NEW YORK, Sept. 27, 2021 /PRNewswire/ -- The value of the global retail e-commerce packaging market is predicted to surge from $23,987.7 million in 2020 to $74,873.0 million by 2030, at a 12.1% CAGR between 2020 and 2030.
During the COVID-19 pandemic, the retail e-commerce packaging market has received a boost as the lockdowns led to the closure of many physical stores. Moreover, the stores that remained open witnessed a significantly lower footfall because the fear of infection has made many switch to online shopping. During these times, the sales of pharmaceuticals and other healthcare products and food and beverage products have especially increased via online shopping portals.
In the coming years, the retail e-commerce packaging market will continue to be dominated by the boxes category, based on material type. Boxes offer strong and durable packaging to products, which is why the demand for the former is high among online shopping portals, especially for long-distance transportation. Moreover, boxes protect the products from damage and help companies avoid spending 2–3 times more to reship them.
The consumer electronics category generated the highest retail e-commerce packaging market revenue in the past, on the basis of end user. Such products are of a high value, which is why they need to be protected from damage till they reach the end customer. Hence, with the sale of such products via online channels burgeoning, the demand for sturdy packaging materials is increasing too.
The major factors propelling the demand for such materials include:
Rising Internet Penetration: Compared to 0.049% in 1990, 56.727% of the people on earth had internet access in 2019, as per the World Bank. This has fueled the growth of the e-commerce industry as people can shop from home, pay electronically, browse a wide range of products, and have the goods delivered to them. Hence, with the booming number of online orders, the demand for packaging materials among e-commerce businesses is rising.
Booming Smartphone Sales: The rising smartphone sales are another major driver for the retail e-commerce packaging market as a large number of people use these devices to access the internet and shop online. With people's increasing disposable income and smartphones' declining prices, the sale of such consumer electronics is skyrocketing, thereby giving the e-commerce sector a further boost.
Asia-Pacific (APAC) has held the largest share in the retail e-commerce packaging market till now because of its huge population, which is rapidly shifting to online shopping. Within the region, the fastest industry growth is expected in India, which, according to the India Brand Equity Foundation (IBEF), will outgrow the U.S. to become the second-largest e-commerce market by 2034.
The major players in the global retail e-commerce packaging market are DS Smith Plc, Smurfit Kappa Group Plc, International Paper Company, Mondi Plc, Westrock Company, Packaging Corporation of America, Klabin S.A., Orora Limited, Sealed Air Corporation, Rengo Co. Ltd., Stora Enso Oyj, Sonoco Products Company, and Georgia-Pacific LLC.
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