The emergence of affordable smartphones and internet connections is a key factor resulting in the rising demand for retail e-commerce packaging. Owing to technological advancements, the number of people who can afford electronics such as smartphones has risen considerably over the past few years. Moreover, access to internet has also increased in the past few years, which is why a larger number of people are able to shop online. This is further leading to the expansion of digital industries, including e-commerce, which, in turn, is driving the demand for packaging solutions.


As per a study conducted by P&S Intelligence, the global retail e-commerce packaging market is projected to reach a value of $68,388.1 million by 2030, rising from $19.022.7 million in 2019, progressing at a 12.1% CAGR during the forecast period (2020–2030). The market is being driven by the changing consumer preferences, surging population, and growing affordability of internet connections and mobile phones across the globe. In terms of material type, the market is bifurcated into envelopes and boxes, between which, the boxes bifurcation held the largest share of the market in 2019.


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The bifurcation is further predicted to account for the largest revenue share of the retail e-commerce packaging market during the forecast period as well. Companies focus on packaging that can protect contents from different kinds of damage while it is being delivered, since delivering a product just one time costs 2–3 times less than it does for second or multiple deliveries. Since boxes offer strength and durability, along with ensuring consumer retention rate and reducing return ratio, enterprises are increasingly making their use.


The MEA region accounted for quite a small share in the overall retail e-commerce packaging market in the past, due to the fact that it has been highly untapped by e-commerce companies, which directly or indirectly impacts the associated industries, such as retail e-commerce packaging and logistics. However, in the future, the region would demonstrate the highest growth rate, on account of the changing government policies, mainly in Saudi Arabia and the U.A.E., in order to reduce the reliance on the oil and gas industry and focus on other sectors to diversify their sources of income.

Moreover, the increasing international trade and higher average spending per order in Gulf Cooperation Council (GCC) countries are also attracting e-commerce companies to capture the market, in order to get the first-mover advantage.