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Postal Packaging Market

Postal Packaging Market Forecasts to 2028 – Global Analysis By Material (Paper & Paperboard, Plastic, Tyvek, Other Materials), Packaging Format (Envelopes, Mailing Bags, Boxes and Cartons, Wraps), End User, and By Geography

4.4 (74 reviews)
Published: January 2022 ID: SMRC21271
4.4 (74 reviews)
Published: January 2022 ID: SMRC21271

This report covers the impact of COVID-19 on this global market

According to Stratistics MRC, the Global Postal Packaging Market is accounted for $10.43 billion in 2021 and is expected to reach $17.30 billion by 2028 growing at a CAGR of 7.5% during the forecast period. Postal packaging refers to the packaging of any component which is ideally packed and enclosed in a reasonably strongg case wrapper or cover fastened. It is done in a certain manner to preserve the contents from loss or damage in the post and prevent any tampering. The packaging protects protect other postal articles from being damaged during transportation. Cardboard is easily re-used for delivering multiple items, owing to its lightweight, flexible, and cost-efficient attributes. Moreover, cardboards are emerging as an eco-friendly alternative to paperboard boxes, since the former is biodegradable and does not add to the landfill. This is evident since paperboard contains chemicals that may even poison the soil. Due to continuous innovations being carried out on the improvement of the physical properties of postal packaging such as enhanced durability, strength, and more, postal boxes are capable of transporting heavy materials or products. These postal packs are ideal for the packaging and transportation of spices & ingredients, OTC medicines, and others, which can be easily posted through these postal packs. The improvement in the physical properties of envelopes or mailers such as an increase in the durability and strength by the use of bubble pads or some additional barriers can prevent the wear and tear of the postal packaging, thus protecting the product.

Market Dynamics:

Driver:

Growing demand of postal packs for liquid products and heavy products


The postal packs are generally used for the transportation of products or goods that are low to moderate in weight. Due to continuous innovations being carried out on the improvement of the physical properties of postal packaging such as enhanced durability, strength, and more, postal boxes are capable of transporting heavy materials or products. For instance, recently, Kite Packaging, with the addition of new heavy-duty long postal boxes, has expanded its product portfolio, which is capable of holding and transporting heavy products. This cardboard box is double-walled with 100% recyclable material, which is specially made for the packing of longer and heavier products.

Restraint:

Adverse environmental effects of plastics


Plastic pollutes the oceans and land, and animals can also choke on this material. Over a long period of time, sunlight breaks the plastic molecules which then poison the soil, affecting the fertility of the land. When plastic does eventually break down, it can still leave a microplastic remains which is also equally bad for the environment. It has been reported that plastic production is around 381 million tons and 5 trillion or more pieces of plastic are polluting the waters around the world.

Opportunity:
 
Increase in environment concerns driving players to use cardboard postal packaging instead of plastic & paperboard


With surge in consumer awareness about adverse effects of plastics on environment, companies engaged in the global postal packaging market are growing adoption of paper. As a result, cardboard boxes with different shapes and sizes are gathering immense traction. Several market players are utilizing the strategy of converting waste cardboard boxes into postal boxes. The postal packaging market is expected to gain the advantage of such innovations. Flexibility, cost-efficiency, and lightweight are some of the key advantages of cardboard that make it one of the popular options available in the market. Moreover, the use of cardboards is projected to increase in the forthcoming years, as it is considered sustainable option to replace paperboard boxes.

Threat:

Negative impact of the COVID-19


The negative impact of the COVID-19 on the supply and transportation is projected to challenge the postal packaging market in the forecast period. The COVID-19 pandemic has had a severe impact on various industrial sectors, and packaging is no exception. The demand for industrial components, luxury products, cosmetics, and beauty care product packaging has decreased, whereas the demand for food, medicines, and other essentials home products has risen tremendously. The need for contact-free and timely drop-off with low manpower during the pandemic was a key requisite. The postal packaging industry is experiencing a disproportionate negative impact from a range of factors including Brexit and the pandemic. The current turbulences have created the perfect storm that is likely to last for the foreseeable future.

The envelopes segment is expected to be the largest during the forecast period

The envelopes segment is estimated to have a lucrative growth due to the rising demand for envelops in the end user industries. Envelopes are the most common postal collaterals used by industries and commercial units. The growing demand for postal envelopes is also creating new opportunities for growth across the global postal packaging market. Furthermore, the humongous relevance of envelopes for safe dispatch of confidential papers is creating fresh avenues for market expansion.

Region with highest share:

Asia Pacific is projected to hold the largest market during the forecast period due to the increasing middle-class population with the increasing family income. Also, with growing urbanization in the Asia Pacific region apart from the other developing regions of the world, there is an increasing shift from rural to urban areas which have brought in changes in dietary consumption as well. In countries like India, citizens of the country have started moving away from a regular traditional form of food consumption which includes cooking at home and eating together. This shift in the trend has been observed with the adoption of a busy lifestyle and women entering the major workforce, leading to a growing preference for convenience foods and beverages.

Region with highest CAGR:

Europe will have highest CAGR owing to the gain from the demand witnessed in the household segment than commercial sector. Growth too is expected to be at a higher pace in the household segment in comparison to the latter. The rising penetration of ecommerce, coupled with the demand for sustainable packaging, has been aiding expansion witnessed in Europe. The consistently increasing demand from Germany, Spain, Nordic, Poland, and other countries has made the region an attractive market for postal packaging.

Some of the key players profiled in the Postal Packaging Market include Bong Group, Cenveo Corporation, DS Smith Plc, Elite Envelopes & Graphics Inc., GWP Group, IPS Packaging & Automation, Lil Packaging, Mondi Group Plc, Neenah Inc., Papier-Mettler KG, Poly Postal Packaging Ltd., Polypak Packaging, Pregis LLC, Rengo Co., Ltd., Shillington Box Company, Smurfit Kappa Group, United Envelope, WB Packaging Ltd., and WestRock Company.

Key Developments:

In September 2021, DS Smith has launched plastic-free fixation-packaging for e-commerce using crepe paper instead of PE foil. Fixation packaging already dispenses with additional filling materials and is used in many industries for single item shipment of various products.

In June 2021, Mondi has increasing capacity for their postal packaging-based MailerBAG range to further replace plastic packaging in eCommerce with a recyclable solution made of responsibly sourced renewable materials.

In October 2021, Smurfit Kappa completes acquisition of containerboard mill in Italy. The company said it is highly complementary with SKG’s existing operations, strategically located close to the port of Savona and is expected to deliver significant benefits for both the group and its customer base.

In September 2021, Heinz Partners with WestRock to Remove 550 Tonnes of Plastic Packaging from Multipacks. Developed by WestRock, the recyclable, renewable, responsibly sourced and carbon neutral paperboard sleeve[1] is part of Heinz’s £25 million investment in sustainable packaging solutions
 
Materials Covered:
• Paper & Paperboard
• Plastic
• Tyvek
• Other Materials

Packaging Formats Covered:
• Envelopes
• Mailing Bags
• Boxes and Cartons
• Wraps
• Other Packaging Formats

End Users Covered:
• Institutional / Commercial
• Household

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan       
o China       
o India       
o Australia 
o New Zealand
o South Korea
o Rest of Asia Pacific   
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

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