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The retail e-commerce packaging market generated $19,022.7 million in 2019, and it is expected to touch a market size of $68,388.1 million by 2030, growing at a CAGR of 12.1% during the forecast period (2020–2030). The high growth rate of the industry is due to the increasing population across the globe and rising affordability of smartphones and internet connections.
The retail e-commerce packaging industry is one of the few sectors on which COVID-19 has had a positive impact. People have changed their shopping behavior; instead of visiting traditional brick-and-mortar shops, they now prefer to shop online. Moreover, the decrease in the crude oil price, due to the high production and lower demand, owing to supply chain disruptions, may also decrease the price of crude-oil-based raw materials, such as plastic resins. Owing to such factors, it is expected that COVID-19 will have a positive impact on the retail e-commerce packaging industry.
Based on material type, the boxes category accounted for the largest size in the retail e-commerce packaging industry in 2019, and it is expected to retain its position during the forecast period. This is due to the fact that delivering a product on a first go costs 2-3 times less compared to delivering it for the second time. So, companies look for packaging which can protect the contents from any kind of damage the first time itself, by providing high strength and durability. This also reduces the return ratio and further maintains the consumer retention rate.
The retail e-commerce packaging market, based on end user is categorized into consumer and electronics, fashion and apparel, cosmetics and personal care, food and beverages, furniture and home furnishing, and others Among all, cosmetics and personal care category is projected to showcase the highest CAGR during the forecast period, on account of the increasing disposable income across the globe. People prefer to buy such products online, as digital platforms offer a large number of products, from which a consumer can select, as per requirement, which, often, is not possible at brick-and-mortar stores.
Further, digital platforms enable cross-border purchase, as, sometimes, many luxury products are not available in a particular country. Owing to such factors, the cosmetics and personal care industry is expected to demonstrate the fastest growth in the retail e-commerce packaging market.
Among all regions, APAC held the largest share in the retail e-commerce packaging market in 2019. The market in the region showcased a double-digit growth during the historical period (2014–2019), due to the burgeoning e-commerce industry, mainly in China and India. China held a dominant share in the region, owing to a large number of packaging manufacturers and low labor costs.
Further, the booming population and increasing adoption of the latest technologies in the region are also impacting the retail e-commerce packaging market in a positive way. In addition, favorable government policies pertaining to the e-commerce industry, in countries such as China, India, Japan, South Korea, and Australia, are also aiding in the growth of the e-commerce and associated industries.
The MEA region accounted for quite a small share in the overall retail e-commerce packaging market in the past, due to the fact that it has been highly untapped by e-commerce companies, which directly or indirectly impacts the associated industries, such as retail e-commerce packaging and logistics. However, in the future, the region would demonstrate the highest growth rate, on account of the changing government policies, mainly in Saudi Arabia and the U.A.E., in order to reduce the reliance on the oil and gas industry and focus on other sectors to diversify their sources of income.
Moreover, the increasing international trade and higher average spending per order in Gulf Cooperation Council (GCC) countries are also attracting e-commerce companies to capture the market, in order to get the first-mover advantage.
Nowadays, companies associated with retail e-commerce packaging industry are investing in manufacturing facilities, in order to increase their production efficiency and simultaneously reduce the amount of waste, such as those generated by corrugated sheets, by utilizing it again, as a raw material for the manufacturing of packaging materials. Moreover, the government pressure on the industry, to reduce pollution, is impelling manufacturers to look for better alternatives for the production of packaging materials. The bigger players in the retail e-commerce packaging market, such as DS Smith Plc, Westrock Company, International Paper Company, and Mondi Plc, are complying and manufacturing products that are reusable, recyclable, or compostable.
According to the United Nations Department of Economic and Social Affairs (UN DESA), the global population is rising at a high pace, and it is expected to reach 8.6 billion in 2030, 9.8 billion in 2050, and 11.2 billion in 2100, from 7.6 billion in 2019, with roughly 83 million people being added every year. This rapid growth will impact the retail e-commerce packaging market in a positive way, as this will increase the demand for both consumable and non-consumable products, which are widely being sold through online channels.
Further, the changing consumer purchasing behavior, i.e. the shift from retail stores to online channels, and increasing adoption of the latest technologies by millennials across the globe are resulting in the significant growth of the e-commerce industry, which, in turn, is driving the retail e-commerce packaging industry.
|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|
Technology is changing rapidly; nowadays, most people can afford a smartphone with an internet connection, which was not possible till a few years ago, due to the high cost of mobile phones and internet connections. But due to technological advancements and increasing competition in the telecommunications industry, the number of mobile phone and internet users rose significantly across the globe. This boosts the growth of digital industries, such as e-commerce, which, in turn, propels the demand for packaging products, which result into high growth of retail e-commerce packaging industry.
In addition, COVID-19 is also aiding the retail e-commerce packaging market growth. According to the World Trade Organization, the enforcement of social distancing, lockdowns, and other measures, in response to the COVID-19 pandemic, has led consumers to ramp up online shopping activities, social media usage, internet telephony and teleconferencing usage, and video and film streaming. This has resulted in a spike in the business-to-consumer (B2C) sales of medical supplies, household essentials, and food products, which, as a result, is increasing the demand for retail e-commerce packaging products.
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