

• Coveris

• Sealed Air

• Sonoco Products Company

• WINPAK Ltd.

• Alpha Packaging

• Constantia Flexibles

• Mondi

• Gerresheimer AG

• Silver Spur Corp.

• Greif

• Transcontinental Inc.

• ALPLA

E-commerce Packaging Market Report Scope

E-commerce Packaging Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global e-commerce packaging market report on the basis of product, material, application, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Corrugated Box

  • Poly Bags

  • Tapes

  • Protective Packaging

  • Mailers

  • Others

• Material Outlook (Revenue, USD Million, 2017 - 2030)

  • Plastic

  • Corrugated Board

  • Paper And Paperboard

  • Woods

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Electronics And Electrical

  • Apparels And Accessories

  • Personal Care

  • Household

  • Food And Beverages

  • Pet Food

  • Pharmaceutical

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • MEA

    • UAE

    • Saudi Arabia