Insights eCommerce

How sales have increased for the Packaging industry

Christmas is around the corner and the annual rush of everyone buying enough food, drink, and the main thing, presents to have a successful season is underway.

However, this year it is all different, there will not be as many consumers wading through shopping centres. Most will more than likely be spending this festive season in the comfort of their own home doing online shopping.

While a large amount of physical stores and retailers without a digital presence have felt a hard impact due to COVID-19 restrictions throughout 2020, there is one area of the industry that is flying high in the online shopping, this is the packaging sector, especially materials such as cardboard and paper packaging.

According to a report written by Smithers Pira, packaging from the eCommerce sector has had an incredible increase and in 2020, the global consumption of online order packaging has increased 40% higher than in 2019.

The eCommerce sector is one of the most important markets for companies and suppliers that provide the materials for packaging. It is estimated that by 2025 the market will be valued at $113.5 billion!!

Consumer Preference and Material Sustainability

The success of cardboard has come from its sustainability of the raw material and consumer preference for its environmentally friendly packaging. Smurfit Kappa released a new study and found that consumers have a new demand of more sustainable packaging from fashion brands.

The study took place in the UK, Germany, Ireland and The Netherlands, and it found that 41% of online fashion shoppers have become more eco-conscious when purchasing, this occurred at the start of the COVID-19 pandemic, having 35% people stating they wouldn’t buy from a brand if they found out that their packaging wasn’t sustainable.

The Success of Cardboard

The success of cardboard as you may have gathered is from is vital benefit of being re-useable, being able to recirculate it numerous times, with it comprising 50% recycled material, with some going all the way to 100%. To make it even more successful, the online shopping market is still on a rapid increase, meaning there should be no shortage of cardboard in the system for a very long time.

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