According to Smithers’ latest report, “The Future of E-commerce Packaging to 2029”, the global market for e-commerce packaging is expected to grow at a 9.0% compound annual growth rate (CAGR) to reach $116.1 billion (£86.8 billion) in 2029.
The market, valued at $75.3 billion (£56.3 billion) in 2024, has expanded – rising at an average annual rate of 16.8% since 2019. As online retail continues to accelerate, packaging solutions are evolving to meet new consumer demands, delivery requirements, and sustainability targets.
Corrugated board remains the dominant packaging format, valued at $61.3 billion (£45.8 billion) in 2024, stated Smithers. Its popularity stems from its durability, environmental credentials, and adaptability across product categories. With a projected CAGR of nearly 10%, Smithers believes corrugated board is expected not only to retain its lead but also grow its share of the market by 2029.
The report also highlighted flexible packaging, currently worth more than $11 billion (£8.2 billion), as the second largest segment. With anticipated growth of almost 8% annually through 2029, it remains favoured in the apparel sector due to its lightweight design and cost-effectiveness for brands. Other formats, such as protective mailers and protective packaging, are smaller in market value due to their more limited application across fewer sectors.
Among end-use markets, apparel leads the way, generating over $21.8 billion (£16.3 billion) in 2024, the company revealed. It is also forecast to be the fastest-growing sector, with nearly 12% annual growth expected through 2029.
Geographically, the Asia-Pacific region dominates, led by China, Japan, and South Korea. However, the US remains the largest single market outside the region, holding nearly 24% of market value in 2024 – a share projected to exceed 26% by 2029, Smithers concluded.
