Compared to 120 million in 2018, India is expected to be home to 220 million online shoppers by 2025, says the India Brand Equity Foundation (IBEF). Consequently, from $38.5 billion in 2017, the Indian e-commerce industry would mushroom to $200 billion by 2027. This is a result of the rapidly increasing uptake of smartphones and rising number of people who can access the internet. Online platforms, such as Amazon, Ebay, Myntra, and Jabong, are already doing robust business in the country. The situation in the rest of the world is similar, where the number of online shoppers is rapidly surging.

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With the growing volume of shipments, e-commerce companies are using an ever-increasing amount of corrugated packaging material. Thus, with the expansion of e-commerce, the corrugated packaging market is predicted to witness an increase in its size, to $294.3 billion by 2023, from $237.5 billion in 2017, at a 3.7% CAGR during the forecast period (2018–2023). Corrugated packaging includes those typical brown boxes in which electronic gadgets, personal care products, and even clothes are delivered at home. It is made from paperboard, which is itself made from paper pulp, so is entirely biodegradable.

 

The concerns raised over the use of plastic boxes, which are not degradable, and hence, cause surface pollution, have been one of the major reasons behind the switch to paperboards. Though plastics are easily recyclable, most of it goes into the trash, instead of a reprocessing facility. As per the estimates by the National Geographic Society, since the 1950s, 6.9 million tons of plastic has been produced, but only 0.6 million tons has made it to recycling plants. Therefore, to cut the problem of plastic pollution at the source, corrugated packaging is being promoted.

 

Another reason the usage of such packaging materials, or packaging materials in general, is increasing is the rising manufacturing output. As per the World Bank, the gross domestic product (GDP) around the world has steadily increased from $60.334 trillion to $85.91 trillion during 2009–2018. With the volume of goods being produced increasing year-on-year, the logistics, shipping, and transportation activities are rising too, which is leading to a surging demand for various packaging materials, including paperboards and fiberboards.

 

Corrugated packaging materials are used for the transportation of fresh food and produce, processed food, personal and household care products, beverages, paper products, chemicals, glassware and ceramics, electrical and electronics goods, wood & timber, tobacco, mail & post items, textiles, footwear, furniture, and apparel. Among these, corrugated packaging was used most for the transport of processed food up till the last few years, as such stuff requires flexible and secure packaging to offer customers convenience.

 

The consumption of processed food has ballooned up in emerging economies in the last 10–15 years, owing to an increase in the disposable income of the people. Processed food is generally more expensive than fresh food or that which is sold loose, which is why earlier, the consumption of packaged food stuff has high in developed countries, but not in developing ones. But, with rapid industrialization and migration of people from the rural areas to urban pockets in emerging companies, their wages increased and so did their purchasing power, which is why chips, soft drinks, chocolates and other such products are becoming popular here.

 

This is also why Asia-Pacific (APAC) was the largest corrugated packaging market during the last 5–6 years and the situation would be the same, at least till 2023. Apart from packaged food, the sale of other non-durable and durable goods is also growing in India, Indonesia, and China, which leading to a rising requirement for packaging materials. Additionally, with a strong focus on sustainability, the consumption of eco-friendly materials, such as paperboard boxes, is surging.

 

Therefore, with economic prosperity around the world, the demand for corrugated packaging would continue to rise.