The e-commerce packaging market consists of all packaging formats utilized for online shipping purposes. Packaging solutions, like mailing envelopes, plastic mailers, cardboard boxes, and paper wraps are commonly used for e-commerce deliveries. These products provide protective cushioning and facilitate smooth transit of fragile as well as bulky items. Further, they feature excellent printability and enable branding according to company specifications. With the rise of online retail, the demand for effective and sustainable shipping solutions is expanding tremendously.
The global e-commerce packaging market is estimated to be valued at US$ 29.66 billion in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity to fulfill the increasing demand from the online retail sector presents lucrative prospects for players in the e-commerce packaging market. As online shopping continues to gain widespread acceptance, the need for specialized transit packaging materials is escalating at a rapid pace. Statista estimates that the global e-commerce revenue will surpass US$ 7 trillion by 2025, more than doubling from 2020 levels. This growth points towards a substantially heightened requirement for appropriately designed and durable packaging units for home delivery of purchases. Manufacturers offering innovative solutions tailored for the unique needs of e-businesses stand to benefit tremendously. Developing sustainable yet high-performance packaging formats can help companies strengthen their position and meet the escalating demand from this high-potential end-use arena.
Porter's Analysis
Threat of new entrants: The threat of new entrants is low due to the high investments and networking required in the E-commerce Packaging market. Players need large warehouses, delivery fleets and tie-ups with e-commerce giants to gain foothold.
Bargaining power of buyers: Buyers have high bargaining power due to presence of multiple players providing varied packaging solutions to e-commerce companies. Buyers can negotiate on prices and demand customized solutions.
Bargaining power of suppliers: Material suppliers have moderate power given requirement of specialized packaging materials like paperboards, plastics, adhesives etc. Players source materials from few global suppliers.
Threat of new substitutes: Threat is low as no direct substitute of apt packaging currently exist to safeguard & deliver e-commerce products. Sustainable alternatives albeit at nascent stage.
Competitive rivalry: Intense competition exists amongst packaging majors. Large players fight for contracts by reducing costs and developing sustainable solutions.
SWOT Analysis
Strength: Strong distribution networks and capabilities in sustainables make top players leaders. Customized solutions help retain customers.
Weakness: Constant technology and material upgrades required strain finances of mid-sized players. Wastage during production impacts margins.
Opportunity: Growth in e-commerce across regions especially Asia Pacific and Middle East and Africa offers scope. Developing biodegradables gain traction.
Threats: Stiff competition and pricing pressures can affect margins. Environmental regulations raise compliance cost.
Key Takeaways
The Global E-Commerce Packaging Market Size is expected to witness high growth over the forecast period driven by continued expansion of the e-commerce industry worldwide. The global E-Commerce Packaging Market is estimated to be valued at US$ 29.66 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030.
Regional analysis: Asia Pacific region dominated the E-commerce Packaging market in 2023 with over 35% share attributable to rapid e-commerce uptake in countries like China, India. China and India are expected to remain the fastest growing markets during the forecast period favoured by large populations and improving digital infrastructure and logistics.
Key players: Key players operating in the E-commerce Packaging market are Amcor plc, Mondi Group, International Paper Company, Smurfit Kappa, DS Smith, Klabin S.A., Georgia-Pacific LLC, Rengo Co., Ltd., Orora Packaging Australia Pty Ltd, and Nippon Paper Industries Co., Ltd. These players are focused on developing sustainable and customized packaging solutions to cater growing e-commerce demand.
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