E-Commerce Packaging Market

E-Commerce Packaging Market Overview

The global E-Commerce Packaging Market size was valued at USD 65.94 billion in 2023 and is predicted to reach USD 153.16 billion by 2030 with a CAGR of 12.9% from 2024-2030.

The e-commerce packaging industry includes the process of packaging materials specifically designed to protect, store, and transport goods sold through online platforms. It includes a wide range of materials and products, such as corrugated boxes, protective wraps, and eco-friendly packaging solutions that cater to the diverse needs of various industries such as retail, consumer electronics, food and beverages, fashion, and health products. This industry is primarily driven by the need for safe, secure, and sustainable packaging solutions to handle long-distance shipping, warehousing, and returns management.

Moreover, regulatory measures in the e-commerce packaging industry prioritize sustainability and consumer safety. For instance, the Environmental Protection Agency (EPA) in the U.S. and the European Commission enforce regulations promoting recyclable and eco-friendly packaging to reduce environmental impact.

Market Dynamics and Trends

The global rise in online shopping increased the demand for reliable packaging materials to ensure safe delivery, especially for electronics, fashion, and groceries that require protection from damage during shipping. According to the International Trade Administration, the global e-commerce revenue is expected to grow at USD 5.5 trillion by 2027 as compared with 2023 with a revenue of USD 3.6 trillion. This further drives the demand for packaging solutions to cater the growing demand of online shopping among the consumers.

Also, increasing demand for safety and freshness in food and beverages industry drives companies to adopt innovative packaging materials such as vacuum-sealed bags and tamper-evident seals. This focus on quality and contamination prevention enhances consumer trust and ensures compliance with regulatory standards. As per the data furnished by the World Bank, the food and beverage sector in Canada accounted approximate 18% in the country’s GDP. Also, the F&B industry in Germany represented almost 8% in the overall GDP for the year of 2022.

Moreover, growing demand for convenient delivery in the pharmaceutical sector drives the adoption of innovative e-commerce packaging solutions that ensure safe and efficient shipping, while also facilitating easy returns and compliance with regulatory requirements. According to World Bank data, healthcare spending in the U.S. was about 16.57% of GDP in 2022, while Germany's was approximately 12.65%. This increase in healthcare expenditure in major countries highlights the rising adoption of e-commerce packaging for pharmaceutical products. However, fluctuations in the prices of packaging materials, such as paper, plastics, and metals are hindering the growth of market.

On the contrary, integration of metal packaging including aluminium creates future opportunity growth for the e-commerce packaging industry. This attributes to the growing urgency of carbon footprint reduction and implement sustainable packaging. As per the report published by PwC, metal packaging industry including aluminium represents approximately 11% share of the overall packaging market. Also, aluminium market is expected to double in size by 2050 driven by increasing demand for green aluminium that is set to rise significantly in the coming decades. This significant increase in numbers further creates the potential to meet the growing market demand worldwide.

Market Segmentation and Scope of Study

The e-commerce packaging market report is divided on the basis of material, packaging type, end user and region. On the basis of material, the market is categorized into paper and paperboard, plastic, glass, and other materials. On the basis of packaging type, the market is segmented into flexible and rigid. On the basis of end user, the market is divided into food and beverages, pharmaceuticals, personal care and cosmetics, electronics and electricals, apparels and accessories, consumer goods, and other end users. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia-Pacific holds the dominating in e-commerce packaging market share and is expected to continue its dominance throughout the forecast period. This is attributed to the rising expansion of online shopping in countries such as China and India. It significantly increases the demand for effective packaging solutions to accommodate higher volumes of product deliveries.

According to the International Trade Administration (ITA), India is one of the fastest growing regions for e-commerce market with a revenue of USD 46.2 billion in 2020 and is expected to grow at USD 136.47 billion by 2026. As the e-commerce market continues to grow the e-commerce packaging market demand for packaging solution is expected to surge that ultimately drives the growth of the industry.

Also, the growth of e-commerce packaging in the Asia-Pacific region is driven by increasing consumer demand for sustainable packaging solutions, as more shoppers prioritize eco-friendly materials. This shift compels businesses to innovate and adopt sustainable practices to meet consumer expectations and comply with regulatory pressures aimed at reducing plastic waste.

For instance, in July 2022, UPS China developed its biodegradable packaging bags that decompose within 180 days through composting, making it the first country in its network to implement this sustainable solution. This initiative is part of UPS's broader strategy to reduce environmental impact, which also includes introducing electric vehicles and establishing eco-friendly operations centers across China.

On the other hand, North America is considered fastest growing region in the e-commerce packaging industry owing to the rise of urbanization in North America that influences trends towards sustainable, efficient, and innovative packaging. According to data published by the United Nations Population Division, the urban population in the United States reached approximately 276.91 million in 2022, in contrast to a rural population of only about 53.38 million. This significant urban growth drives the demand for e-commerce packaging solutions to meet the evolving needs of urban consumers within the region.

Moreover, the leading companies are adopting various business strategies including product launch and business expansion, which in turn is boosting the e-commerce packaging market growth. For instance, in July 2024, DS Smith launched its PackRight 2.0, a hybrid collaboration service that enables businesses, particularly in e-commerce and fast-moving consumer goods, to redesign their packaging for enhanced sustainability and efficiency. This initiative is crucial as the growth of e-commerce drives demand for innovative packaging solutions that minimize environmental impact while optimizing supply chains.

Competitive Landscape

Various key players in the e-commerce packaging industry includes DS Smith, Amcor plc, Mondi Group, International Paper Company, Smurfit Kappa, Sealed Air, Sonoco Products Company, Alpha Packaging, Berry Global Group, Inc, Rengo Co., Ltd, and Others. These companies are opting various strategies such as collaboration to maintain their dominance in the global e-commerce packaging industry.

For instance, April 2024, DS Smith partnered with Swedish manufacturer Jonsac to enhance sustainable e-commerce packaging by promoting 100% recyclable, FSC-certified paper bags across Europe. This collaboration aims to reduce plastic reliance and expand the availability of eco-friendly packaging solutions for customers.

Moreover, in May 2024, Amcor expanded its business reach with the launch of its Innovation Center Europe to create sustainable packaging solutions through collaboration and innovative materials. This center supports the growth of e-commerce packaging by testing and certifying packaging for online retail, ensuring it meets the needs of logistics and sustainability.

Additionally, in September 2023, International Paper expanded it business reach with an investment of USD 100 million for developing corrugated packaging facility in Atglen, Pennsylvania. The facility produces various corrugated packaging solutions for sectors including produce, processed food, beverages, shipping, distribution, and e-commerce.

Furthermore, in May 2022, Mondi partnered with beck packautomaten to launch a FunctionalBarrier Paper solution for automated eCommerce packaging, which is made of 95% paper and offers enhanced moisture protection while being recyclable. This innovative solution aims to replace plastic packaging, responding to the growing demand for sustainable options in the online retail sector.

Key Benefits

• The report provides quantitative analysis and estimations of the e-commerce packaging market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future e-commerce packaging market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the e-commerce packaging industry is provided in the report.

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

E-Commerce Packaging Market Key Segments

By Material

• Paper and Paperboard

• Plastic

• Glass

• Other materials

By Packaging Type

• Flexible

• Rigid

By End User

• Food and Beverages

• Pharmaceuticals

• Personal Care and Cosmetics

• Electronics and Electricals

• Apparels and Accessories

• Consumer Goods

• Other End Users

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden

  • Norway        

  • Russia        

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• DS Smith

• Amcor plc

• Mondi Group

• International Paper Company

• Smurfit Kappa

• Sealed Air

• Sonoco Products Company

• Alpha Packaging

• Berry Global Group, Inc

• Rengo Co., Ltd.

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 65.94 Billion
Revenue Forecast in 2030	USD 153.16 Billion
Growth Rate	CAGR of 12.9% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Rising prevalence of online shopping is driving the growth of the market. Increasing demand for safety and freshness in food and beverages is thriving the market growth. Growing adoption of packaging solutions in pharmaceutical sector drives the market expansion.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.