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US E-Commerce Ready Packaging

Publisher Freedonia Group
Published Apr 12, 2024
Length 119 Pages
SKU # FG18690824

Description

US E-Commerce Ready Packaging


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 includes online shopping and delivery direct to customer’s front doors. This shift toward home delivery is leading to significant changes in operations, infrastructure, and logistics at companies throughout the supply chain.

Retail e-commerce sales of merchandise are forecast to grow 8.9% per year to $1.4 trillion in 2028. 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.

Sustainability Concerns Proliferate as Environmental Impact of E-Commerce Widens


The continuing robust growth of e-commerce has raised concerns about its environmental impact, particularly regarding carbon emissions from transportation and the large amount of packaging waste generated. Consumer 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 protective packaging materials – is forecast to grow 6.4% per year to $8.5 billion in 2028, lagging growth in e-commerce sales due to continued efforts to reduce the use of excess shipping materials.

Ships in Own Container (SIOC or SIPP) Driven by Environmental Concerns & Cost Savings


E-commerce ready packaging is a new movement in the packaging industry focused on addressing the sustainability and cost issues associated with growth in direct-to-consumer shipping. These new programs focus on two key areas of development:
  • Ships in Own Container (SIOC) packaging
  • improving sustainability, efficiency, cost, and supply chain optimizations
Demand for e-commerce ready packaging is being driven by leading global e-commerce giants such as Amazon and Alibaba, who are using their influence to push suppliers to meet their standards.

The shipment of 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, efforts to reduce packaging waste and improve profitability will continue to drive this shift away from traditional shipping materials.

This Freedonia industry study analyzes the e-commerce ready packaging industry and presents historical demand data for e-commerce packaging and e-commerce merchandise sales (2013, 2018, and 2023) and forecasts (2028 and 2033) by product type (boxes & mailers, protective packaging, and other) and market (computers, electronics & appliances; apparel & accessories; home furnishings; food & beverages; toys, games & sporting goods; health & beauty; and other). Annual historical data and forecasts for markets are also provided from 2013 to 2028. Data are given in dollar value.

Table of Contents

119 Pages
    • Figure 1-1. E-Commerce Ready Packaging Market
    • What is E-Commerce Ready Packaging (ECRP)?
    • Factors Impacting Packaging Demand
    • US Retail Sales & Consumer E-Commerce Sales Outlook
    • Annual Parcel Shipping Trends
    • Regulations & Standards
    • Sustainability Issues
    • Global E-Commerce Trends
    • Recycling Attitudes & Environmental Responsibility
    • Thoughts About Sustainability
    • Importance of Various Sustainable Lifestyle Practices
    • Sustainable Packaging Features Particularly Sought
    • Amount Spent Shopping Online
    • Shopping Activity at Leading Websites
    • Online Shopping Packaging Insights
    • QR Codes
    • General Trends
    • E-Commerce Retailer Initiatives
    • Product Manufacturer & Packaging Company Initiatives
    • What are SIOC & SIPP?
    • Number of SIOC Packages Shipped
    • Amazon Drives SIOC Development through SIPP Program
    • SIOC Impact on Shipping Container & Packaging Demand
    • Overview
    • Corrugated Packaging Boxes
    • Bag-in-Box Packaging
    • Folding Cartons
    • Pouches & Bags
    • Protective Packaging
    • Caps & Closures
    • Retail E-Commerce Sales Trends
    • E-Commerce Shipping Containers & Packaging Demand
    • Computers, Electronics & Appliances
    • Apparel & Accessories
    • Home Furnishings
    • Health, Beauty, &Personal Care
    • Toys, Games, &Sporting Goods
    • Food & Beverages
    • Other Merchandise
    • Report Details
    • Definitions
    • Abbreviations
    • Freedonia Methodology
    • Study-Specific Methodology
    • Sources
    • Related Studies & Reports
    • Macroeconomic Assumptions
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