December 14, 2024
E-Commerce Packaging Market

E-Commerce Driving Growth in Online Shopping is driving the E-Commerce Packaging Market

E-commerce packaging products are increasingly being used for safe packaging of ordered goods. They provide protective bubble wraps, paper fills, boxes in varied sizes as per product dimensions, adhesive tapes for sealing and ensuring safety during shipping and transportation. E-commerce platforms offering goods across categories from apparels to electronics expect their ordered items to reach the customers safely without any damage. This drives the need for sustainable yet effective packaging solutions.

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, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends witnessed in the e-commerce packaging market is the increasing demand for sustainable packaging materials. Plastics contributed majorly to environmental pollution, compelling both manufacturers and consumers to look for eco-friendly alternatives. Biodegradable materials like paper, pulp etc. are gaining preference. Recycled content has also become an important criteria in material selection to reduce waste generation. Brands are investing in R&D to develop innovative yet sustainable designs using minimum resources and materials. Educating customers about responsible consumption and disposal is another initiative to encourage sustainability.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the E-Commerce Packaging Market is moderate as the market is highly fragmented with the presence of both global and regional players. However, high initial investment costs and stringent government regulations act as barriers for new players.

Bargaining power of buyers: The bargaining power of buyers in the E-Commerce Packaging Market is high. Buyers can easily switch between vendors as products are standardized with no brand loyalty. This gives buyers a higher negotiating power.

Bargaining power of suppliers: The bargaining power of suppliers in the E-Commerce Packaging Market is low to moderate. The market has a large number of raw material suppliers with low switching costs. However, vendors can choose premium suppliers with niche raw materials.

Threat of new substitutes: The threat of new substitutes in the E-Commerce Packaging Market is low. There aren’t many viable alternatives to packaging goods for e-commerce deliveries. Sustainable packaging preferences may spur innovations.

Competitive rivalry: Competition in the E-Commerce Packaging Market is high owing to the presence of numerous global and regional players. Players compete on innovation, material sourcing, and sustainable packaging initiatives.

Key Takeaways

The Global E-Commerce Packaging Market Size is expected to witness high growth. Strong growth in the e-commerce sector worldwide is expected to fuel market growth during the forecast period. Technological advancements in digital ordering and logistics are also supporting market expansion. 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: The Asia Pacific region currently dominates the global E-Commerce Packaging market and is expected to continue its lead over the forecast period. This can be attributed to the rapidly growing e-commerce markets in countries such as China and India. In addition, favorable government policies promoting e-commerce are boosting regional market growth.

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. Players are focused on sustainability initiatives and innovations to develop new packaging solutions catering to evolving Industry 4.0 trends.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it 
Ravina
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Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

Ravina Pandya

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

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