As more and more consumers are opting for e-retail services over regular brick-and-mortar retailers as the primary way of buying products, the Indian e-commerce market is steadily expanding, and so is the need for product packaging.
Some of the key factors that might play a seminal role in shaping the e-commerce packaging market include not only the increase in popularity of e-retail across South Asia and the Indian subcontinent, but also, more mobile phone users, cheap and fast broadband, and the growth of m-commerce.
The corrugated packaging industry in the Indian subcontinent has gone through a massive upheaval due to its association with the booming e-commerce industry and vendors seek to deliver more innovative, convenient and higher quality of product packaging to keep up with the competition.
Online Retail – Packaging & Shipping
With millennials forming a major chunk of the consumer-base, vendors need to adapt to their changing mindset and demands. Another contributing factor in the growth of e-commerce in the Indian subcontinent is the improved standard of living in the metros, and online shopping becoming a trend among the millennials.
With the fast-paced and hectic lifestyles of today’s consumers, they would much rather have products delivered to them on their doorsteps without having to do much except placing the order. From groceries to vegetables, from shoes to make-up to books and stationery, everything is now available online.
Logistics and International Shipping
India is one of the fastest growing online retail markets, and as a result, the corrugated packaging industry here is also one of the fastest growing. The primary reason for the growth in online retail in India is due to the increase in mobile phone usage, and of course, the affordability and availability of high-speed internet.
Due to the rising demands, we have new online retail platforms opening in India every other day, while also providing an avenue for foreign e-retail platforms to open in India and the Indian subcontinent. In both the cases, the products need to be packaged properly before dispatch. The demand for corrugated packaging is higher now than ever before.
Improved Packaging Standards
The bulk of packaging required has also increased because of changing trends in packaging. Back in the day, products were packed in a single layer of folding carton, but now the standard is of having at least two layers of corrugated packaging.
Consumers in India, Bangladesh, and the rest of the subcontinent, exhibit a preference for highly secure and tamper-free packaging for products ordered via e-retail platforms. Premium quality is also expected, and the demand for corrugated packaging shows a specific interest in higher quality materials, innovative designs and more features.
Eco-friendly Packaging Options
Environmental awareness has also led to an increase in demand for cellulose-based corrugated packaging material. There is also a very high demand for tamper-proof courier bags, even for domestic orders. With a predicted value of more than USD 6 million in 2021, the packaging industry in India itself is expected to grow at a CAGR of 5.5%.
Eco-friendly and responsibly-sourced packaging materials for their products is in vogue due to the rise in environmental concerns, thus also helping the industry grow. Apart from that, there is also a predicted demand for personalized packaging that can be customized according to the consumer’s preferences. The online retail market in India and the subcontinent is growing at an incredible rate, and it’ll just keep expanding in the years to come.
The demand for packaging materials is directly proportional to the growth of the logistics, delivery and online retail industry and we can see how there a massive upheaval in the industry has been as well. Adapting to the needs and demands of the changing times, the corrugated packaging industry has been transformed in the Indian Subcontinent and is estimated to continue to do so.