E-commerce packaging: Key market research findings
- Increasing number of manufacturing units worldwide drives market growth
- Increased inclination towards corrugated box packaging
- Key vendors—DS Smith, Dynaflex, Georgia-Pacific, International Paper, and Mondi
Technavio’s market research analysts predict the global e-commerce packaging market to grow at a CAGR of more than 5% between 2016 and 2020. The increase in the number of manufacturing units across the globe is the fundamental driving force behind growth in this market. The evolution of manufacturing sectors such as automobile production and electronic product shipments are projected to reflect positively on the global e-commerce packaging industry during the forecast period. At present, the market is dominated by APAC, which accounts for almost 33% of the overall market share. The demand for product packaging in the e-commerce sector is augmented by the development of organized retail and e-commerce in this region.
The new market research report from Technavio presents a breakdown and analysis of the e-commerce packaging segments based on the type of materials.
“There is an increasing need for sustenance and technological innovation in the e-commerce sector with respect to packaging. Better environmental awareness among consumers and increased importance of packaging are prompting vendors in the market to develop sustainable and state-of-the-art packaging products. Corrugated boxes, made from recycled materials, are considered an eco-friendly and a viable form of packaging compared to other forms, including plastics. Besides, corporations are investing more in research and development (R&D) in an attempt to innovate corrugated box packaging,” Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
In 2015, the corrugated box segment dominated the global e-commerce packaging market by occupying more than 54% of the market share. Corrugated boxes are used widely for packaging glassware, ceramics, and electronics due to their delicate and brittle nature. Cost-effectiveness, versatility, light-weight, and sturdiness of corrugated boxes are some of the factors contributing to its popularity in retail packaging, especially in the e-commerce industry.
The key vendors in the global e-commerce packaging industry include DS Smith, Dynaflex, Georgia-Pacific, International Paper, and Mondi. The market is highly fragmented due to the presence of many multinational, regional, and local suppliers. The local players are giving a tough competition to the international players by offering innovative solutions at a lower price, resulting in price wars in the market. Vendors have an enormous scope for growth owing to the rapidly changing consumer spending patterns, increase in e-commerce parcel distribution, and growth of the consumer and retail industry.
A more detailed analysis is available in the Technavio report, Global E-commerce Packaging Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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