Report: Global Value For E-commerce To Reach $51.7 Billion In 2020 In the latest report from Smithers, the global value for e-commerce packaging is expected to reach $51.7 billion in 2020, as COVID lockdown and store closures push more consumers online. This projection represents an in- crease of $14.0 billion compared to the $33.7 billion mar- ket of 2019. In-depth analysis in the new Smithers study – The Fu- ture of E-commerce Packaging to 2025 – shows consump- tion will be around 40 percent higher in 2019. As consumer habits change, business models adapt and more retailers close physical stores; demand for e-commerce packaging will continue to boom through to 2025 at an accelerated compound annual growth rate (CAGR) of 17.0 percent In 2025 this market will reach a value of $113.5 billion, over 10 percent of the total packaging market worldwide. This makes e-commerce one of the most important and exciting market opportunities for packaging converters and material suppliers. Smithers exclusive market analy- sis sub-divides this segment by e-commerce packaging format (corrugated board; flexible paper, plastics, and foil packaging; mailers; protective components); end-use ap- plication, and geographic market. All e-commerce formats will see double digit CAGRs through to 2025. Corrugated is the most valuable seg- ment of the e-commerce packaging market. Value will rise from $30.0 billion in 2019 to $41.6 billion in 2020 and is forecast to more than double again by 2025 as it witness- es the fastest growth of all e-commerce formats. The Smithers analysis identifies the following key changes in the market that will define future profitability for packaging suppliers and converters in e-commerce: • In 2019, clothing, fashion accessories, and consumer electronics were already well established in e-com- merce channels. In 2020 the market has expanded with high volumes of groceries, sports equipment, cos- metics and personal care items being shipped. • Covid-19 has broadened the consumer base using e-commerce, beyond millennials and digital natives to include more older age groups. Many will continue to use this sales channel even when lockdown (shelter-in- place) orders are withdrawn, fundamentally reshaping the retail landscape; • A major value-adding service for packaging suppliers and converters are delivery formats that enhance con- sumer experience. This includes brand printed packag- ing; pre and post-ordering customised packs; and inno- vative designs that differentiate a product by giving it a unique “unboxing” experience on delivery; The impact of Covid-19 and these other trends is as- sessed critically in this new Smithers study, with an em- phasis on how e-commerce is creating new market oppor- tunities for packaging converters and suppliers. Visit www.smithers.com for more information.
28
www.boardconvertingnews.com
November 16, 2020
Made with FlippingBook Online newsletter