The Growth of E-Commerce Packaging Market

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The packaging market has noticed a rise in recent years, as more people prefer to purchase things online via e-commerce platforms. This new trend emerges since more people try to find convenient ways of buying things without having to go outside. As a result, the packaging market also grows, which the E-commerce Packaging Market Size is estimated to reach USD 173.9 billion in 2031, according to the research firm GMI Research.

What are The Drivers?

There are multiple factors that contribute to the growth of ecommerce packaging market, from the shifting customer behavior to the increased disposable income.

• The shifting customer behavior

One major factor that drives the e-commerce packaging market growth is the shifting customer behavior to online shopping. As many people prefer to buy things online it increases the necessity for packaging to handle and ship the products. 

The rapid growth of e-commerce in recent years also plays a significant role. Consumers shifted preferences towards a more convenient and accessible way to buy things is facilitated by the rise of online marketplaces. The practicality, user-friendly interface, and extensive product variety becomes the driving forces behind the expansion of e-commerce.

 

• The expanding of internet accessibility and smartphone users in developing countries and remote areas

The extending internet coverage and the increasing smartphone users especially in developing countries and remote areas also drives the growth of e-commerce platforms and e-commerce packaging market, as their access to purchase things online improved.

• The increased of disposable income

As consumers’ disposable income increased, they have the ability to buy things online. Not only for basic needs, but they will also look for a wider range of products. From products related to hobby, arts, foods, to fashion, among others. As they have more money to spend, they will also look for a more convenient, time-saving, and easier way to purchase things, which they can get by doing online shopping.

• The packaging innovation for consumers experience

To increase the customers’ experience and satisfaction, producers and manufactures can make innovation on their packaging, whether it is in terms of design, waste reduction, product protection, or temperature controlled packaging for food or pharmaceutical products.

By giving the consumers satisfying experiences, the packaging market can see more opportunities to grow and expand.

• Technological enhancement

As technology advances, business owners can find more efficient ways in the packaging and shipping process. The digital printing technology can provide a more unique and personalized packaging. Furthermore, business owners can reduce labor costs and increase efficiency by investing in packaging machines.

 

The Packaging Market Segmentation

Based on the segmentation, the packaging market can be sorted based on their product type, application, and material.

• By product type

Buyers can find many types of products to get on the e-commerce platforms, and so the packaging will be varied. From boxes, plastics, labels, and others, the packaging should be adjusted to the size, quantity, and the product’s features, so that it can be safely delivered to the consumers.

• By application

Meanwhile, by application, the e-commerce packaging market serves a wide variety of products, including fashion and accessories, food and beverages, cosmetics, kids and toys, electronics, home and furnishing, medicine and personal care, among other applications.

• By material

It can also be segmented based on the material. Some materials that are usually used for packaging can be made from paper and paperboards, corrugated boards, plastics, and wood, to name a few.

The Packaging Market Challenges

Nevertheless, there are some challenges that the market has to face, from cost limitations, product protection, to regulatory requirements.

• Cost limitation

The cost considerations especially for the packaging material and designs can limit the investment in packaging solutions. Businesses also must consider the shipping costs since the heavier or bigger packaging can lead to higher shipping costs.

When businesses choose their packaging, they also have to calculate the profit margins to maintain profitability. The lower the cost is, the higher profit they can get.

• Environmental concerns

There are rising concerns surrounding the packaging waste, including bubble wrap and cardboard boxes that can contribute to landfill overflow. Businesses need to find solutions to address the issue while meeting the consumers demands and gain profit.

• Regulatory requirements

Businesses have to make sure that they comply with regulatory requirements imposed by governments, including product safety, labelling, environmental standards, testing, documentation, and certification.

• Product protection

Ensuring product safety can be another challenge. It is important for businesses to make sure that the products are protected from any threat that can compromise them and that they can be safely delivered to the consumers.

The Packaging Market and The Opportunities Ahead

Despite the challenges, there are also several sectors that this market can put more focus on.

• Environmental orientation

The increased package shipping contributes to the destruction of the environment. Not only the landfill overflow the recycling and disposal facilities also contribute to carbon emissions which raises environmental concerns. Plastic packaging with poor product design is also highly wasteful if it is not disposed of properly which can lead to landfill overflow and marine pollution.

There is a growing concern about this thus a higher demand for sustainable products. Businesses can adopt more environmentally friendly wrapping, by avoiding single-use packaging.

With these approaches, business owners can protect the environment, while still meeting the consumers' demands and gain profits.

• More creative and innovative packaging to enhance customer experience

A more creative and innovative packaging can increase customer experience and satisfaction. Businesses can create customized and personalized packaging, include surprise gifts, and adopt unique and reusable packaging. These approaches can boost people’s desire to purchase more things online and thus drive the e-commerce packaging market to grow.

• Develop a more cost-efficient packaging

There is also an opportunity in the market to develop a more cost-efficient packaging solution. It can start by finding alternative materials with less production cost while still ensuring product protection. Businesses can also invest in automation technology to minimize labor costs and optimize operational productivity.

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