India's E-Commerce Packaging Industry, 2020-2025 - Growing Proliferation of Online Retailing and Emergence of Omnichannel Presence
DUBLIN, March 19, 2020 /PRNewswire/ -- The "India E-Commerce Packaging Market - Growth, Trends and Forecasts (2020-2025)" report has been added to ResearchAndMarkets.com's offering.
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The Indian e-commerce packaging market was valued at USD 451.4 million in 2019, and it is expected to reach USD 975.4 million by 2025, registering a CAGR of 13.8% during the period of 2020-2025.
Owing to the rising population, increasing income levels, changing lifestyles, and growing economy, the demand for e-commerce packaging is growing in India. The country is focusing more on sustainable solutions, which is increasingly becoming a business imperative. With the growing awareness, the requirement for eco-friendly and sustainable packaging is steadily on the rise. With several billion parcels delivered every year, the threat of packaging waste is increasing due to which, the need for recyclable packaging material is on the rise.
Key Highlights
-- The growing proliferation of online retailing and the emergence of
omnichannel presence drives the market. With the increase in the usage
of the internet across the country, the penetration of online retailing
is growing. According to IBEF, internet users in India are expected to
increase from 665.31 million, as of June 2019, to 829 million by 2021.
-- Furthermore, with rise of the omnichannel business model in the country,
where one can shop both online and offline, has also boosted the
e-commerce market. Omnichannel retailers, such as Shoppers Stop Ltd and
Infiniti Retail Limited Croma, are experiencing growth in their sales.
Moreover, they are providing faster delivery with lower shipping cost of
packaging, as they can ensure delivery from their offline stores in the
city.
-- However, regulation pertaining to the use of plastic and lack of
exposure to good manufacturing practices is challenging the market
growth. The growth of plastic packaging in the e-commerce space is
expected to be affected by the recent regulation on the ban of
single-use plastics, which is expected to be enforced anytime in the
future, once the discussion with all stakeholders concludes. The other
factor that is affecting the growth of the e-commerce packaging industry
in India is the lack of a packaging machinery manufacturing ecosystem in
the country.
Major Market Trends
Fashion & Apparel to Witness Significant Market Growth
-- With media exposure, raising awareness, and increasing share of
disposable income, Indian consumers are looking to get access to global
fashion brands. The limited reach of brick and mortar retail outlets of
brands in smaller cities provides an opportunity for online retailers.
-- Corrugated boxes are very common and widely used packaging materials for
the e-commerce industry in the apparel segment, as the material is very
strong and highly durable
-- For instance, Arihant Agencies provides a corrugated box (outer brown
box) for the apparel sector in an e-commerce platform, which keeps the
product safe and secure while storing and shipping. This secondary
packaging is available in different sizes, styles, and with different
specifications to choose from.
-- Further, consumers are demanding more sustainable fashion products.
Thus, brands have to imbibe this concept strongly in their business
approaches, as the plastic used in packaging has no particular
sustainable alternative that has been identified.
-- In November 2019, the Walmart-owned e-commerce marketplace, Flipkart,
rolled out a new initiative that focuses on creating awareness among
consumers on the proper disposal of plastic packaging to make them
active participants in its sustainability agenda. As part of this
initiative, Flipkart is conducting a pilot project to collect plastic
packaging back from consumers at select hubs across Mumbai, Bengaluru,
Dehradun, Delhi, Kolkata, Pune, and Ahmedabad. This initiatives
contributed to the growth of market.
Consumer Electronics Will Account for Significant Market Share
-- According to IBEF, consumer electronics is currently the biggest
contributor to online retail sales in India. In 2018 it contributed a
share of 48% in India.
-- Protective airbags for sending mobile phones, accessories, boxes, etc.
are widely used in the e-commerce segment, as these bags help protect
goods from damages during transit. Companies, such as Vijay Packaging
System, provide these types of packaging for the e-commerce segment.
-- Further, EPS (expanded polystyrene) foam is widely used to protect and
save electronic products during shipping. It helps fill the void spaces
and offer other properties, like durability, recyclability, and
lightweight. The products mostly used for packaging include televisions,
bulbs, and other electrical appliances.
-- Many e-commerce companies are focusing on sustainable packaging
solutions to reduce plastic waste and move toward paper-based packaging.
The trend is also expected to hit the consumer electronics segment,
which is sensitive to external impacts, with better designing, in order
to make packaging more robust.
-- For instance, the e-commerce giant, Amazon, introduced the
Frustration-Free Packaging solution to eliminate the additional shipping
boxes. By December 2017, the company had avoided 360 million shipping
boxes. Also according to Amazon, electronic accessories, gadgets, and
smartphones are the top categories in the most-selling products, so it
enhances the usage of packaging such as Tuck-in-Flap boxes, protective
bags, etc.
Competitive Landscape
The Indian e-commerce packaging market is fragmented which provides rivalry in the market. Sustainable competitive advantage can be gained through innovation in design, technology, and application. The growing demand from the fashion and apparel and consumer electronics industries has led to the introduction of several innovations which provides the high competitive position of the market. Key players are Packman Packaging, Oji India Packaging Pvt Ltd, etc.
Soem recent developments in the market are:
-- Aug 2019 - B&B Triplewall Containers opted for Corrugated Samadhan, an
ERP solution specially designed for the corrugation industry. The
Samadhan uses ERP framework Microsoft Dynamics NAV to create a solution,
where the solution is sturdy, secure and scalable.
-- Dec 2019 - Storopack developed rEPS, a new material that includes 100%
recycled ESP or PS from post-consumer good. The product is anticipated
to be used for packaging material in future. It's an attractive solution
for companies that wish to use eco-friendly packages.
Key Topics Covered
1 INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Growing Proliferation of Online Retailing and Emergence of Omnichannel Presence
4.4 Market Restraints
4.4.1 Regulation Pertaining to the Use of Plastic and Lack of Exposure to Good Manufacturing Practices
4.5 Industry Attractiveness Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Type
5.1.1 Boxes
5.1.2 Protective Packaging
5.1.3 Other Types of Packaging
5.2 By End-user Industry
5.2.1 Fashion and Apparel
5.2.2 Consumer Electronics
5.2.3 Food and Beverage
5.2.4 Personal Care Products
5.2.5 Other End-user Industries
6 COMPETITIVE LANDSCAPE
6.1 Key Vendor Profiles
6.1.1 Packman Packaging
6.1.2 U-Pack
6.1.3 Ecom Packaging
6.1.4 Avon Pacfo Services L.L.P.
6.1.5 TGI Packaging Pvt. Ltd.
6.1.6 Kapco Packaging
6.1.7 Total Pack
6.1.8 Storopack Ind. Pvt. Ltd.
6.1.9 Oji India Packaging Pvt. Ltd.
6.1.10 Astron Packaging Ltd.
6.1.11 B&B Triplewall Containers Limited
7 THE FUTURE OF THE MARKET
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