Published Date : May 18, 2016
Rapid growth of the manufacturing sector, coupled with the rise of the e-commerce sector has boosted the growth of the paper packaging materials market. Stressing on the importance of packaging, e-commerce giant Amazon has taken initiatives to standardize packaging for purchases across its platforms. This is the first time the company has taken such an initiative across the globe. In India, Amazon is helping vendors source its packaging supplies. Usually, orders that are sent from Amazon’s warehouse have branded packaging. However, there are a number of vendors on Amazon’s platform who use their own packaging.
Online Retailers Contribute Significantly towards Demand for Paper Packaging Materials
It has been observed that though retailers have a very little say in the proper delivery of a package once it leaves their warehouse, customers relate their shopping experience with the online retailers and not with third-party agencies involved in delivering the packages at their doorsteps. As e-commerce retailers take the blame for a damaged package, companies such as Amazon are ensuring consistent packaging for all its products to facilitate easy delivery, exchange, and enhanced shopping experience. Under the new initiative taken by Amazon, vendors on the company’s platform will be able to buy the company’s branded packaging materials including thermocol balls, air-filled packets, and corrugated boxes.
The growing demand for flexible packaging from the BRIC market and increasing awareness of ecological issues have driven the demand from the global paper packaging materials market. However, stringent deforestation regulations will hamper the growth of the market. Ban on lightweight plastic bags is expected to open new opportunities for the growth of the market.