Traditional postal organizations are headed towards inexorable change. How they react to the era of digitization and the dynamic consumer behavior will determine their profit in the future.

While it is evident that commerce has fundamentally changed, only a handful has grasped its impact on reshaping retail competition and supply chain. Transparency Market Research’ (TMR’s) analysis projects that in the near future a significant section of ecommerce purchases will be delivered to their destinations via local inventory.

A key factor impelling this is consumer inclination for same-day delivery instead of waiting for standard shipping, which can take from three to five days to reach them. Last mile delivery has therefore emerged as a key differentiator.

There is no going back for retailers hence there is immense focus on reinventing delivery experience to suit consumer preferences. Post and parcel organizations are quickly responding to the ongoing changes by reinventing their packaging.

TMR projects the volume of parcel and packages demanded in the industry will stand at above 7 billion. Ecommerce boon witnessed in the last few years has been the agent of significant changes in the industry. It has compelled institutions to rethink postal packaging solutions to make it more sustainable and convenient.

global postal packaging market

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Demand to Pick Up in Response to Booming Online Sales

The demand for postal packaging is expected to rise significantly in the coming years. Thanks to rising online sales, the market is no longer dependent on traditional post organization, instead it is operating in a more dynamic environment.

Studies suggest that ecommerce express and parcel capacities have surged by more than 5% in the last couple of years. Coupled with this, new designs and cutting-back on paper use have been significantly driving the postal packaging market.

Novel technologies and changing consumer preference are causing monumental shifts in strategic priorities of postal packaging. Digital transformation has been impacting delivery and supply trends. Advent of cross-border ecommerce is further compelling postal organizations to improve their delivery experience.

Consequently, there is immense focus on new business models that will help these organizations to reduce cost incurred and realize growth. Many of them are pivoting towards advanced methods of packaging.

From simple yet practical bamboo plastic packaging to biodegradable cosmetic packaging, several trends have paved their way into the market, enabling growth since the last few years.   

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Convenience, Sustainability, Traceability, and Flexibility

Certain elements that consumers expect from postal packaging include convenience, sustainability, traceability, efficiency and flexibility and other associating parameters at a pocket-friendly cost.

Changing consumer preferences and advent of novel technologies are reasons behind tectonic shifts in strategic priorities of postal packaging. Digital transformation, as discussed, is a key driver and its impact in felt in deliveries, supply, and returns, impelling postal organizations to adopt novel methods of packaging.

The demand for more sustainable packaging is driving their efforts to minimize wastage and promote the use of eco-friendly materials. Industry veterans are stressing on the need for recyclable and robust packaging for the market to stay relevant.

Evidently, researches into green alternatives to single-use envelops and plastic shrunk wrap are picking up pace. Also market players are ramping up sustainable groceries packaging while trying to achieve the perfect balance between cost and convenience for consumers.

These trends are expected to leave a significant impact on the market, altering its dynamics to suit contemporary paradigms. The demand and supply forces can manifest into lucrative prospects, given the market players are quick to respond.

Some of the leading players have adopted value engineering to redesign packaging from the ground up with an aim of saving money. Biodegradable materials such as cardboard and paper, bubble wrap, which is made from recycled polyethene and is completely biodegradable, and corn starch are often used to produce these packages

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Waste Generated from Postal Packaging Poses Threat to Market

Postal packaging is widely used for packaging of various products. Despite gaining momentum, waste generated from postal packaging is inhibiting growth in the market. Additionally, improving digital connectivity is expected to restrain growth in the coming years.

According to recent studies, the number of global internet users grew to 3.9 billion in 2018. They represent nearly 51.2% of the global population. The rising penetration of the internet and faster broadband network have made digital content increasingly accessible to consumers.

Transporting physical letter by air, land, and sea is no longer a prevalent method, which has greatly hampered the growth of the postal industry. As a result, the market has been witnessing a drastic fall in the use of postal envelops.

Demand from Emerging Nations to Seal Asia Pacific’s Dominance

Asia Pacific currently holds the leading share in the postal packaging market. Certain pockets within the region still offers a conducive environment for growth of postal services. Consequently, the postal packaging market will record an impressive growth in Asia Pacific through the course of the forecast period.

With this, prospects for postal packaging also is expected to get better. A key point to consider here is that parcel logistics, from pickup to delivery, has emerged as a key growth enabler, considering that majority of ecommerce purchases are delivered via networks and not picked up from stores.

Spurred by these factors, growth will particularly be dynamic in the Asia Pacific market, wherein both market players and retailers are at the forefront of innovations witnessed in the postal services industry, eco-friendly packaging being one of them.

Also thanks to massive investment towards research and development activities by ecommerce giants, the postal packaging market in Asia is easily the most lucrative one in the world. For instance, Alibaba has already pledged to invest US$ 15 bn in technology and research between 2019 and 2021.

Spurred by increasing focus on product redesigning and sustainable packaging, the postal services market in Asia Pacific will rise at 7% CAGR between 2020 and 2028, finds TMR in its recent study.

Demand in Tyvek Segment Forecast to Rise

Among materials, the demand for sustainable packaging is skyrocketing in the market. TMR also has highlighted consumer preference for Tyvek in manufacturing of envelopes and other postal packages.

The material is cost effect, water resistant, and light weight, which significantly aids to its rising popularity. In the coming years the material-based segment comprising of Tyvek is expected to create a sizeable incremental opportunity.

However, the paper and paperboard segment will outpace other materials, accounting for the lion’s share of the market through the forecast period.

Digitization to be a Setback for Envelopes Segment

Based on packaging format, envelopes will remain the leading segment in the market through the course of the forecast period. It is expected to account for over one-third of the overall market share.

However, rapid digitization has caused a significant setback for envelop producers. The massively reducing demand for traditional letters, mails, and posts will dent sales proceeds in the segment, subsequently paving way for boxes and cartons to emerge at the fore.

The penetration of ecommerce and last mile delivery will result in higher demand for corrugated boxes. Emerging nations especially will record high demand for boxes and cartons.

Wraps too will gain significant traction in response to the increasing demand for protective packaging solutions.

Commercial Segment to Account for Majority Sales

The commercial or institutional segment is expected to account for the leading share in the market although in coming years the household sector will offer lucrative prospects.

The rapid emergence of ecommerce and digital revolution have been structurally altering consumer preference. As a result online deliveries are gaining pace at a massive rate.

The rising penetration of ecommerce channels in global businesses will fuel demand for postal packaging in the commercial segment.

Companies to Focus on Research and Development to Gain Competitive Advantage

Companies operating in the market are currently struggling to keep pace with rapidly changing dynamics. Most of them are capitalizing on parcel market growth to emerge as champions of tomorrow. The market today is increasingly competitive and companies operating in the postal packaging market must embark on research and development to accelerate necessary transformation.

None of the leading companies are leaving any stone unturned to gain better sustainability.

Smurfit Kappa Group for instance has invested in the expansion of its paper sack business in America, besides adopting product innovation as a key strategy to realize growth.

Postal Packaging Market – Scope of the Report

Transparency Market Research (TMR) started a new study on the global postal packaging market, providing forecast for the period of 2020-2028. In the study, growth opportunity for the postal packaging market is witnessed. The report provides valuable insights, which enable readers to make winning business decisions for future growth of their businesses. The report highlights significant factors that are constantly determining the growth of the postal packaging market, untapped opportunities for manufacturers, trends and developments, and other insights across various key segments. Macroeconomic factors that are directly or indirectly affecting market growth are also incorporated in the report.

Key Questions Answered in TMR’s Postal Packaging Market Report

  • What will be the impact of COVID 2019 on postal packaging market?
  • Which end users will be the most lucrative for postal packaging?
  • What will be market size for postal packaging by the end of 2028?
  • Which is the most preferred capacity for postal packaging in the global market?
  • Which region will remain most lucrative for market growth?
  • Which are the top five countries of postal packaging market?
  • Which material holds maximum market share in the global postal packaging market?
  • Who are major key players in the postal packaging market?

Key indicators associated with the postal packaging market have been calculated thoroughly in the report. The study enumerates vital market dynamics such as key drivers, challenges, and trends, along with opportunities in the global postal packaging market. A comprehensive study on the value chain, which includes component suppliers, manufacturers, distributors, and end users have been incorporated in the global market report. Other key aspects laid down in the market include pricing strategy of leading market players and comparative analysis of postal packaging. Furthermore, forecast factors and forecast scenarios of the postal packaging market have been covered in the report to understand future prospects of the market.

A comprehensive evaluation and forecast on the postal packaging market are provided on the basis of capacity, material, end users and region.

Y-o-Y growth comparison, volume and revenue comparison, and market share comparison of various market segments have been provided in the report. The postal packaging market has been analyzed at both regional and country levels.

The report delivers an exhaustive assessment on the structure of the postal packaging market, in tandem with the dashboard view of all leading company profiles in the report. Every company’s share analysis on market players have also been presented in the report, apart from the footprint matrix of profiled market players. The report depicts the presence of postal packaging manufacturers by leveraging an intensity map. It also highlights key end users for postal packaging.

The report includes company overview of key players. Some of the key companies profiled in the postal packaging market report include Smurfit Kappa Group, DS Smith Plc, WestRock Company, Mondi Group Plc, Rengo Co. Ltd., Cenveo Corporation, Neenah, Inc., Papier-Mettler KG, Bong Group, GWP Group, Shillington Box Company, Capital Envelopes LLC., WB Packaging Ltd., POLYPAK PACKAGING, United Envelope, Lil Packaging and Poly Postal Packaging Ltd.

Research Methodology

A realistic methodology, along with a holistic approach makes the base for sharp insights, which are provided in the postal packaging market for the study evaluation period. The TMR report comprises of detailed information on growth prospects, along with riveting insights into the forecast assessment of the market.

Extensive primary and secondary researches have been employed to garner keen insights into the forecast study of the postal packaging market. The report has undergone a cross-validation by in-house professionals to make the postal packaging market report one-of-its-kind, with the highest credibility.

Postal Packaging Market – Segmentation

The global postal packaging market has been divided on the basis of material type, packaging format, end use and region. Each of these segments are analyzed to provide readers with holistic view of the market.

Material Type

  • Paper & Paperboard
  • Plastic
  • Tyvek
  • Others

Packaging Format

  • Envelopes
  • Mailing Bags
  • Boxes & Cartons
  • Wraps
  • Others

End Use

  • Institutional / Commercial
  • Household

Region

  • North America
  • Latin America
  • Europe
  • Asia Pacific (APAC)
  • Middle East & Africa (MEA)

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Postal Packaging Market

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