
The “U.S. e-Commerce Ready Packaging Market 2024-2033” report, now available on ResearchAndMarkets.com, provides an in-depth analysis of the growing e-commerce packaging industry. It includes historical demand data for packaging and merchandise sales from 2013, 2018, and 2023, as well as forecasts for 2028 and 2033. The report categorizes the market by product types such as boxes, mailers, protective packaging, and others, and analyzes various sectors, including electronics, apparel, home goods, food & beverages, and health & beauty.
The e-commerce industry has significantly reshaped packaging demands, transitioning from traditional retail models to online shopping and direct-to-consumer deliveries. This shift is influencing supply chains, logistics, and operational strategies across the board.
Retail e-commerce sales are expected to grow at an 8.9% annual rate, reaching $1.4 trillion by 2028, though this is a slower pace compared to pandemic-era levels. Despite the slowdown, the expansion of home delivery is altering the types and amount of packaging used, with sustainability concerns becoming a critical focus.
Sustainability and Environmental Impact
As e-commerce continues to grow, so does its environmental footprint, particularly in terms of packaging waste and carbon emissions from shipping. Retailers, manufacturers, and logistics companies are increasingly adopting sustainable packaging practices to reduce waste, optimize shipping materials, and develop eco-friendly options.
Demand for traditional packaging, such as shipping boxes and mailers, is projected to grow by 6.4% annually, reaching $8.5 billion by 2028. However, there is a concerted effort to minimize packaging waste and reduce material use in e-commerce shipping.
E-Commerce Ready Packaging (SIOC/SIPP)
A major trend in the industry is the shift towards E-commerce Ready Packaging (Ships in Own Container, SIOC, or SIPP). This approach addresses both environmental and cost concerns by eliminating excess packaging and improving supply chain efficiency. Industry giants like Amazon and Alibaba are leading this movement, urging suppliers to comply with their packaging standards.
SIOC shipments are expected to grow substantially, with projections indicating a rise to 6 billion units by 2028. This shift marks a move away from traditional packaging methods and is driven by a desire to reduce packaging waste and improve profitability.
Factors Shaping Packaging Demand
E-commerce packaging demand is influenced by several factors, including:
- The growth of U.S. retail sales, consumer income levels, and economic conditions.
- Increasing online shopping and the variety of products purchased online.
- Heightened concerns about packaging waste, with efforts to improve recycling and reduce environmental impact.
- Policy changes by major retailers regarding packaging practices.
The COVID-19 pandemic accelerated the shift to online shopping, but some consumers have since returned to in-store shopping. Factors such as supporting local businesses, reducing packaging waste, and the environmental impact of shipping are influencing consumer preferences.
U.S. Parcel Shipping Industry
In 2023, the U.S. parcel shipping industry shipped 21.5 billion packages. The industry grew rapidly during the pandemic but has since seen a slowdown. Major players like USPS, UPS, and FedEx dominate the market, although Amazon has emerged as a significant player, controlling about 28% of the market in 2023.
E-Commerce Spending Trends
Across generations, consumers are increasingly comfortable making large online purchases. Around 27% of shoppers across all age groups spent $1,000 or more online in the previous six months, reflecting the growing trust in online shopping and the value of convenience and competitive pricing.
In conclusion, the report highlights the dynamic changes in e-commerce packaging, driven by sustainability concerns, cost-saving initiatives, and evolving consumer behaviors. These factors are reshaping the packaging landscape, with increased demand for eco-friendly, efficient, and cost-effective packaging solutions.