The retail e-commerce packaging market revenue totalled US$ 16.0 Bn for 2021, according to FMI. The overall retail e-commerce packaging market is projected to expand 1.3 times the current market value by the end of 2027. The demand for retail e-commerce packaging will accelerate with the top 3 countries estimated to hold 35-40% of the retail e-commerce packaging market in 2022.
The retail e-commerce packaging market saw soaring growth in 2021 with worldwide revenues up 4.9% year over year. A new forecast by FMI forecast that the retail e-commerce packaging market is anticipated to create an incremental opportunity of US$ 5.4 Bn during the foreseeable period.
Future Market says, the protective packaging segment and the boxes segment are estimated to remain the most lucrative segment among others. Collectively both segments are projected to hold approximately 63% of the market value share for the retail e-commerce packaging market by the end of 2027.
Attributing to the expanding retail and e-commerce sector in APAC and Europe, retail e-commerce packaging sales in the region is forecasted to capture around 64% of the global market. Moreover, APAC and Europe regions collectively estimated to create the highest growth opportunity of US$ 3.1 Bn during the forecasted period.
How the Rising Penetration of E-Commerce in Tier-II and Rural Areas Augment the Sales of Retail E-Commerce Packaging?
The rising prominence of the e-commerce sector is being fuelled by the rapid proliferation of the smartphone which is giving a boost to the retail revolution by adding m-commerce features to the e-commerce functionality.
This growth was primarily concentrated in the main cities where there was an increasing use of smartphones and tablets, coupled with readily available access to the internet via broadband, 4G, etc. and this led to the consumer base of e-commerce increasing rapidly.
However, the new set of growth waves in the e-commerce industry is coming from tier II and tier III cities and rural areas as well. This is truer for the emerging economies of the world, where a majority of the population live in such tier II and III cities and rural areas.
Due to the expansion of the logistic carrier network, a shipment can be delivered across a much wider geography. In countries such as India, a bulk of the e-commerce business comes from tier II and III cities. Hence, the consumers of such tier II and III cities are trying to emulate the lifestyle and consumption patterns of consumers in metros and tier I cities. This has given a strong fillip to the retail e-commerce packaging market.
What was the Impact of the COVID-19 Pandemic on the Global Retail E-Commerce Packaging Market?
The e-commerce sector remained growing during the COVID-19 pandemic as people started to prefer online sales which gain the ray of opportunity for the retail e-commerce packaging market. The global e-commerce sales remained to grow during COVID-19 as the number of e-commerce users started to increase across the globe which has a positive impact on the retail e-commerce packaging market.
The global e-commerce sales jumped to US$ 26.7 trillion in 2019, according to the United Nations Conference on Trade and Development (UNCTAD). This indicates the growth opportunity for the retail e-commerce packaging market.
Besides this, the various online delivery platform started to operate during COVID-19 to gain the advantage which bolsters the demand for the retail e-commerce packaging market. Also, the home delivery facilities by the retail shop add to the sales of the retail e-commerce packaging market. Overall, the positive impact of COVID-19 on the e-commerce industry had fair & direct impact on the retail e-commerce packaging market.
Country-wise Insights
How will the U.S. Create Market Growth Opportunity for the Retail E-Commerce Packaging Market?
The major portion of the North American retail e-commerce packaging market is captured by the U.S. which accounts for 3/4th of the North American retail e-commerce packaging market along with creating an incremental opportunity of US$ 645 Mn during 2022-2027.
The e-commerce market expanded at a faster pace during the COVID-19 pandemic. The global e-commerce sales jumped to US$ 26.7 trillion in 2019, according to the United Nations Conference on Trade and Development (UNCTAD). Besides this, the U.S. remained at the leading position in the e-commerce market.
The total e-commerce sales in the U.S. were US$ 9.6 trillion. Also, the retail sales in the U.S. grew by around 6.7% in 2020 according to the National Retail Federation (NRF). This indicates the growth opportunity for the retail e-commerce packaging market in the U.S.
How Mexico will bolster the Retail E-Commerce Packaging Market Growth?
Mexico is anticipated to remains the growing country generating revenue across Latin America for the retail e-commerce market. Mexico retail e-commerce packaging market is projected to expand 1.4 times the current market value by the end of 2027.
According to the Mexican Online Sales Association, in 2020, domestic e-commerce in Mexico valued at US$ 15.8 billion saw an increase of over 80 per cent from 2019. E-commerce users in Mexico also increased by 9% in 2020 from 2019. The expanding e-commerce sector in Mexico is bolstering the growth of the retail e-commerce packaging market.
Competitive Landscape
The key players operating in the retail e-commerce packaging are focusing on expanding their product portfolio for retail & e-commerce packaging along with some innovation in the product that meets the current requirement of sustainable and recyclable packaging.
· In August 2021, DS Smith plc announced the launch of 100% recyclable e-commerce packaging which will help the company to offer a glamorous appearance in online retail along with no plastic filling and 100 % corrugated cardboard.
· In June 2021, Mondi plc. Announced the expansion of its plastic-free e-commerce packaging range. The company extended its MailerBAG range of sustainable paper solution
