The E-commerce Plastic Packaging Market is expected to grow at a CAGR of 17.2 % over the forecast period (2021 - 2026). The outbreak of COVID-19 at the beginning of 2020 caused a significant increase in the usage of e-commerce instead of the traditional brick and mortar sales as the lockdown measures were implemented in multiple countries to curb the spread of the virus. The pandemic has resulted in the return of single-use plastic bags and boxes due to hygienic reasons, thus, positively impacting the usage of plastic packaging in e-commerce.
- The rapid growth of the market is primarily driven by fashion and apparel, consumer electronics, and personal care industries. Considerable investments in the consumer electronics, personal care, and fashion and clothing industries are creating a scope for the expansion of packaging opportunities. The e-commerce industry is exploiting the opportunities in the packaging landscape driven by the young demographic profile, with increasing internet penetration and relatively better economic performance in the past few years.
- The market is witnessing the launch of multiple plastic resins made from recycled plastic. In January 2021, Dow announced the commercial usage of its AGILITY CE resin, which is made with 70% recycled plastic. A film converter based in Spain known as Plastigaur utilizes the resin in its collation shrink film, generally utilized in the transportation of PET bottles or cans. The PCR content in the final shrink film developed by Plastigaur is 50%, which reportedly results in 25% reductions in carbon emissions.
- E-commerce has emerged to be a prominent choice for the consumer to purchase goods during the last decade or so. The rising internet penetration, growing access to the internet across the vast majority of the populations in developing economies, increasing smartphone penetration, advancements in technology, and rapid urbanization have created a massive opportunity for the e-commerce market. According to Spiralytics, digital online buyers are estimated to reach 2.1 billion in 2021
- The rapid growth of the market is primarily driven by fashion and apparel, consumer electronics, and personal care industries. Considerable investments in the consumer electronics, personal care, and fashion and clothing industries are creating a scope for the expansion of packaging opportunities. According to IBEF, in 2020, electronics were the most significant contributors to online retail sales in India, with a 60% share, followed closely by the personal care, wellness, and beauty segment at 29%.
- Moreover, companies are adopting an omnichannel distribution strategy for their products, including online purchasing, which is fuelling the growth of e-commerce packaging as a whole. The statistics by ReadyCloudSuite suggest that 66% of online shoppers rely on more than one channel for purchases, and 60% of shoppers begin product research on a mobile device before purchasing, validating the growth prospects.
- Further, bioplastic is taking a prominent role in e-commerce packaging material used as it has a wide range of applications. The most common source of bioplastic is fermented starch from corn and wheat, as it is highly durable and biodegradable. Also, to replace the ever-present plastic bag, plant fibers, such as jute and hemp, are widely used as containers.
Key Market Trends
Consumer Electronics and Media to Hold Significant Market Share
- In the current market scenario, to achieve efficient packaging, plastics often enable manufacturers to ship more products with lesser packaging material. This process of light-weighting can play an essential role in boosting the environmental and economic efficiency of consumer product packaging. Also, blister packaging is ideal for small consumer electronic goods. This type of plastic packaging highlights electronic accessories and provides some degree of tamper resistance while still being convenient and easy to open. These characteristics are helping drive market growth.
- Sustainable packaging guidelines have also been incorporated into the qualifying criteria of the EPEAT (Electronic Product Environmental Assessment Tool) by global industry groups, such as the Green Electronics Council.Eco-friendly packaging is becoming a popular choice for electronic products.
- Protective packaging items, such as air bubble wraps, air pillows, and other inflatable packaging products, which can protect consumer electronics, are becoming increasingly popular among manufacturers of packaging products for consumer electronics. These packaging options are expected to meet the needs of all electronic segments in the future.
- Government authorities and regulators have made a strong push for the adoption of green packaging. Both brands and customers are becoming more aware of eco-friendly packaging and the importance of safeguarding the environment from non-biodegradable packaging waste.
- Cell phones are usually packed and shipped using plastic material. Although many manufacturers are shifting toward sustainable packaging options, the use of plastic films and wraps to package boxes is growing. In April 2020, Samsung Electronics opted to use new eco-friendly packaging across its entire Lifestyle TV product range. The move is part of the company's attempts to lessen its carbon footprint in the coming years.
China of Asia Pacific region to Witness Significant Market Growth
- China is one of the world's largest e-commerce markets, surpassing the United States and the European Union. According to Statista, the number of online buyers has increased from 610.1 million in 2018 to 782.4 million in 2020. The surge is attributed to the global lockdown across various countries.
- The growing e-commerce business in the region is also pushing the market for e-commerce product packaging. According to the Straits Times, Alibaba and JD.com's single-day online discount sales generated 160,000 metric tons of packaging trash in China. Furthermore, according to government data, these e-commerce products are packaged in 8.27 billion plastic bags. Greenpeace also reports that the volume of packaging material used by the e-commerce sector was 9.4 million tons in 2019 and is anticipated to reach 41.3 million tons by 2025.
- Due to expanding consumer preference for online shopping, the proliferation of payment options, as well as online shopping events, including single-day offers, enticing discounts, and enhanced logistic infrastructure, China is one of the emerging nations where the e-commerce sector is expanding rapidly.
- The e-commerce boom in the country has compelled the packaging companies and resellers to explore sustainable packaging alternatives, including recycled plastics, among others. Such initiatives are likely to boost the e-commerce packaging market growth in the coming years.
The market studied is fragmented, with market incumbents, such as Amcor PLC, Berry Global Inc., and Sealed Air Corporation, Pregis LLC, Sonoco Products Company, Storopack Hans Reichenecker GmbH operating in the market. Companies are gaining sustainable competitive advantage through innovation in design, technology, and application.
- February 2021 - Sealed Air Corporation declared that it had set a new target of net-zero carbon emissions by 2040. This announcement was in line with the successful performance of the company in implementing the sustainability strategy and its 2020 objective to reduce its operational greenhouse gas intensity by 25%. By achieving a reduction of more than 44%, the company far exceeded its target for 2020.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
1.2 Scope of the Study
4.2 Assessment of COVID-19 impact on the Industry
4.3 Market Drivers
4.3.1 Growing Proliferation of Online Retailing and Emergence of Omni-channel Presence
4.3.2 Increasing Biodegradable Plastic Packaging for Online Retail
4.4 Market Restraints
4.4.1 Regulation Pertaining to Use of Plastic and Lack of Exposure to Good Manufacturing Practices
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Buyers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
5.1.1 Pouches and Bags
5.1.2 Protective Packaging
5.1.3 Shrink Films
5.1.4 Other Product Types
5.2 End-User Industry
5.2.1 Consumer Electronics and Media
5.2.2 Food and Beverage
5.2.3 Personal Care Products
5.2.4 Fashion and Apparel
5.2.5 Home Care and Furnishing
5.2.6 Other End-User Industries
5.3.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
5.3.3 Asia Pacific
188.8.131.52 Rest of Asia Pacific
5.3.4 Latin America
184.108.40.206 Rest of Latin America
5.3.5 Middle East and Africa
220.127.116.11 United Arab Emirates
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of Middle East and Africa
6.1.1 Amcor PLC
6.1.2 Pregis LLC
6.1.3 Sealed Air Corporation
6.1.4 Sonoco Products Company
6.1.5 Storopack Hans Reichenecker GmbH
6.1.6 Berry Global Inc.
6.1.7 Huhtamäki Oyj
6.1.8 CCL Industries Inc.
6.1.9 Clondalkin Flexible Packaging
7.3 Asia Pacific
7.4 Latin America
A selection of companies mentioned in this report includes:
- Amcor PLC
- Pregis LLC
- Sealed Air Corporation
- Sonoco Products Company
- Storopack Hans Reichenecker GmbH
- Berry Global Inc.
- Huhtamäki Oyj
- CCL Industries Inc.
- Clondalkin Flexible Packaging