Ecommerce Packaging Industry in 2020
As it currently stands, the global ecommerce packaging industry is estimated to be worth up to $35.142 billion. This is already a major boost up from 2019, where the estimated value of the market was around $27.04 billion. In fact, the over $27 billion it was worth in 2019 was up a hefty 18% from 2018. This major bump is on the back of the ecommerce market as a whole, which has seen astounding growth to replace the many closed physical location stores that remained closed due to COVID-19. In fact, in the United States, retail ecommerce sales jumped by a whopping 32.4% compared to 2019. This jump translates to around $794.50 billion in annual retail sales, putting 2020 much farther ahead than original projections, which did not see this level of sales happening until 2022. In fact, these sales will result in 14.4% of all retail spending in the United States this year from online purchases. Ecommerce packaging is going to play a major factor in essentially all of this 14.4%. Especially with the expanded demand being high for packaged foods and electronic devices, ecommerce packaging will continue to grow well into the future. This is especially true in the Asia-Pacific region, where countries such as China, India, and Indonesia will be responsible for major growth. Each of these nations is set to see their demand for mobile devices reach even higher heights.
Ecommerce Packaging Industry in the Future
Global ecommerce packaging is set to explode in the coming years, with the industry set to be worth $86.869 billion by 2026, over double what it is currently worth. This will be achieved with a compound annual growth rate (CAGR) of around 13.3%. On top of the already extremely spiked ecommerce sales numbers in 2020, the ecommerce industry is going to reach even farther. In many developing countries, and countries which are rapidly moving forward, internet accessibility and internet penetration in these regions is exploding. Particularly in countries like India, where the middle class is rapidly expanding, smartphone and internet usage increases, and city development progresses, ecommerce is moving at an extremely high level.
This expansion in the ecommerce packaging industry will be led by companies such as Regis Corporation and DS Smith Plc. In fact, both companies have seen growth in line with the industry, with Regis Corporation generating over $500 million in annual revenue and boasting a growing workforce of over 1,000 employees. In turn, DS Smith has seen a 5% growth in overall profits despite less industrial demand due to the massive increase in consumer demand.
The ecommerce industry is backed by heightened consumer demand and an even larger growth estimate over the coming years. In conjunction with these factors, it is evident that ecommerce packaging must meet the shipping demands of the people. In countries where this market is only beginning to develop, the industry is primed for even larger growth leading to an overall market value that will reach over $85 billion by 2026 and easily cross $100 billion before the end of the decade. Ecommerce packaging is inextricably linked to ecommerce as a whole; as ecommerce surges, so will all industries supporting it.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.