The retail e-commerce packaging market revenue stood at $19,022.7 million in 2019, which is predicted to rise to $68,388.1 million by 2030. Furthermore, the market is predicted to grow at a CAGR of 12.1% between 2020 and 2030. The market is being driven by the surging population and increasing affordability of internet connections and smartphones.
The COVID-19 pandemic has positively impacted the growth of the retail e-commerce packaging industry, by making people change their shopping behavior. People all over the world increasingly preferring to buy things online over purchasing them from brick-and-mortar shops. Moreover, the decline in crude oil prices because of their low demand and high production is causing a sharp fall in the costs of various crude-oil-based raw materials, such as plastic resins. Hence, it can be safely said that the pandemic is fueling the expansion of the market across the globe.
The boxes category held the largest share in the market in 2019, under the material type segment, and it is predicted to dominate the retail e-commerce packaging market in the near future as well. This is credited to the fact that the cost of completing a product delivery on the first go is 2–3 times lower than delivering the product on the second attempt. Due to this reason, companies use packaging that can provide strength and durability and protect the contents from damage during the first delivery attempt itself. This, in turn, reduces the chances of product returns, which subsequently helps companies attain high customer retention rates.
The cosmetics and personal care category is predicted to demonstrate the fastest growth in the end user segment of the market in the forthcoming years, primarily because of the surging disposable income. People are increasingly buying these products online on account of the fact that a greater range of products is available on digital platforms in comparison to brick-and-mortar stores. Furthermore, digital platforms allow for cross-border purchases, which makes it possible for people to buy products that are not available in their country.
Geographically, the APAC region dominated the retail e-commerce packaging market in 2019 and demonstrated double-digit growth between 2014 and 2019 due to the boom in the e-commerce industry, especially in India and China. China led the APAC market till 2019 due to the presence of a highly affordable labor force and a large number of packaging producing companies in the country.
Furthermore, the surging population and growing adoption of advanced technologies are positively impacting the expansion of the market for retail e-commerce packaging in the region. Additionally, the enactment of favorable government laws regarding the e-commerce industry in regional countries, such as India, China, Australia, Japan, and South Korea, is bolstering the growth of e-commerce and associated industries in the region.
The MEA region held a small share in the market in the years gone by on account of the fact that the penetration of e-commerce companies in this region was less. This negatively affected the progress of various associated industries, such as packaging and logistics. However, the industry is predicted to demonstrate the fastest growth in this region in the forthcoming years. The advance of the retail e-commerce packaging market in this region will be because of the changing government regulations, mainly in the U.A.E. and Saudi Arabia, for reducing their economic dependence on the oil and gas industry, which is why they are focusing more on other sectors in order to diversify their economy.
Furthermore, the surging average spending per order in Gulf Cooperation Council (GCC) countries and rising international trade activities are attracting several e-commerce companies, who are rapidly setting up their plants and warehouses in the region for getting the first-mover advantage.
Companies operating in the market for retail e-commerce packaging are making huge investments in manufacturing facilities for increasing their production efficiency and reducing the amount of the waste generated by corrugated sheets, by using them again as a raw material for the production of packaging materials. Moreover, with the increase in the government pressure on the industry for reducing pollution, manufacturers are looking for better alternatives to conventional packaging material production processes. Leading market players, such as Westrock Company, Mondi Plc, DS Smith Plc, and International Paper Company, are increasingly focusing on producing products that are recyclable, compostable, and reusable.
The surging population is one of the major factors propelling the expansion of the retail e-commerce packaging market. As per the United Nations Department of Economic and Social Affairs (UNDESA), the global population is predicted to grow from 7.6 billion in 2019 to 8.6 billion, 9.8 billion, and 11.2 billion by 2030, 2050, and 2100, respectively, with the addition of nearly 83 million people every year. Due to this, the demand for various consumable and non-consumable products that are extensively sold through online channels will shoot up.
Furthermore, the changing customer buying behavior, i.e., the increasing preference for online channels over retail stores, and the growing usage of the latest technologies by the millennials are boosting the expansion of the e-commerce industry, which is, in turn, driving the advance of the market.
With the rapid technological advancements, internet connections and smartphones are becoming cheaper with each passing year, and this is another major factor driving the expansion of the retail e-commerce packaging market. Moreover, the growing competition in the telecommunications industry is increasing the affordability of smartphones and internet connections, which is, in turn, boosting the advance of various digital industries, such as e-commerce. This is, in turn, propelling the requirement for packaging products, which is, consequently fueling the progress of industry players.
Additionally, the COVID-19 pandemic is propelling c the retail e-commerce packaging market growth by driving digitization and the usage of smartphones and the internet. As per the World Trade Organization, the imposition of lockdowns and social distancing norms in order to control the spread of the infection has massively fueled the popularity of online shopping, social media platforms, film and video streaming services, and internet telephony and teleconferencing. This has, in turn, positively impacted the business-to-consumer (B2C) sales of household essentials, food products, and medical supplies, thereby causing a massive rise in the requirement for retail e-commerce packaging products.
| Report Attribute | Details |
|---|---|
| Historical Years | 2014-2019 |
| Forecast Years | 2020-2030 |
| Base Year (2019) Market Size | $19,022.7 million |
| Forecast Period (2020-2030) CAGR | 12.1% |
| Report Coverage | Market Dynamics, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Regulatory Policy Analysis, Companies’ Strategic Developments, Competitive Benchmarking, Company Profiling, Regulatory Landscaping |
| Market Size by Segments | Material Type, End-User, Geography |
| Market Size of Geographies | U.S., Canada, Germany, U.K., France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, GCC, South Africa |
| Secondary Sources and References (Partial List) | Asian Development Bank, Consulate General of India (New York, U.S.), Department of Industrial Policy and Promotion (India), E-Commerce Association of India, E-Commerce Europe, E-Commerce Foundation, European Association, India Brand Equity Foundation, International Trade Association, National Association of Software and Service Companies, Privacy Shield Framework, U.S. Department of Commerce, United Nations Economic and Social Commission for Asia and the Pacific, United Nations Industrial Development Organization |
The retail e-commerce packaging industry is fragmented in nature, due to the presence of a larger number of small players. However, leading players, such as International Paper Company, Westrock Company, DS Smith Plc, Mondi Plc, Smurfit Kappa Group Plc, Klabin S.A., and Stora Enso Oyj, are driving consolidation in the corrugated packaging space.
In recent years, a spurt in acquisitions has been witnessed in the corrugated packaging space. For instance:
The retail e-commerce packaging market offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Material Type
Based on End User
Geographical Analysis
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