Korea E-commerce Packaging Market - Industry Trends and Forecast to 2029

Korea E-commerce Packaging Market, By Product (Boxes, Protective Packaging, Security Envelopes, Tapes and Labels, Packets, Bubble Wraps, Others), Materials (Glass, Paper, Wood, Plastic, Metal, Others), Printing Technology (Flexo Printing, Digital Printing, Litho Laminate Printing, Offset Lithography, Digital Printing, Others), Application (Electronics and Consumer Goods, Apparel and Accessories, Cosmetic, Home Care and Personal Care, Food and Beverages, Home Furnishing, Auto Parts, Healthcare, Recreation Goods, Others), End-User (Traditional E-Commerce Retailers, Third Party and Logistics Companies, Brick and Mortar Retailers, Specialty Retailers, Others) Industry Trends and Forecast to 2029

Market Analysis and Size

Packaging has developed a platform allowing companies to take advantage of their e-commerce products. The company also established a means of explicitly printing on big or tiny corrugated plates. This eliminates the need for printing lithographic labels and saves time and cost. It is eco-friendly, and according to the service, direct printing on board is recyclable. With this order and distribution system, more and more users, templates can be changed easily, and great potential in third party ads on e-commerce packaging. The more lavish the object is shipped, the more surprising the exterior becomes. This is achieved to provide no hint as to the worth of the package to ensure protection and prevent pilfering. For such instances, there are still beautifully written graphics inside the packet, which will only be disclosed if the package is opened.

Shifting shopping preference towards online due to convenience and the growing popularity of smart packaging are some of the drivers expected to boost E-commerce packaging demand in the market. Data Bridge Market Research analyses that the E-commerce packaging market is expected to reach the value of USD 6,555.54 million by the year 2029, at a CAGR of 15.2% during the forecast period. "boxes" accounts for the most prominent product segment in the respective market owing to rise in the demand of E-commerce packaging. The market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and climate chain scenario.

Market Definition

E-commerce packaging is an essential part of branding. The first natural contact customer with a particular brand often handles the package delivered to him when shopping online. This is a rare opportunity for companies to create a good impact and strengthen or ruin their brand image. Due to broken or poor quality packaging, Premium packaging can increase customers' loyalty. Even stronger by recent third-party online retailers advertise on their products. Industry professionals anticipate other retail stores and distribution companies to adopt this model. Packaging will boost revenue and incorporate innovative forms of cross-branding and marketing.

Regulatory Framework

South Korea’s Ministry of Food and Drug Safety (MFDS) has issued a notice containing the latest national requirements for food contact materials (FCMs). Issued within the country’s “Standards and Specifications for Utensils, Containers and Packaging,” the notice sets out a range of updates, including:

• Adding polyketones as an additional raw material
• Grouping of synthetic resins that have similar structures into a set of nine categories
• Presenting specifications for each material type (including synthetic resins, rubber, paper, metals, glass, ceramics, and others) in the form of a table
• Adding new requirements for active and intelligent packaging
• Introducing new regulations on the use of recycled synthetic resins, including updated standards for recycled polyethylene terephthalate (PET).

COVID-19 had a Minimal Impact on E-commerce packaging Market

COVID-19 pandemic caused a sudden lockdown in many parts of the world to prevent the spread of the virus, which resulted in rapid closing down of factories, shops, and others. The rapid decline of demand and supply and travel bans led to the downfall of the non-essential product's market globally. The pandemic has made a significant negative impact on the economy due to less demand, shortage of employees in the factory, also travelling ban led to a shortage of raw materials, thus stopping the production of E-commerce packaging products. However, with the lockdown being relaxed and vaccination drives happening in Korea, the workflow has started increasing, thus, helping the market players to make a comeback. Government’s regulations and support regarding the growth in the economy and rising start-ups are expected to surge the valuation of Korea e-commerce packaging market during the forecast period. The demand for E-commerce packaging was rising during the pandemic owing to increased online shopping, but supply chain disruption hampered the growth up to some extent.

The Market Dynamics of the E-Commerce Packaging Market Include:

Drivers/Opportunities in the E-Commerce Packaging Market

• Growing demand for sustainable packaging solutions

The concept of sustainable packaging has grown with the growing inclusion of sustainable development concepts at various levels in industrial and institutional platforms. Emitting chemical materials, waste, air, soil and water quality degradation, climate change, and other current problems negatively affect the packaging industry.

• Rising demand for secondary packaging and protective packaging for electronic goods

As e-commerce shifts from an existing distribution network to a fragmented customer network, a modern system of initiatives is being created to provide direct fulfillment to satisfy different criteria. As these transformations are better understood, developing responsive strategies will improve. Making sure that unintended impacts are avoided remains essential. To this, communication and coordination around the supply chain are important. By collaborating, the industry can take advantage of this opportunity to integrate sustainability into supply chains much earlier in its development.

• Growing popularity of smart packaging

Consumers expect intelligent opening and packages that can be easily opened without using tools. A strip of tear is preferred, and the package should be opened. The goods should be well delivered, preferably with a personal touch, which transmits the impression that someone particularly packs the package for them. Articles shall arrive in perfection without excessive filling material or space, as they are well protected. This is particularly important as consumers are looking to find sustainable solutions when it comes to products and packaging.

• COVID-19 pandemic increased dependency on grocery shopping to e-commerce

Contradictory to anything the world has ever seen in the COVID-19 crisis, the countries, institutions and business leaders face difficult choices with unprecedented uncertainty levels. In the short term, orientation is crucial, that the crisis becomes clearer and the social and economic order will constantly shape as for many recent disasters, the future has become the situation. Society trends are changing rapidly as we work, learn, shop and use technology. While these developments have already formed before the crisis, we see an escalation contributing to a new normal crisis. Although a short-term reaction is important to live, the winners will be taken in the long run.

Restraints/Challenges faced by the E-Commerce Packaging Market

• Increasing packaging cost for e-commerce companies reduced their bottom line

Consumers get a lot better aware of their impact, and they want to buy decisions about just what their companies want to do to offset their operations' impact. However, this is necessary for you to consider when doing so the triggers of the rise in average packaging prices and the different aspects in which they can be offset. It is important to take advantage of the available value-added services, make the packaging function harder, ensure optimal quality, and take advantage of acceptable value-added services.

• Greater technological understanding than required for other packaging forms

Technology has proven to be a general-purpose tool that has been embedded and integral in the market models of companies that work around the industry because the tool becomes innovative, and the cost of technology continues to decline. Enterprises in all sectors will now plan and develop their business models in compliance with the technical capability to boost competitiveness and productivity and meet global markets. Benut zing advances in communication and processing capacities, transaction costs have been reduced, and their reach has expanded to global markets for enterprises across all sectors.

Recent Developments

• In April 2022, Amcor Rigid Packaging (ARP) and Danone launched a 100% recyclable bottle for the Villavicencio water brand. It is made from 100% recycled content and has a reduced carbon footprint of 21% compared to the old bottle. This development will attract new customers who are in search of innovative products.

Korea E-commerce packaging Market Scope

The E-commerce packaging market is segmented based on product, materials, printing technology, application and end-user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product

• Boxes
• Protective Packaging
• Tapes And Labels
• Bubble Wrap
• Security Envelopes
• Packets
• Others

Based on product, the Korea E-commerce packaging market is segmented into boxes, protective packaging, security envelopes, tapes and labels, packets, bubblewrap, and others. The boxes segment is expected to dominate the Korea E-commerce packaging market as they are considered the most stable base for the packaging.

Materials

• Plastic
• Paper
• Wood
• Metal
• Glass

Based on materials, the Korea e-commerce packaging market is segmented into glass, paper, wood, plastic, metal, and others.

Printing Technology

• Flexo Printing
• Digital Printing
• Litho Laminate Printing
• Offset Lithography
• Others

Based on printing technology, the Korea e-commerce packaging market is segmented into flexo printing, digital printing, litho laminate printing, offset lithography, digital printing, and others.

Application

• Electronics and Consumer Goods
• Apparel and Accessories
• Cosmetic, Home Care and Personal Care
• Food and Beverages
• Home Furnishing
• Auto Parts
• Healthcare
• Recreation Goods
• Others

Based on application, the Korea e-commerce packaging market is segmented into electronics and consumer goods, apparel and accessories, cosmetic, home care and personal care, food and beverages, home furnishing, auto parts, healthcare, recreation goods, and others.

End-user

• Traditional E-Commerce Retailers
• Third Party and Logistics Companies
• Brick and Motar Retailers
• Specialty Retailers
• Others

Based on end-user, the Korea E-commerce packaging market is segmented into traditional e-commerce retailers, third party and logistics companies, brick and mortar retailers, specialty retailers, and others.

Competitive Landscape and E-commerce packaging Market Share Analysis

The E-commerce packaging market competitive landscape provides details by a competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to e-commerce packaging market.

Some of the major market players engaged in the Korea E-commerce packaging market are International Paper, NIPPON PAPER INDUSTRIES CO., LTD., Mondi, Amcor Plc, Sealed Air, Rengo Co., Ltd., AptarGroup, Inc., WestRock Company, Yamakoh, Co., Ltd., CHUOH PACK INDUSTRY CO., LTD., Holmen Iggesund, among others.