"The E-Commerce Packaging Market is Estimated to Witness High Growth Owing to Opportunity in Increased E-Commerce Sales"

E-commerce packaging includes protective packaging products such as boxes, envelopes, tape, bubble wrap, and labels that are used for securing and transporting products ordered online or through other non-store channels. E-commerce packaging has gained prominence as more consumers increasingly prefer shopping online and need products to be securely delivered to their homes or locations of their choice.

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 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The growth in the E-commerce packaging market is mainly attributed to the rising e-commerce sales around the world. E-commerce sales have been growing significantly over the past few years, driven by increased internet and smartphone penetration along with the convenience of online shopping. Shoppers are increasingly preferring the comfort of online shopping over visiting retail stores. This has resulted in more packages needing efficient packaging for transportation and delivery. The demand for protective and secure e-commerce packaging has surged as a result of this steady growth of the online retail market. Packaging manufacturers are catering to this demand through continuous product innovations and development of sustainable packaging solutions. This growing demand for e-commerce packaging owing to increasing e-commerce sales worldwide presents lucrative growth opportunities for manufacturers in the coming years.

Porter's Analysis
Threat of new entrants: The threat of new competitors entering the e-commerce packaging market is moderate. The market is growing with the rise in e-commerce industry which encourages new players. However, high capital requirements and established brands pose as a entry barriers.

Bargaining power of buyers: The bargaining power of buyers in the e-commerce packaging market is high. Buyers have a variety of packaging options to choose from due to presence of numerous players. This gives buyers leverage to negotiate on price and demand customized solutions.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. There are many raw material suppliers for manufacturing e-commerce packaging. However, suppliers of specialized packaging materials can influence prices.

Threat of new substitutes: Threat of substitutes is low as e-commerce packaging serves unique purpose of protecting goods during shipping and attracting customers online.

Competitive rivalry: The competitive rivalry in the market is high due to presence of numerous international and regional players competing on factors like pricing, innovation, and sustainability.

SWOT Analysis

Strength: E-commerce is growing globally with rising internet penetration which is driving demand for customized packaging solutions. Manufacturers offer sustainable and eco-friendly packaging materials.

Weakness: Volatility in raw material prices can squeeze margins for manufacturers. Packaging waste is an issue that needs to be addressed.

Opportunity: Growth of niche segments like protective packaging, specialized corrugated boxes presents scope for innovations. Developing regions will boost future prospects.

Threats: Stiff competition and pricing pressures from local players. Stringent regulations around plastic packaging usage poses challenges.

Key Takeaways

The global e-commerce packaging market size was valued at US$ 29.66 Bn in 2023 and is expected to witness high growth. 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 2023-2030.

Regional analysis: Asia Pacific dominates the global market with China being the largest market. Rapid expansion of e-commerce sector and rising disposable incomes are driving sales. North America and Europe follow APAC in terms of size due to rising trend of online shopping.

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 offer comprehensive solutions and focus on sustainable offerings to cater growing needs.

Explore more trending article on this topic: