Market Trends of India E-Commerce Packaging Industry
This section covers the major market trends shaping the India E-Commerce Packaging Market according to our research experts:
Protective Packaging to Witness Significant Market Growth
- The demand for protective packaging in the Indian e-commerce industry is set to witness unprecedented growth due to the rapid strides in consumer electronics sales in e-retailing. According to IBEF, consumer electronics is currently the most significant contributor to online retail sales in India, with a 48% share contributing to the market's growth.
- These protective packaging products are designed and constructed to protect the goods from atmospheric, magnetic, electrostatic, vibration, or shock damage. Protective packaging protects machinery, equipment, and industrial goods from harm while being stored and transported. It also provides security through the void fill, wrapping, flexible cushioning, blocking and bracing, defensive containment, and surface defense.
- Protective packaging is used in various applications, such as food, electronics, cosmetics, and pharmaceutical industries. Products include boxes or storage containers, packing materials, liners, and spacers. Flexible products, such as air pillows, paper fill, bubble packaging, and mailers, are expected to be the primary product beneficiaries of rapid growth in the e-commerce market.
- Protective airbags for sending mobile phones, accessories, boxes, etc., are widely used in the e-commerce segment as they help protect goods from damage during transit. Companies, such as Vijay Packaging System, provide these types of packaging. They are made of polypropylene for the e-commerce segment. The company's air tube bags are inflatable airbags used for transporting jars, bottles, and containers, especially for use in cosmetic products.
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Fashion and Apparel Accounts for Significant Market Share
- With media exposure, rising awareness, and increasing disposable income, Indian consumers are looking to get access to global fashion brands. The limited reach of brands through brick-and-mortar retail outlets in smaller cities provides an opportunity for online retailers.
- India's e-retail market is anticipated to develop at one of the quickest rates in the world because of significant investment in the area and a sharp rise in internet users. According to IBEF, apparel and lifestyle comprise a share of approximately 29% (including footwear, bags, belts, wallets, watches, and jewelry) in India.
- According to Apparel Sourcing Week, the Indian fashion retail market is set to account for USD 115 billion by 2027, which may aid the growth of e-commerce packaging. Corrugated boxes are ubiquitous and are widely used packaging materials for the e-commerce industry in the apparel segment, as the material is solid and highly durable.
- For instance, Arihant Agencies provides a corrugated box (outer brown box) for the apparel sector in an e-commerce platform, which keeps the product safe and secure while storing and shipping. This secondary packaging is available in different sizes and styles and with other specifications.
- The company also provides courier bags designed to protect products and deliver them to the desired destination. These bags are lightweight, water-resistant, and cost-effective. They are also biodegradable, tamper-proof, transparent, and recyclable.
