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Retail E-Commerce Packaging Market Booming With Technology Advancements and Rising CAGR: DS Smith plc, Klabin S.A., Rengo Co. Ltd., Nippon Paper Industries Co. Ltd., and Georgia-Pacific LLC

07-20-2021 11:26 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Worldwide Market Reports

Retail E-Commerce Packaging Market

Retail E-Commerce Packaging Market

Sustainable e-commerce packaging is gaining major traction in the recent past. Chinese e-commerce players such as JD.com and Suning.com are adopting reusable plastic boxes, which are cost-effective and generates low waste. JD.com also announced that it aims to raise the proportion of sustainable materials to 80% of its total packaging material used by 2020, due to high waste generation from packaging. According to Chinese government sources, on Singles Day 2017, a popular Chinese holiday, over 160,000 tons of waste was generated as e-commerce players recorded sales of US$ 52 billion.

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Regional Analysis of E-commerce Packaging Market to 2027:

In terms of revenue, Asia Pacific held a dominant position in the market in 2019 and is expected to maintain its dominance throughout the forecast period. According to the Associated Chambers of Commerce and Industry in India (ASSOCHAM), an industry trade association, the e-commerce market accounted for US$ 48.5 billion in 2019 and is projected to exceed US$ 70 billion by 2027. This can be attributed to an increasing internet penetration rate in India. According to the Internet and Mobile Association of India (IAMAI), the number of people with access to the internet in India is projected to reach 700 million by June 2019. The aforementioned factors coupled with strong GDP growth and increasing purchasing power of consumers will result in India being the fastest-growing market for e-commerce in the world, which in turn is expected to boost the growth of the e-commerce packaging market in the region. Amazon India, Flipkart, and Snapdeal are among the major e-commerce players operating in India. The e-commerce packaging demand in India will largely be dictated by the performance of these companies in the market.

Europe and North America region have high internet and smartphone penetration. According to the World Bank, the average rate of internet penetration in Europe and North America is 75% and 78% respectively. The market in these regions is driven by shifting consumer preferences from offline retail channels to e-commerce. Amazon Inc. is the largest e-commerce player in North America. The company recorded a revenue of US$ 149 billion in 2016 in the U.S. alone and accounted for over 38% of the e-commerce market in the U.S. According to the Fibre Box Association (U.S.), the boxes segment is expected to witness significant demand from the e-commerce industry. This is largely due to increased demand for products such as furnishings, electronics, and consumer goods which typically utilize boxes as packaging.

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The global e-commerce packaging market is marked by intense competition from major manufacturers operating in this market. Strategic mergers and acquisitions, product innovations, and joint ventures are some of the key strategies adopted by these companies to ensure long-term sustenance in the market. Some of the major players operating in the market are Smurfit Kappa Group, Mondi Group plc, International Paper Company, DS Smith plc, Klabin S.A., Rengo Co. Ltd., Nippon Paper Industries Co. Ltd., and Georgia-Pacific LLC.

Among product types, protective packaging accounted for 33.23% of the market share and was valued at US$ 7.12 billion in 2017. It is expected to be the largest and the fastest-growing segment throughout the forecast period. The segment’s dominance can be attributed to increasing electronics and food & beverages sales from online platforms.

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About WMR

Worldwide Market Reports is your one-stop repository of detailed and in-depth market research reports compiled by an extensive list of publishers from across the globe. We offer reports across virtually all domains and an exhaustive list of sub-domains under the sun. The in-depth market analysis by some of the most vastly experienced analysts provides our diverse range of clients from across all industries with vital decision-making insights to plan and align their market strategies in line with current market trends.

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