How is flexible packaging shaping the e-commerce sector?

 The surge in e-commerce is a key driver reshaping the flexible packaging market. The growth of online shopping, specifically post-COVID-19, has dramatically augmented the requirement for lightweight and durable packaging solutions. E-commerce sales in the U.S. reached about US$ 215 billion in the first quarter of 2021 alone.

This upswing is not just a short-term spike; projections indicate a sustained growth trend, with the e-commerce sector anticipated to expand in the future. In addition to this, according to the research report of Astute Analytica, the US flexible packaging market is growing at a compound annual growth rate (CAGR) of 9.41% during the forecast period from 2024 to 2032.

The role of flexible packaging in e-commerce is: -

Flexible packaging, with its durability and lightweight nature, has become a favored choice for online retailers. This choice is further supported by the fact that flexible packaging can lower shipping costs by up to 70%, compared to more rigid options.

The growth of e-commerce has also led to an expansion in demand for customized packaging solutions. About 30% of businesses have reported an uptick in customer choice for personalized packaging. Also, the flexible packaging industry has witnessed a 15% boost in demand for innovative designs, as brands aim to stand out in a crowded online marketplace.

• Shipping Rates – In addition to lowering package weight for lower shipping costs, sellers can also utilize flexible, space-efficient containers to maintain rates low. Using pouches and other flexible packing options allows packaging companies to minimize airspace in shipments, resulting in lower freight charges for end-users.

• Product Protection – It is thought goods sold online are managed at least three times more often than items sold via conventional retail outlets. Whereas glass and similar packing materials offer shipping challenges, flexible packaging delivers inherent protection, beyond conventional packing techniques once developed almost exclusively for retail stores. Flexible packaging is customizable, allowing users to incorporate appropriate layers of protection for powders, liquids, and a diverse selection of food items. The added durability decreases breakage as well as inhibiting spills.

• Environmental Impact – As the number of direct-to-consumer shipments boosts, shippers continue aiming for ways to decrease the amount of material in the distribution stream. To that durable, end, flexible packaging affords opportunities to lower the amount of material comprising outer packaging, often stopping a layer of cardboard or overbox. By omitting ridged material once required for improved product protection, flexible pouches can help decrease the overall footprint of each shipment. In many cases, a flexible packaging solution decreases fossil fuel usage and greenhouse gas production compared to shipping with a cardboard overbox. And well-designed flexible packing solutions also streamline returns without generating additional packaging material for the return trip.

In Conclusion

The pressure to design sustainable solutions that do more with less and can contribute to a circular economy will continue and deepen over time. The collaborative efforts of the value chain in harnessing the strength of these three technology focus areas will play a critical role in the development of creative solutions that offer sustainability advantages that meet growing brand owner commitments, consumer expectations, and regulatory differences.