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E-commerce creates global opportunity for packaging machinery and materials

Originally posted 12/20/2018

Asia is leading the world with 47.4 percent of the e-commerce packaging market, compared to North America in the number-two spot with 25 percent.

In the U.S., clothing, accessories and footwear is the largest category in electronic shopping sales. Drugs, health aids and beauty products is the 5th largest category, with food, beer, wine coming in 12th.

All these facts are compiled and available in a new report from PMMI Business Intelligence, “E-Commerce 2018: Think Inside the Box.”

The study looks at the impact of e-commerce growth on CPGs, 3PLs and Packaging OEMs. While industries such as electronics and apparel are well established in the e-commerce market, there are several niche product categories that are predicted to experience a significant expansion in online business.

The grocery industry in particular is poised to see a burst of growth in the next decade. Currently, online grocery orders are estimated to make up between 2% and 4% of the entire grocery industry, but that number is expected to swell to nearly 20% by 2025.

There is no doubt that e-commerce growth is driving packaging machinery and materials sales growth. The report found that 60% of respondents are increasing purchases of machinery specifically for e-commerce. Machinery purchases will include equipment for secondary packaging, warehouse handling, marking and coding, primary packaging, and vision/sensors.

Corrugated has the largest share of the e-commerce packaging materials market, with a commanding 80% of market share. Flexible films capture 15% of the materials market, followed by protective packaging components such as air pillows bubble wrap, paper fill and loose fill combined for 3.5%.

For more information on how e-commerce is impacting CPGs, 3PLs and packaging OEMs, download the FREE Executive Summary below. PMMI members can access entire 56-page report here.

To see all ten articles in this series, click here.

Make plans to visit PACK EXPO Las Vegas, September 23-25, for machinery and materials to tackle your e-commerce and omnichannel challenges.

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