Mailer Packaging Market Size, Share & Trends Analysis Report By Material (Plastic, Paper, Foil), By Product (Cushioned, Non-cushioned), By Insulation (Insulated, Non-insulated), By End-use, By Region, And Segment Forecasts, 2024 - 2030

Mailer Packaging Market Size & Trends

The global mailer packaging market size was estimated at USD 26.48 billion in 2023 and is expected to grow at a CAGR of 16.4% from 2024 to 2030. Surging adoption of mailer packaging in flourishing e-commerce industries is expected to support the market growth over the forecast period. E-commerce in the U.S. has been one of the key end-use industries driving the demand for mailer packaging. The e-commerce retails sales as a percentage of total sales is seen to be growing steadily. According to Federal Reserve Bank of St. Louis, the e-commerce retail sales percentage was 15.6% in Q4 2023 compared to Q4 2022 in which it was 14.6%. Rising e-commerce sales reflect a growing demand for this packaging in e-commerce, presenting a positive outlook for the market in the country.

Growing online purchasing trend contributes to mailer packaging waste. This has driven various state governments to develop policies to reduce the use of plastics-based air pillows, mailers, bubble wraps, and polystyrene foam packaging in online retail. In May 2022, legislation (AB 2026) was passed by the California State Assembly to restrict the use of abovementioned products in online packaging. This would drive mailer packaging manufacturers to adopt paper-based mailers or recyclable plastic-based mailers.

The U.S. manufacturing sector is diverse encompassing automotive, aerospace, electronics, pharmaceuticals, and other industries. The government has announced grants and loans to boost domestic electric vehicle production, which can result in increased demand for electric automotive aftermarket parts and automotive parts required in assembly lines. This can fuel the product demand for packing fragile automotive components.

Market Concentration & Characteristics

Prominent players operating in the mailer packaging market are Pregis LLC; 3M; Sealed Air; ProAmpac; Georgia-Pacific; Intertape Polymer Group Inc.; Crown Packaging Corp.; Mondi; WestRock Company; and Smurfit Kappa. This is a consolidated and fragmented market. Mergers & acquisitions, global expansions, and impact of regulations are the actors influencing consolidation or fragmentation in the market.

The level of impact due to regulations is seen to be on the higher side. Growing packaging waste issues on account of rising online sales are influencing governments to introduce bills that will enable the reduction of plastic packaging waste. For instance, in January 2024, New York lawmakers pushed to pass the Packaging Reduction & Recycling Act which can impact mailer packaging consumption in New York State.

Mergers & acquisitions are undertaken by market players to capitalize on the strengths of mergers. For instance, on March 8, 2024, Mondi and DS Smith unveiled an agreement hinting at a merger between two companies valued at USD 6.57 billion with an intent to create a paper and packaging joint company worth USD 12.82 billion, presenting a positive outlook for the mailer packaging industry.

Material Insights

The paper segment accounted for a revenue share of over 46.0% in 2023, emerging as a leading mailer packaging material segment. Paper is often perceived as a more environmentally friendly material compared to plastic alternatives. Many businesses, consumers, and e-commerce companies prefer paper-based mailer packaging as it is biodegradable, recyclable, and comes from renewable resources.

The plastic segment is expected to progress at a significant CAGR over the forecast period. Plastic materials offer excellent durability and resistance to tearing and puncturing. Such properties help to protect the contents of packages during transit, making plastics suitable for manufacturing various mailer packaging products.

End-use Insights

E-commerce dominated the end-use segment of the mailer packaging market in 2023. The lightweight design of mailer packaging contributes to cost savings in shipping, which is often based on weight. E-commerce businesses can benefit from reduced shipping costs while ensuring safe delivery of products. In addition, mailer packaging can be customized according to different types of products, including clothing, accessories, books, electronics, and more, which contributes to its adoption in the e-commerce industry.

The shipping & logistics end-use segment is expected to grow from 2024 to 2030. With growing shipping and logistics costs, the end-users are shifting to mailers. They are flexible compared to corrugated boxes used in shipping & logistics industry and are available in a variety of material options such as plastic, paper, and aluminum. This helps protect the packed products from weather conditions during shipping.

Product Insights

The non-cushioned mailers segment dominated the market in 2023. The high share of this segment can be attributed to the large-scale adoption of non-cushioned mailers for shipping products that do not require additional padding or protection during transit. They are commonly employed for clothing, documents, or lightweight products. Their popularity stems from their lightweight, cost-effectiveness, and versatility.

The cushioned mailer segment is expected to progress at a high CAGR over the forecast period. Cushioned mailers are compact, easy to handle, and take up less space compared to traditional packaging materials like boxes with additional padding. This can be beneficial for both manufacturers and retailers in terms of logistics and storage efficiency. Sales of consumer electronics, such as smartphones, tablets, and accessories, have been on the rise. These products often require careful handling and protection during transit, driving the demand for cushioned mailers.

Insulation Insights

The non-insulated mailer packaging segment dominated the overall market in 2023. Non-insulated mailers are often more cost-effective than their insulated counterparts. For businesses looking to minimize packaging costs while maintaining product protection, non-insulated mailers can be an economical choice which contributes to its high market share.

The insulated mailer segment is expected to witness growth over the forecast period. The pharmaceutical industry often requires temperature-controlled packaging for the shipment of medications that are sensitive to temperature variations. Insulated mailers provide a solution for maintaining the required temperature range during transit.

Regional Insights

The North America mailer packaging market has a number of manufacturers, such as ProAmpac, Mondi, American Polypak Packaging, and PAC. These players constantly develop customized mailer options for various end-use industries to strengthen their market presence, which can increase the penetration of custom packaging solutions in North America. Government programs focused on increasing the labeling and traceability of packaging circulating in the region are driving end-use players to adopt flexible packaging solutions presenting a positive market outlook for the market.

U.S. Mailer Packaging Market Trends

The mailer packaging market in the U.S. has a growing adoption of sustainable options. Policies developed by State Governments to limit the use of plastics in packaging and promote sustainable materials are leading end-users to shift from plastic mailers to paper-based mailers. For instance, in July 2023, Amazon Inc. announced its shift from plastic padded mailers to paper-based mailers.

The Canada mailer packaging market is expected to progress at a significant CAGR over the forecast period. According to the International Trade Administration, e-commerce infrastructure in Canada is highly advanced and closely integrated with the U.S. Broadband internet connectivity is provided using technology similar to that of the U.S. In addition, the adoption of digital wallets is steadily increasing; according to the International Trade Administration, digital wallets are expected to account for 27% of online payments by 2025. These developments indicate an overall positive scope for the Canadian e-commerce market which can fuel the demand for mailer packaging. 

Asia Pacific Mailer Packaging Market Trends

The mailer packaging market in Asia Pacific dominated the global market, accounting for the largest revenue share of 40.0% in 2023. The surge in e-commerce activities in Asia Pacific has led to an increased demand for mailer packaging. With a large population and growing middle class, there is a substantial market for online retail.

The China mailer packaging market is expected to grow as it is a global manufacturing hub, producing a wide range of goods for domestic consumption and export. The manufacturing sector's demand for efficient and cost-effective packaging, including mailer packaging, remains significant. Chinese logistics companies in recent years have expanded their presence overseas alongside its cross-border e-commerce platforms. In November 2023, Alibaba Group’s global parcel tracking platform, Cainiao Global introduced the Global 5-Day Delivery express service for the Double 11 shopping festival which allows products to be shipped from China to customers in other countries in 5 days. Such new developments in logistics delivery services can positively influence the market.

The mailer packaging market in India is experiencing significant growth owing to the flourishing e-commerce sector and changing consumer preferences toward efficient and secure packaging solutions in the country. With an increase in online shopping, there is a surging demand for efficient and secure mailer packaging solutions to facilitate the transportation of goods. In January 2022, India witnessed a surge in the use of innovative materials and designs for developing packaging solutions to ensure the safety of packed products during transit while optimizing packaging size and weight to minimize environmental impact.

Europe Mailer Packaging Market Trends

The mailer packaging market in Europe held a significant revenue share in 2023 owing to flexible packaging developments. Flexible Packaging Europe (FPE) is an association dedicated to developing the packaging market. It represents more than 85 small, and medium-sized companies, and multinational manufacturers accounting for 90% of the sales of flexible packaging solutions. The growth of digital health platforms and telemedicine services has created an ecosystem for patients to receive virtual consultations and prescriptions with the option of home delivery. Flexible packaging is used for packaging pharmaceuticals, personal care items, and medical supplies. Therefore, the growing online delivery of pharmaceuticals is expected to drive the market growth.

The mailer packaging market in Germany accounted for a considerable share of the market. According to the International Trade Administration (ITA), Germany has one of the largest e-commerce markets in Europe. The country’s internet penetration, number of e-commerce consumers, and the average amount spent on online purchasing are higher than the European region average, presenting a positive market outlook.

The Sweden mailer packaging market is expected to progress at a CAGR of 18.0% over forecast period. Sweden has a successful engineering/manufacturing sector that accounts for 75% of Sweden-based exports as per data provided by ITA. In addition, the Sweden government is encouraging manufacturing industry modernization through innovation, resource efficient production, sustainable resource production, and digitalization, which can present a positive forecast for mailer packaging used in the manufacturing of fragile products.

Central & South America Mailer Packaging Market Trends

The mailer packaging market in Central & South America is expected to progress at a significant CAGR from 2024 to 2030. Several strategic initiatives undertaken by regional mailer packaging manufacturers further contribute to the growth of the market in Central & South America. For instance, Toray Plastics (America), Inc. launched Toray Label Film in September 2022 which is specifically designed for packing pharmaceuticals and cosmetic products. Additionally, Amcor plc introduced AmFiber Performance Paper in July 2023. It is a recyclable paper-based mailer packaging with high barrier properties against atmospheric conditions.

The Brazil mailer packaging market is expected to witness growth in demand for various packaging solutions. Brazil, like many other countries, has seen a significant increase in e-commerce activities. The growth of online retail contributes to the demand for packaging solutions like mailer packaging, which is often used for shipping smaller items. The efficiency of Brazil's logistics and distribution networks plays a crucial role in determining the demand for packaging materials. Mailer packaging is valued for its lightweight nature and suitability for streamlined shipping processes.

Middle East & Africa Mailer Packaging Market Trends

The mailer packaging market in Middle East & Africa will register growth as online retail gains momentum. Businesses are increasingly investing in advanced mailer packaging options to enhance product protection and streamline shipping processes. This surge in demand has led to innovation in packaging materials and design, with an emphasis on sustainability to align with global environmental goals. Furthermore, the MEA mailer packaging market exhibits a diverse landscape shaped by unique regional factors. Countries in the Gulf Cooperation Council (GCC) are witnessing rapid growth in e-commerce, which is fueling the demand for customized and technologically advanced mailer solutions.

The GCC mailer packaging market is expected to grow as the GCC countries focus on the development of non-oil economy sectors such as automotive, renewable energy, and pharmaceutical. The automobile sector in GCC countries comprises top international automotive brands, with major international automotive manufacturers operating in the region. With the rise in electric vehicles, automotive manufacturers are seen to set up manufacturing facilities in GCC countries. For instance, in September 2023, M Glory announced its intent to set up an electric vehicle production facility in Dubai Industrial City, which can drive the demand for mailer packaging for fragile products.

Key Mailer Packaging Company Insights

The mailer packaging industry is a mix of consolidated and fragmented market types. Market players undertake various strategies including geographical expansions, new product launches, mergers & acquisitions, and joint ventures to strengthen their market presence.

Recent Developments

• In September 2023, PAC Worldwide announced the launch of a new recyclable padded mailer. The new curbside padded mailer is designed for sustainability-focused companies shipping large volumes of jewelry, cosmetics, and books.

• In June 2023, TIPA partnered with PPC Flexible Packaging and Clearview Packaging to expand its mailer packaging manufacturing capabilities and reduce shipping lengths.

Mailer Packaging Market Report Scope

Global Mailer Packaging Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each sub-segment from 2018 to 2030. For this study, Grand View Research has segmented the global mailer packaging market report based on material, product, insulation, end-use, and region:

• Material Outlook (Revenue, USD Billion, 2018 - 2030)

  • Plastic

  • Paper

  • Foil

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Cushioned Mailers

  • Non-cushioned Mailers

• Insulation Outlook (Revenue, USD Billion, 2018 - 2030)

  • Insulated

  • Non-Insulated

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • E-commerce

  • Shipping & Logistics

  • Manufacturing & Warehousing

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Belgium

    • Denmark

    • Netherlands

    • Sweden

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • GCC Countries

    • South Africa