The rise of the e-retail market has had a significant impact on the packaging industry, reads a Bain & Company report titled How India Shops Online 2023, in collaboration with the shopping giant Flipkart.

“India’s e-retail market is estimated to scale to USD 57- to USD 60-billion in 2023, adding USD 8- to USD 12-billion annually since 2020.” This study highlights the trend: the landscape of eCommerce and a notable shift in consumer preferences.

Customisation and branding

In e-retail, the physical presence of a product on a shelf is replaced by its online representation. As a result, packaging plays a crucial role in creating brand visibility and differentiation in a crowded online marketplace.

Many e-retailers and brands now use customised packaging to enhance the unboxing experience for customers. This trend has led to an increased demand for personalised, unique, and visually appealing packaging.

Protective packaging

eCommerce involves the transportation of products from sellers to consumers, often via multiple intermediaries. This requires robust packaging to protect goods from potential damage during transit, which has led to innovations in protective packaging materials and techniques.

Sustainable packaging

With growing environmental awareness, there is a push for sustainable and eco-friendly packaging solutions in the e-retail sector. Companies are exploring options such as biodegradable materials, reduced packaging, and recycling initiatives to minimise their ecological footprint.

Logistics and efficiency

E-retailers often prioritise packaging that is both lightweight and space-efficient to reduce shipping costs. This has led to the development of packaging solutions that maintain product integrity while minimising excess material usage.

Technology integration

Some e-retailers are incorporating technology into packaging, such as QR codes for product information, RFID tags for tracking, and augmented reality (AR) elements for interactive experiences. This not only enhances the customer experience but also provides valuable data for supply chain management.

Regulatory compliance

The e-retail market operates globally, and packaging must comply with various international shipping regulations. Packaging companies need to stay informed about these regulations and ensure that their products meet the necessary standards for different markets.

Evolving consumer expectations

E-retail has shifted consumer expectations, and packaging is now considered part of the overall product experience. Consumers often expect easy-to-open, secure, and aesthetically pleasing packaging that aligns with their online shopping experience.

Supply chain integration

The packaging industry is adapting to the need for efficient and streamlined distribution processes. This includes exploring innovations like automation, smart packaging, and data-driven insights to optimise the supply chain.

To sum up, the e-retail market has prompted the packaging industry to evolve in terms of customisation, sustainability, efficiency, and technology integration. As eCommerce continues to grow, the packaging sector will likely undergo further transformations to meet the changing demands of online retailers and consumers.