E-commerce Packaging Market
                     E-commerce Packaging Market Research Report 2018-2026 Top Brands Review,
Regional Growth Overview
Global E-commerce Packaging Market - Insights
The e-commerce packaging market is bolstered by increasing e-commerce sales around the world.
E-commerce has transformed retail sector and it is gaining significant market share in place of
conventional retail channels such as hypermarkets, supermarkets, and convenience stores. The
primary function of e-commerce packaging is to protect products from environmental damage and
contamination  such  as  dust,  moisture,  and  microbes.  Moreover,  protection  from  damage  is
important for products such as electronics and furniture. E-commerce packaging is also important
in terms of branding and customer retention. The use of sustainable and/or aesthetically appealing
packaging material led to increased resale of products, according to a Stora Enso Oyj survey.
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Sustainable  e-commerce  packaging  is  gaining  major  traction  since  recent  past.  Chinese  e-
commerce players such as JD.com and Suning.com are adopting reusable plastic boxes, which is
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.
In terms of revenue, Asia Pacific held a dominant position in the market in 2016, and is expected
to maintain its dominance throughout the forecast period. According to Associated Chambers of
Commerce and Industry in India (ASSOCHAM), an industry trade association, the e-commerce
market accounted for US$ 38.5 billion in 2017 and is projected to exceed US$ 50 billion by 2025.
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 internet in
India is projected to reach 500 million by June 2018. 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 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, 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 preference 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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Among product type, 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.
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.
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