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eCommerce and Essential Applications Boost Market Growth amid Coronavirus Pandemic

The unprecedented growth of the packaging industry is being witnessed due to the expansion of the eCommerce sector coupled with the coronavirus outbreak. Such trends are translating into revenue opportunities for manufacturers in the postal packaging market. As such, manufacturers have entered the plug and play mode for production, owing to volatile demand sentiments. However, most manufacturers have been working at break-neck speeds to meet mission critical applications in healthcare, food & beverages, and eCommerce sectors.

Cash-rich companies in the postal packaging market are rethinking their business activities to deploy sustainable products, owing to awareness about growing environmental waste. Medium- and small-scale companies are taking advantage of government stimulus packages to stay financially afloat.

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Is Cardboard Fit to Replace Plastic & Paperboard for Postal Packaging?

Due to increasing awareness about the environmental stress caused by plastics, companies in the postal packaging market are now switching to paper. This has led to the popularity of cardboard boxes that are available in various shapes and sizes. Waste cardboard boxes are being converted into postal boxes. Such innovations are helping to establish a circular economy.

Cardboard is easily re-used for delivering multiple items, owing to its lightweight, flexible, and cost-efficient attributes. Moreover, cardboards are emerging as an eco-friendly alternative to paperboard boxes, since the former is biodegradable and does not add to the landfill. This is evident since paperboard contains chemicals that may even poison the soil.

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Recycled Materials Gain Dominance in Postal Packaging Solutions

The global postal packaging market is projected to surpass a volume of 11,150 thousand tons by 2029. Manufacturers are boosting their output capacities in standard mailing bags, paper returnable mailing bags, and clear polythene mailing bags, among others. Standard polythene mailing bags are being made from recycled materials to increase the availability of environment-friendly packaging solutions.

The 100% recyclable returnable mailing bags are inundating the postal packaging market. These bags are made from brown kraft FSC (Forest Stewardship Council) certified paper. Manufacturers are making use of heavy-duty materials for excellent strength in mailing bags.

Burgeoning Growth of U.K. E-Retail Creates Lucrative Opportunities

The postal packaging market is expected to reach the valuation of US$ 18.6 Bn by 2029. Manufacturers are boosting their production capacities in book packaging, protective envelopes, delivery boxes, and the likes. Davpack - a packaging company in Britain, is known for its comprehensive portfolio in postal packaging, including royal mail large letter packaging, documents enclosed wallets, and postal tubes.

The growing number of online shoppers in the U.K. are contributing to the expansion of the postal packaging market. This is fueling the demand for postal boxes and mailing bags, since the e-retail sector is growing at a rapid pace. Packaging companies are not only striving to help parcels arrive safely but also reduce cost for customers throughout the value chain. The eco-friendly packaging is gaining popularity in the U.K.

Reuse & Return of Packaging Help to Establish Circular Economy

Product protection, innovative packaging materials, and return & reuse of packaging trends are growing prominent in the postal packaging market. Companies are expected to collaborate with packaging engineers to reduce or eliminate damage risk in postal packaging solutions. Such collaboration is needed due to a surge in direct-to-consumer shipping.

The postal packaging market is projected to clock a CAGR of 6.5% during the forecast period. Manufacturers are designing paper mailers with four layers of paper and a water-based cushioning material using components found in the glue used to make cardboard.

Innovators are devising ways to reuse rather than recycle packaging materials. The Finland-based RePack is offering eCommerce shippers packaging that is returnable and reusable.

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Analysts’ Viewpoint

The sudden growth of the eCommerce sector triggered by the coronavirus pandemic has created a ripple effect that extends beyond supply chains, fulfillment, and transportation challenges. The returnable and reusable packaging is gaining increased popularity since this strategy helps to significantly reduce carbon footprint as compared to disposable packages. Recycled polypropylene from post-consumer waste is being used to design reusable postal packaging.

Paper mailers with four layers of paper and a water-based cushioning material using components found in the glue used to make cardboard are expensive than plastic, but its sustainability attributes offset its high price. Manufacturers in the postal packaging market can target eco-conscious consumers for sustainable paper mailers made with special materials.

Postal Packaging Market: Overview

  • According to Transparency Market Research’s latest report on the global postal packaging market for the forecast period of 2021-2029, the market is estimated to be driven by extensive growth of retail/eCommerce sector and increase in sustainability of various postal packaging solutions
  • The postal packaging market is expected to reach US$ 18.6 Bn by 2029, at a CAGR of 6.5% for 2021-2029

Safe Delivery of Products with Enabled Tracking System Driving Global Market

  • Products or items that are packed and transported using postal packaging such as mailers, envelopes, boxes, postal wraps, cartons and others ensure safe delivery of products. The mailing labels and barcodes on postal packaging enable safe packing, transport, and delivery of the product to the customer.
  • From packaging of the product to the delivery of the product to the customer, every step is notified, along with the location, time, and status of the transport to the end user as well as to the sender, to track the status of the product. This ensures safety of the product for the manufacturer as well as the consumer.
  • Thus, use of mailing labels, barcodes, stamps, and others postal packaging enhances the use of mailers, boxes, and envelopes, thereby propelling the market for postal packaging products
  • RFID system comprises a tag that contains unique tracking data and a tag reader. The RFID reader emits a radio signal for activating the tag and read the data on it. It is primarily used to track and locate the package during transportation and organize the delivery schedules for express and most urgent delivery packages. RFID systems help in eliminating human error and reduce the tedious manual work. An RFID system is a mail delivery process, from package acceptance, classification, sorting to dispatching the package. Therefore, the RFID system in postal packaging is likely to witness significant growth as it minimizes human intervention, reduces costs, and supports safe and secure delivery of products to the customers.

Innovations in Liquid Products for Pharmaceuticals Postal Packaging to Create Opportunities in Global Market

  • Manufacturers involved in the production of different postal packaging such as mailers, envelopes, postal tubes, boxes, etc. are continuously working on the improvement of postal packaging solutions in terms of improving their physical characteristics. Moreover, increased emphasis on the research & development is responsible to launch new products in the postal packaging market. For instance, RPC M&H Plastics developed the postal pack range, which is designed to be easily posted through letterboxes, and is used for the packing and transport of liquid products. These postal packs are also available for transportation of solid products such as spices, and other items, and are available in various capacities.
  • Therefore, improvement in the physical properties of the postal packs, especially considering the temperature regulation properties, enhanced barrier properties, improved recycling properties, and more, can lead to the opportunity for the packing and transport of the pharmaceutical dosage forms, such as semi-solids and liquids, especially the OTC (Over-the-Counter) medicines. This will eventually eliminate the need for additional packaging to pack the liquid products through the postal packaging.

Postal Packs for Liquid Products and Heavy Products Fueling Growth of Postal Packaging Market

  • The postal packs are generally used for the transportation of products or goods that are low to moderate in weight. Due to continuous innovations being carried out on the improvement of the physical properties of postal packaging such as enhanced durability, strength, and more, postal boxes are capable of transporting heavy materials or products.
    • For instance, recently, Kite Packaging, with the addition of new heavy-duty long postal boxes, has expanded its product portfolio, which are capable of holding and transporting heavy products. This cardboard box is double-walled with 100% recyclable material, which is specially made for the packing of longer and heavier products.
    • RPC M&H has developed a unique postal packaging range, which is used for the packing of a wide range of solid and liquid products. These postal packs are available with varying neck and closure specifications to fit different product requirements. The solid dose variants range from 150 ml to 320 ml, while the liquid dose variant range up to 300 ml.
  • These postal packs are ideal for the packaging and transportation of spices & ingredients, OTC medicines, and others, which can be easily posted through these postal packs

Easy Wear & Tear of Flexible Packaging May Hamper Market Growth

  • Flexible packaging formats used in postal packaging, such as mailers, envelopes, and others, to pack small and lightweight things, are susceptible to wear & tear due to lack of proper handling and environmental changes. These postal packaging options are not suitable for heavy or large products or items and, thereby, can only hold a certain level of weight. In addition, if the mailers or envelopes are pressed between the boxes or any other huge items, it may lead to the damage of the product by certainly causing wear and tear to the outer packaging.
  • Envelopes and mailers have limited strength and durability; therefore, these are not suitable for packing of sensitive products or items. Envelopes or mailers can hold one product at a time, and are not suitable for packing and transportation of heavy products. The improvement in the physical properties of envelopes or mailers such as an increase in the durability and strength by the use of bubble pads or some additional barriers can prevent the wear and tear of the postal packaging, thus protecting the product.

Postal Packaging Market: Key Findings

  • In terms of material, paper & paperboard segment is anticipated to lead the global postal packaging market during the forecast period with a market share of 69.2% in 2029. The variety of postal packaging products offered with the use of paper & paperboard such as envelopes, mailers, boxes, paper tubes, etc. is expected to propel the market.
  • Based on packaging type, envelops with proper cushioning are gaining significant traction among end users, attributing to increasing demand for protective and lightweight packaging solutions. The envelops segment is estimated to hold 1/3rd of the global share in 2021.
  • Based on end use, the institutional segment was valued at US$ 5.7 Bn in 2020. The frequent use of mailers, envelopes, etc. in this segment is anticipated to account for a prominent share of around 54.1% of the total market share by the end of 2029.
  • Asia Pacific is expected to account for 46.4% market share by 2029. Moreover, this market in Europe is projected to create an incremental opportunity of US$ 1.4 Bn by 2029, owing to the increase in the growth of logistics & transportation and eCommerce sectors.

Postal Packaging Market: Competition Landscape

  • TMR analyzed that the global postal packaging market is highly competitive, owing to new start-ups and entry of local players. This completion among key players is carefully studied based on developments, strategies, and segmental revenues of companies over the past five years.
  • The recent study on the postal packaging market includes profiles of players such as
    • Smurfit Kappa Group
    • DS Smith Plc
    • WestRock Company
    • Mondi Group Plc
    • Pregis LLC
    • Rengo Co., Ltd.
    • Cenveo Corporation
    • Neenah Inc.
    • Papier-Mettler KG
    • Bong Group
    • GWP Group
    • Shillington Box Company
    • WB Packaging Ltd.
    • Polypak Packaging
    • United Envelope
    • Lil Packaging
    • Poly Postal Packaging Ltd.
    • Elite Envelopes & Graphics Inc.
    • IPS Packaging & Automation, among others
  • TMR differentiated these players as Tier 1, Tier 2, and Tier 3 as per their segmental earnings. Among these players, Smurfit Kappa Group, DS Smith Plc, WestRock Company, and Mondi Plc are identified as Tier 1 players in the postal packaging market. The Tier 2 players are Cenveo Corporation, Neenah Inc, Papier-Mettler KG, and Bong Group. Tier 3 players are Shillington Box Company, Capital Envelopes LLC, WB Packaging Ltd., United Envelope, Elite Envelopes & Graphics, etc.

Spread of COVID-19 Pandemic Limits Market Growth

  • The COVID-19 pandemic has had a severe impact on various industrial sectors, and packaging is no exception. The demand for industrial components, luxury products, cosmetics, and beauty care product packaging has decreased, whereas the demand for food, medicines, and other essentials home products has risen tremendously. The need for contact-free and timely drop-off with low manpower during the pandemic was a key requisite.
  • The postal packaging has witnessed high demand for packaging food, FMCG, and other essential products due to enormous growth of the eCommerce sector. With social distancing and lockdown, consumers preferred ordering online more than ever before. However, consumers have become extremely cautious about product packaging, and the chances of virus present on the surface of the packaging type.
  • Postal packaging has immense potential in delivering products quickly with optimal protection. Therefore, the growing need for hassle-free, contact-free, protective, and sterilized packaging has created ample growth opportunities for postal packaging.
  • The postal packaging market is expected to recover from COVID-19, and decent progress is expected in 2021-2022, with a year-on-year growth of 5.6% to 5.9% in both years

Postal Packaging Market Snapshot

Attribute

Detail

Market Size Value in 2020 (Base Year)

US$ 10.6 Bn

Market Forecast Value in 2029

US$ 18.6 Bn

Growth Rate (CAGR)

6.5%

Forecast Period

2021-2029

Quantitative Units

US$ Mn for Value & 000 Tons for Volume

Market Analysis

This report represents market dynamics of postal packaging and lucrative hotspots of the market.

Competition Landscape

Competition analysis section in the report represents 5 years performance of the key players and strategies implement by them, along with market share of respective companies in the global market.

Format

Electronic (PDF) + Excel

Market Segmentation

  • Material
    • Paper & Paperboard
    • Plastic
    • Tyvek
    • Others (Metal, Bio-based Material)
  • Packaging Format
    • Envelopes
    • Mailing Bags
    • Boxes and Cartons
    • Wraps
    • Others (Cushions, Closures, Tapes, etc.)
  • End Use
    • Institutional
    • Household

Regions Covered

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa

Countries Covered

  • U.S.
  • Canada
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
  • Germany
  • Spain
  • Italy
  • France
  • U.K.
  • Benelux
  • Nordic
  • Russia
  • Poland
  • Rest of Europe
  • China
  • India
  • Japan
  • ASEAN
  • Australia & New Zealand
  • Rest of APAC
  • GCC Countries
  • Northern Africa
  • South Africa
  • Rest of MEA

Companies Profiled

  • Smurfit Kappa Group
  • DS Smith Plc
  • WestRock Company
  • Mondi Group Plc
  • Pregis LLC
  • 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
  • Poly Postal Packaging Ltd.
  • Elite Envelopes & Graphics Inc.
  • IPS Packaging & Automation

Customization Scope

Available upon Request

Pricing

Available upon Request

Postal Packaging Market – Scope of Report

Transparency Market Research (TMR) started a new study on the global postal packaging market, providing forecast for the period of 2021-2029. 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 market size for postal packaging by the end of 2029?
  • What will be the impact of COVID-19 on postal packaging market?
  • Which is the most preferred material for manufacturing postal packaging in the global market?
  • Which packaging format holds maximum market share in the postal packaging market?
  • Which region will remain most lucrative for market growth?
  • Which end use 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 material, packaging format, end use, and region.

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

The report delivers an exhaustive assessment on the structure of the postal packaging market, in tandem with a 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, Pregis LLC, Rengo Co., Ltd., Cenveo Corporation, Neenah Inc., Papier-Mettler KG, and others.

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 further 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 segmented on the basis of material, packaging format, end use, and region. Each of these segments have been analyzed to provide readers with holistic view of the market.

Material
  • Paper & Paperboard
  • Plastic
  • Tyvek
  • Others (Metal, Bio-based Material)
Packaging Format
  • Envelopes
  • Mailing Bags
  • Boxes and Cartons
  • Wraps
  • Others (Cushions, Closures, Tapes, etc.)
End Use
  • Institutional
  • Household
Region
  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa

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Postal Packaging Market