E-commerce Packaging market - Forecasts from 2023 to 2028

The global e-commerce packaging market is projected to grow at a CAGR of 16.02% over the forecast period, increasing from US$41.856 billion in 2021 to reach a total market size of US$118.421 billion by 2028.

The increasing rate of consumers buying things online coupled with increasing penetration of the internet and smartphones in various developing countries is anticipated to be one of the major driving factors for e-commerce packaging in the projected period. Additionally, e-commerce has gained huge popularity because there are a variety of options available for one single product. Moreover, the customer support after delivery of the product and the easy return policy is also encouraging the growth of e-commerce website which in turn is growing the global e-commerce packaging industry in the projected period.

Increasing consumer preference to buy products online

With the increasing disposable income, increasing working population, hectic work schedule, and change in lifestyle people nowadays have less time to spend on going from one store to another. Additionally, the option to get their products delivered to the doorsteps without any hassle is aiding the global e-commerce packaging market to grow in the coming years. Further, the increasing boost of e-commerce companies can be experienced in developing countries such as India, as these were untapped markets in the past but are gaining popularity in the global e-commerce packaging market in the coming years. Hence, major reasons are anticipated to grow the global e-commerce packaging industry in the projected period. As per the estimates by the U.S. Department of Commerce, the revenue from e-commerce is increasing in 2023. According to the data online retail sales contribute around 16% of the total purchase in the US retail industry. In the projected period, this is expected to increase due to factors like increasing refunds and discounts from the e-commerce providers coupled with increasing digitalization in countries such as the United States and increasing penetration of technological advancements in the country are anticipated to aid the global e-commerce packaging industry in the projected period.

In India, it is projected that the e-commerce packaging market will grow steadily.

The e-commerce packaging market is growing owing to the increased demand for corrugated boxes in developing nations like India. The expansion of online retail sectors is anticipated to propel the need for reliable packaging solutions in the upcoming years. However, the rapid growth of the e-commerce industry is mainly driven by investment in sectors like consumer electronics, apparel, fashion, and personal care industries among others, expanding the scope for packaging opportunities.

Furthermore, the growth of omnichannel models of business including prominent retailers such as Infiniti Retail Limited Croma are expected to register higher sales impacting the e-commerce packaging market growth in a positive manner. According to an estimate from the TRAI, the total number of internet subscribers in the country increased to 865.90 million in December 2022 from 850.95 million in September 2022. This highlights that the penetration of the internet will accelerate the growth of the e-commerce industry further, thereby driving the demand for e-commerce packaging solutions in the country.

Market Key Developments

• In September 2023,SIG Group, a globally popular packaging solution provider announced its plans for a Rs 900 Crore Carton Plant in India. The plant will operate at a manufacturing capacity of 4 billion carton packs annually.
• In May 2022,Smurfit Kappa acquired Atlas Packaging, the company is based in North Devon and is an independent corrugated packaging provider. This collaboration aims at providing shelf-ready packaging, and gifting boxes for the e-commerce sector and is expected to offer a broad range of innovative products in the coming years.

Segmentation:

By Packaging Type

• Corrugated Boxes
• Courier Bags
• Security Envelops
• Protective Packaging

By Industry Vertical

• Consumer Electronics
• Food and Beverages
• Cosmetics and Personal Care
• Pharmaceutical
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others