Grand View Research, Inc. claimed in a recent study that the e-commerce packaging market is expected to grow by 16.9 percent to USD 235.8 billion by 2030. It is estimated to grow worldwide as e-commerce retail business is rising rapidly with support from platforms like Shopify.
Technological advancements in the e-commerce sector and 5G internet has provided merchants with a wider scope to sell products online. Recently, Shopify also launched Shopify Markets Pro and Shopify Translate & Adapt to allow merchants to online sell their products to anyone across the globe.
Why is Packaging Important?
With rising demand, merchants wish convenient and efficient packaging options that prevent their products from damaging and comes at a lower cost. Shoppers also like convenient packaging to avoid the hassle of returning products, which otherwise could get damaged in commute.
The recent introduction of 5G internet will now improve the consumer experience. Many of the merchants use advanced technologies such as Augmented and Virtual Reality (AR/VR) for a better customer experience. With AR/VR option, customers can see product in an enhanced virtual environment to know more about its outlook.
Other Insights From Research
The research also found that corrugated boxes market might witness the fastest compound annual growth rate from 2022 to 2030. Both buyers and sellers are looking for sustainable packaging that leave less of carbon footprint. Trade activities are rising, and merchants rely heavily on packaging for affordable and safe transportation, handling and delivery.
Plastic dependency has reduced for good in the last one year. In 2021, plastic was excessively used in packaging due to low cost, lower weight and easy availability. Plastic also protected products from environmental factors like sunlight, water and air. However, shoppers’ preferences are changing with time and they now opt sustainable packaging.
The Canadian e-commerce platform is also helping create a sustainable environment. On its website, Shopify states: “it brings merchants, customers, and climate entrepreneurs together in the fight against climate change”.
ALSO READ: This is How Shopify is Making Earth a Better Place to Live
Shopify constantly works to empower a sustainable commerce by helping Shopify merchants neutralise shipping emissions. For this, Shopify has partnered with experts to develop high-leverage projects like Shop Pay. Explaining how it works, the website states: “Every time a customer places an order using Shop Pay, Shopify funds carbon removal to counteract the impact on the planet at no extra cost”.
In its bid against carbon, Shopify has pledged to purchase carbon removal during the Black Friday Cyber Monday (BFCM) to reduce shipping emissions from every single order placed during the busiest shopping season. In the last two years, Shopify had offset a total of over 120,000 tonnes of carbon.
Fashion Future
Something that has not changed in the last one year is online shopping in the fashion segment. While it dominated in 2021, apparel & accessories segment is expected to grow further at a steady compound annual growth rate by 2030. Globally, most of the fashion buyers were from the Asia Pacific region in 2021. The research termed better internet, rising e-commerce technology and increased consumers’ income as factors behind this shopping behavior.
“E-Commerce Packaging Market Size, Share & Trends Analysis Report By Product (Poly Bags, Mailers), By Material (Plastics, Corrugated Boards), By Application (Household, Pet Food), By Region, And Segment Forecasts, 2022 – 2030,” reads the topics covered in 144-page market research.
AR is The Future
Grand View Research also studied data from Shopify and found that more than 50 percent consumers want an AR experience to shop more online. These consumers were happy with the introduction of 5G technology, which would ultimately improve the online shopping experience. Internet connectivity has also expanded geographically, which comes as another reason of boost in the e-commerce sector.
The only challenge faced by the industry include low internet connectivity in rural or remote parts of the world. From India, Shopify is tapping into the rural regions with much ease. In October, Bharati Balakrishnan, Director and Country Head – India at Shopify, told Free Press Journal that Shopify is helping its merchant partners to adapt to technology.
“With social commerce now expected to have 228 million native consumers by the end of 2022, a 45% jump from 2021 as shoppers discover newer ways of buying goods online through YouTube, WhatsApp, Facebook and Instagram. As the Indian population becomes more digitally connected, especially in the untapped Tier II and Tier III cities and rural India, the social commerce market in India is expected to skyrocket,” she said.
Waste Management
With wider internet connectivity across the globe, e-commerce has come with immense opportunities for merchants. However, it comes at the cost of packaging waste and various environmental concerns. Even after merchants use cardboard boxes in place of cardboard boxes for packaging, around three billion trees are cut every year. These trees are used to make carton boxes, paper packaging, mailers and fillers.
Among those who use plastic for packaging, only 20 percent packaging material undergoes recycling. Such hazards to environment are expected to slow down market growth.
Market Trend
The research also observed that companies with strategies to acquire, expand and launch new products are growing rapidly. For success, merchants must develop manufacturing capabilities, create product portfolios and register geographical presence. In May, Berry Global partnered with Clean Farms & Poly-Ag Recycling to produce new carry bags by recycling used agricultural films and grain bag. In July 2022, Coveris produced 30 percent of recycled content with stretch films.
Shopify is also helping processing company, Heirloom, accelerate permanent carbon removal with its Sustainability Fund. In 2021, Sustainability Fund was used to buy 400 tons of stored carbon from Heirloom. Heirloom works on technology to accelerate carbon mineralization, a natural process to turn carbon dioxide into stone by binging the gas with minerals. The process takes years to complete, though Heirloom is trying to develop technology to complete carbon mineralization within days.
“Since our purchase, they’ve dramatically improved the rate that they’re able to demonstrate carbon capture using limestone, and that enabled them to unlock their latest Series A funding round, where they managed to pull together $53 million,” Stacy Kauk, Shopify’s head of sustainability, said as quoted by fortune.com.
Canada’s Packaging Market
In Canada, situation seems to be a little worrisome. The global research found that Canada Plastic Packaging Market will reach USD 13.76 billion by 2030. It is 3.8 percent from the current consumption. Demand for plastic is rising because it allows convenient and efficient packaging.
Another segment — Canada Multilayer Flexible Packaging Market — is expected to grow by 2.5 percent to reach USD 3.31 billion by 2030. This is getting popular in Canada for packed food packaging. It helps in preservation and leaves less of carbon footprint.
In sustainable packaging, another segment gaining popularity in Canada includes — Molded Pulp Packaging Market. It is expected to grow by 7.4 percent to reach USD 9.11 billion by 2030. This packaging is completely environment friendly as it leaves no carbon foot print.
Shopify’s Intent
Shopify is doing its best to create a sustainable environment. On its website, Shopify writes it “brings merchants, customers, and climate entrepreneurs together in the fight against climate change”. It helps Shopify merchants neutralise shipping emissions with a free application called Planet—Carbon‑neutral shipping. “Planet automatically calculates your shipping emissions, and ensures high-quality carbon removal to neutralize your shipping footprint,” it explains the app functionality on Shopify App Store.
Another high-leverage project for environment includes Shop Pay. Explaining how it works, Shopify states: “Every time a customer places an order using Shop Pay, Shopify funds carbon removal to counteract the impact on the planet at no extra cost”.
