Market Trends of North America E-Commerce Packaging Industry
This section covers the major market trends shaping the North America E-Commerce Packaging Market according to our research experts:
Plastic Packaging is expected to Witness Significant Growth
- When it comes to efficient packaging, plastics often enable manufacturers to ship more products with less packaging material. This process of light-weighting can play an essential role in boosting the environmental and economic efficiency of consumer product packaging. Moreover, blister packaging is ideal for small consumer electronic goods. This type of plastic packaging highlights the electronic accessories and further provides a degree of tamper resistance, while still being convenient and easy to open.
- Many companies are developing new products to cater to the e-commerce market in the region. For instance, in January 2020, the US-based Sealed Air Corporation launched a new version of Bubble Wrap brand packaging material that is made with at least 90% recycled content. In January 2020, Coveris launched 100% PP structure shrink films that support the circular economy by minimizing material waste. Moreover, the Better Packaging Co. produces bags and envelopes made from renewable plant materials, which can be composted at home.
- As consumers are becoming more familiar with the environmental impacts of packaging and waste, it is becoming critical for brands to reflect their concern for this issue. Millennials make up a good portion of the industry鈥檚 consumer base, and they are showing a preference for purchasing from companies that focus on sustainability.
- As a result, the e-commerce companies in the region, such as Amazon, are adopting sustainable way of packaging by introducing various initiatives. Over the past decade, Amazon鈥檚 initiatives, including Frustration-Free Packaging (FFP), eliminated more than 810,000 metric ton of packaging material and eliminated the use of 1.4 billion shipping boxes, by promoting easy-to-open, recyclable packaging and shipping products. The increasing emphasis on FPP might hinder the market for lasting packaging in the future.
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Consumer Electronics Segment to Witness Significant Growth
- According to the Consumer Technology Association, the retail revenue from consumer electronics/technology sales in the United States in 2019 was USD 406 million, and it is expected to reach USD 422 million by the end of FY 2020. With the increasing demand for consumer electronics worldwide, the demand for protective plastic packaging is expected to increase during the forecast period.
- Among the specialized plastic packaging systems for consumer electronics and media, shrink packaging or shrink wrapping and stretch wrapping are very common and widely used. Compared to shrink film and bags, stretch wrapping offers large energy-savings and does not require the availability of fuel. Compared to shrink bags, in particular, it simplifies inventory. Additionally, several mobile phones are packed and shipped using plastic material. Though several manufacturers are drifting toward sustainable packaging options, the role of plastic films and wraps on the boxes is ever-growing.
- For instance, the Mavic Air 2 drone that was launched in April 2020 is packaged with the smart controller and the smartphone display, in carton boxes that come with protective plastic shrink-wrap, to avoid damage during shipping.
- Moreover, Kingston's HyperX Savage EXO, which was launched in 2019, is packaged between layers of clear blister-pack inserted in the box. The plastic, screwless, slate-gray case protects the drive's internals.
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