Market Trends of E-Commerce Packaging Industry
Consumer Electronics Segment to Witness Significant Growth
- Consumer electronics are shaping consumers' security, communications, and entertainment lifestyles. Over 2.14 billion people were estimated to shop online in the year 2021. Consumer electronics is the segment that has a shorter changeover period. Also, the adoption of consumer electronics is reaching a new high every month, increasing shipments yearly.
- E-Commerce has gained consumers' trust in quality deliverables and aftersales support, encouraging them for multiple orders online. Packaging solutions offer robust packaging solutions to sustain damages during handling and logistics.
- The mobile market is the refreshed category of consumer electronics with the highest penetration, and with continuous development by the technologies, the mobile market growth is multiplying. Also, in response to this growth, e-commerce companies are partnering for their launches and distribution, resulting in the growing demand for the e-commerce packaging market.
- The increasing number of product developments will increase the industry's growth rate by opening up new market opportunities. Various product innovations illuminating design and manufacturing processes also assist market growth. Technological improvements in developing effective and environmentally friendly e-commerce packaging are projected to generate profitable opportunities for manufacturers in the e-commerce packaging market.
- Many e-commerce companies focus on sustainable packaging solutions to reduce plastic waste and move towards paper-based packaging. The trend is also expected to hit the consumer electronics segment, which is sensitive to external impacts with better design to make packaging more robust. For instance, e-commerce giant Amazon introduced a Frustration-Free Packaging solution to eliminate additional shipping boxes.
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Asia Pacific is Expected to Hold the largest Share
- Asia-Pacific is one of the world's fastest-growing e-commerce markets. Growing client bases in key countries such as India and China drive increased e-commerce shipments. As a result, there will be greater demand for packaging solutions in the area.
- Government attempts to promote digitalization constantly introduce individuals to online modes of commerce, fueling demand for e-commerce packaging solutions in the region. India has a favorable FDI policy of 100 percent, which encourages corporations like Amazon to establish a greater presence in the country.
- IBEF has said that increasing internet penetration and relatively stronger economic performance will lead India's E-commerce revenue to climb from USD 46.2 billion in 2020 to USD 188 billion in 2025, the fastest growing in the world.
- The Asia-Pacific region held the largest market share in 2021 and is expected to hold that position throughout the forecast period. The expanding internet penetration, the growing number of smartphone users, and the rising youthful demographic consumer base all contribute to the company's dominance. Furthermore, large e-commerce companies in the region, such as Alibaba, Amazon, and Flipkart, will increase the region's usage of online packaging services.
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