E-Commerce Packaging Market Driven By Environmental Concerns Retail e-commerce sales of merchandise are forecast to grow 8.9 percent per year to $1.4 trillion in 2028, accord- ing to “U.S. e-Commerce Ready Packaging Market 2024- 2033,” issued by ResearchAndMarkets.com. This represents a slowdown from the high levels seen during the pandemic, but it is still well above growth in overall retail sales and most sectors of the US economy. However, the continued expansion of home delivery is having opposing impacts on the packaging industry and the types and amount of packaging used. E-commerce continues to have a profound impact on the packaging industry as companies adapt to the rapid shift from traditional retail models focused on brick-and-
mortar stores and centralized distribution to one that in- cludes online shopping and delivery direct to customer’s front doors. This shift toward home delivery is leading to significant changes in operations, infrastructure, and logis- tics at companies throughout the supply chain. The continuing robust growth of e-commerce has raised concerns about its environmental impact, particu- larly regarding carbon emissions from transportation and the large amount of packaging waste generated. Consum- er product manufacturers, retailers, and parcel shipping companies are all looking for more sustainable practices that optimize packing and delivery, reduce the amount of shipping materials used, and include the development new eco-friendly and delivery-compatible options. Demand for traditional e-commerce related packaging - primarily shipping boxes, mailers and associated protec- tive packaging materials - is forecast to grow 6.4 percent
per year to $8.5 billion in 2028, lagging growth in e-commerce sales due to con- tinued efforts to reduce the use of excess shipping materials. The shipment of Ships in Own Contain- er (SIOC) packages will continue to see double-digit growth over the next decade, reaching 6 billion units in 2028. While a small share of packages have historically been shipped in their own packaging, ef- forts to reduce packaging waste and im- prove profitability will continue to drive this shift away from traditional materials. While the shift toward online shopping was well underway by 2020, the pandem- ic significantly accelerated it; there were sharp spikes in online purchasing in 2020 and 2021. Since then, some consumers have started to return to their pre-pan- demic habits and preferences, resulting in a drop from the unusually high levels of online shopping. On the other hand, there are customers that have continued to rely on online shop- ping; their behaviors will have an important effect on the need for e-commerce ready packaging. Factors driving consumers to remain online shoppers include continuing closures of brick-and-mortar retail stores, which can significantly limit the availability of items that would have been purchased at those stores. But there are reasons for shoppers to return to brick-and-mortar stores, including the desire to support lo- cal businesses, the difficulty of dealing with numerous shipping boxes and pack- aging waste, a preference for picking out items in person, the difficulty or cost in returning items that are not wanted, and concerns about the environmental impact.
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October 28, 2024
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