Retail E-commerce Packaging Market Trends

Global Retail E-commerce Packaging Market Overview

Retail E-commerce Packaging Market Size was valued at USD 17.67 Billion in 2023. The Retail E-commerce Packaging industry is projected to grow from USD 19.94 Billion in 2024 to USD 53.66 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.17% during the forecast period (2024 - 2032). The penetration of the eCommerce industry is surging the demand for packaging. The enhanced shopping experience on the site is the major reason for packaged products. Especially, protective packaging has more significance these days. These packages can tolerate shock, vibration, and environmental factors are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Retail E-commerce Packaging Market Trends

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  Increase in online shopping to boost market growth

  
  

The increase in online shopping has been a key driver of the retail e-commerce packaging market. As more consumers shop online, there is a growing need for protective and sustainable packaging solutions that can ensure the safe and secure delivery of goods to their doorstep. Retail e-commerce packaging includes a range of products such as corrugated boxes, bubble mailers, poly mailers, padded mailers, and flexible packaging. These packaging solutions are designed to protect products during transit and also offer branding and marketing opportunities for e-commerce retailers.

The growing demand for sustainable packaging solutions, and the rising popularity of same-day and next-day delivery services as key drivers of the market. Furthermore, the COVID-19 pandemic has accelerated the growth of online shopping, as consumers increasingly turned to e-commerce to purchase goods while social distancing measures were in place. This has further boosted the demand for retail e-commerce packaging solutions. Therefore, such factors related to Retail E-commerce Packaging have enhanced the Retail E-commerce Packaging market CAGR across the globe in recent years.

In May 2022, Smurfit Kappa UK Ltd acquired Atlas Packaging, which is an integrated manufacturer of paper-based packaging materials. With headquarters situated in Barnstaple, North Devon, they are a stand-alone corrugated packaging supplier and have a significant market position in the UK, where it has good capitalization, thereby allowing them to serve a diverse customer base with added value products. Their offerings include e-commerce, gift boxes, and shelf-ready packages; these ranges are rich in interesting and revolutionary products.

Amcor Limited established the innovation center in China in August 2022. The work of this new center and its packaging technologies for the Asia Pacific and more ecological materials research benefits the entire region.

Retail E-commerce Packaging Market Segment Insights

Retail E-commerce Packaging Material Insights

The Retail E-commerce Packaging market segmentation, based on material, includes Corrugated Boxes, Protective Packaging, Security envelopes, Tapes & labels, and others. The Protective Packaging segment held the majority share in 2022 of the Retail E-commerce Packaging market revenue. Protective packaging includes materials such as bubble wrap, foam inserts, and packing peanuts, which can help to cushion and protect products during transit.

Retail E-commerce Packaging Application Insights

Based on application, the Retail E-commerce Packaging market segmentation includes Electronics & Consumer goods, Apparel & Accessories, Home furnishing, Auto Parts, Food & Beverages, Healthcare & Personal care, and others. The Electronics & Consumer goods segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2023-2030. The electronics and consumer goods segment is one of the largest end-use segments for retail e-commerce packaging, as these products are often fragile and require protective packaging solutions. Other key end-use segments include fashion and apparel, home and personal care, and food and beverage. These all factors for Retail E-commerce Packaging positively impact the market growth.

Figure 2: Retail E-commerce Packaging Market, by Application, 2022 & 2030 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Retail E-commerce Packaging Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific has indeed emerged as the largest retail e-commerce packaging market in the world, and the region's e-commerce sector is growing at a rapid pace. One of the key drivers is the large and growing population in the region, which provides a significant market for e-commerce companies. Additionally, there has been a rapid increase in internet penetration rates in the region, which has made it easier for consumers to shop online. As the e-commerce sector in the Asia Pacific region continues to grow, there will be an increasing demand for e-commerce packaging solutions that can help protect products during transit and provide a positive unboxing experience for customers. This presents an opportunity for companies in the packaging industry to innovate and develop new packaging solutions that can meet the evolving needs of e-commerce companies in the region.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil

Figure 3: RETAIL E-COMMERCE PACKAGING MARKET SHARE BY REGION 2022 (%)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s Retail E-commerce Packaging market accounts for the third-largest market share. The e-commerce sector has also been growing steadily in recent years, driven by factors such as the increasing popularity of online shopping, rising internet penetration rates, and the availability of mobile devices. As a result, the demand for e-commerce packaging solutions has also been increasing in the region. Further, the Germany Retail E-commerce Packaging market held the largest market share, and the UK Retail E-commerce Packaging market was the fastest-growing market in the European region.

North America, Retail E-commerce Packaging market, is expected to grow at the fastest CAGR from 2023 to 2030. The North American e-commerce packaging market is driven by factors such as the increasing adoption of e-commerce and m-commerce platforms, the rise in online shopping, and the growing demand for sustainable packaging solutions. Moreover, the U.S. Retail E-commerce Packaging market held the largest market share, and the Canada Retail E-commerce Packaging market was the fastest-growing market in the North American region.

Retail E-commerce Packaging Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Retail E-commerce Packaging market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Retail E-commerce Packaging industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Retail E-commerce Packaging. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Retail E-commerce Packaging industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Retail E-commerce Packaging industry to benefit customers and expand the market sector. Major Retail E-commerce Packaging market players, including International Paper Company, Nippon Paper Industries Co. Ltd., Smurfit Kappa Group, Mondi Group, DS Smith Plc., Packaging Corporation of America, Mondi, Orora Packaging Australia Pty Ltd., Klabin S.A., and Georgia-Pacific LLC, and others, are attempting to increase market demand by funding R&D initiatives.

International Paper Company is a leader in the paper and packaging industry. The company produces a wide range of packaging products, including corrugated packaging, paperboard, and containerboard. Additionally, the company is involved in the production of printing papers, pulp, and tissue products.

Nippon Paper Industries Co. Ltd is a Japanese company that produces a range of paper products, including printing and communication paper, pulp, and paperboard. The company also produces a range of functional materials, such as films, adhesives, and electronic materials. Additionally, Nippon Paper Industries is involved in the production of biomass fuel, energy, and chemicals.

Reckitt unveiled Vanish’s sleek online packing last month. This new product from the Vanish energy line by Reckitt Benckiser, called Vanish Multipower Tabs, will join Vanish Miracle in our online portfolio with bespoke web buyer-focused packing and branding knowledge. To enable minimum packing, we have developed our top product model, namely Vanish Multipower Tabs, as a compressed powder model. SIOC (Ships-in-Own-Container) model reduces packaging significantly because there is no need for an outer pack for online fulfillment.

Mondi – Global leader sustainable paper & packaging provider partnered with German equipment manufacturer Beck Pack Auto maten in May 2022 to offer a strong, flexible paper-based packaging solution for the e-commerce sector. A system made of 95% paper can be used to recycle every paper waste stream in Europe. It will help secure their intact arrival by using Functional Barrier Paper instead of superfluous plastic packaging on consignments.

List of the Key Companies in the Retail E-commerce Packaging market include

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  International Paper Company

  
  


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  Nippon Paper Industries Co. Ltd.

  
  


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  Smurfit Kappa Group

  
  


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  Mondi Group

  
  


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  DS Smith Plc

  
  


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  Packaging Corporation of America

  
  


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  Mondi

  
  


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  Orora Packaging Australia Pty Ltd.

  
  


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  Klabin S.A.

  
  


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  Georgia-Pacific LLC, among others.

  
  

Retail E-commerce Packaging Industry Developments

In March 2022, Mondi Group bought corrugated packaging worth USD 315 million (280 million euros). The main goal of this investment is to address the rising demand for sustainability in the market.

DS Smith will invest $12.1mn into expanding the Cartogal packaging facility in Spain during July 2020. A Pobra do Caramiñal, located in Galicia, is home to one facility that will be enlarged, and millions of euros are being invested to grow its size, production, and storage capacity there. It would also enable the company to serve clients better across the area and enhance service delivery.

Constantia Flexibles is pleased to announce that it has successfully completed the acquisition of Drukpol Flexo, a well-established Polish-based packaging company, making them the third largest global producer of flexible packaging by June 2023

Mondi is an international group engaged in a wide range of operations with a focus on sustainable, innovative packaging solutions for various industries, including e-commerce.

Alpha Packaging designs and produces various types of plastic bottles and jars, which are used for pharmaceuticals, personal care products, and internet trading purposes, among others.

Retail E-commerce Packaging Market Segmentation

Retail E-commerce Packaging Material Outlook

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  Corrugated Boxes

  
  


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  Protective Packaging & Security envelopes

  
  


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  Tapes & labels

  
  


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  others

  
  

Retail E-commerce Packaging Application Outlook

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  Electronics & Consumer goods

  
  


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  Apparel & Accessories & Home furnishing

  
  


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  Auto Parts, Food & Beverages, Healthcare & Personal care

  
  


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  Others

  
  

Retail E-commerce Packaging Regional Outlook

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  North America

  
  
  
  
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    US

    
    
  
  
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    Canada

    
    
  
  
  
  


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  Europe

  
  
  
  
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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  


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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America