Packaging has become an essential tool nowadays. Highly functional and visually appealing packaging can attract the attention of the consumer. E-commerce packaging includes primary and secondary packaging made for a variety of products. The scope of the e-commerce packaging is limited to the solutions offered by different packaging materials and their applications for a wide range of e-commerce products. The current development in the e-commerce market is cross-border online shopping. Packaging helps protect products from environmental damage and contamination such as microbes, moisture, and dust.
Though the global pandemic (COVID-19) hit the world economy hard, the e-commerce sector seems to have grown leaps and bounds since April 2020. Emerging economies such as China, Brazil, India, etc. are opening up their markets to neighboring countries expecting to increase consumption of foreign goods, which is also expected to propel the growth of the market. Currently, India is now 9th worldwide in cross-border e-commerce growth. Moreover, attractive offers and the availability of desired products have investigated the cross-border e-commerce growth, which, in turn, increases the demand for e-commerce packaging.
Furthermore, the increase in online shopping due to COVID-19 outbreak and the growing popularity of smart packaging is expected to drive the e-commerce packaging market growth. For instance, in October 2020, Amazon (an e-commerce company) reported blowout third-quarter results as a pandemic helped the company triple its profits amid a 37% increase in earnings. Moreover, in July 2020, Amazon reported the biggest profit in its 26-year history as online sales and its lucrative business supporting third-party merchants surged during the coronavirus pandemic.
E-commerce has transformed the retail sector and it is gaining significant market share in place of conventional retail channels such as convenience stores, supermarkets, and hypermarkets. E-commerce packaging is important for products such as furniture and electronics, as well as for branding and customer retention. E-commerce packaging includes labels, tapes, mailers, boxes, and protective packaging among others, which are used for packaging of products sold on online platforms. The rapid growth of the retail and the e-commerce industry is driving the growth of the e-commerce packaging market.
In terms of geography, the e-commerce packaging market is divided into six regions, such as North America, Europe, Asia Pacific, South America, Middle East, and Africa. North America, Asia Pacific, and Europe are expected to witness substantial growth in the market due to the presence of major players and high internet and smartphone penetration in these regions. Snapdeal, Flipkart, and Amazon India are among the major e-commerce players operating in India. However, the demand for e-commerce packaging depends largely on the performance of these companies in the market.
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