Sustainable E-commerce Packaging Market Sets USD 81.55 Bn at 8.63% CAGR

Sustainable E-commerce Packaging Market Playbook, Growth Opportunities and Trends

Analysts project the sustainable e-commerce packaging industry to expand from USD 35.64 billion in 2024 to USD 81.55 billion by 2034, marking a CAGR of 8.63% through the decade. The rising demand for eco-friendly, cost-effective, and recyclable e-commerce packaging reflects growing consumer awareness, aiming to reduce carbon emissions, minimize waste, and promote compostable materials for a more sustainable future.

Last Updated: 28 April 2025 Category: Others Packaging Insight Code: 5531 Format: PDF / PPT / Excel

Sustainable E-commerce Packaging Market Growth with Logistics & Distribution Solutions

The sustainable e-commerce packaging market is forecasted to expand from USD 38.72 billion in 2025 to USD 81.55 billion by 2034, growing at a CAGR of 8.63% from 2025 to 2034.The growing demand for sustainable packaging of the products, expanding retailers and e-commerce industry, increasing ecological concern has influenced the growth of the market. The continuous innovation in the packaging industry has increased the demand for sustainable e-commerce packaging market.

    Sustainable E-Commerce Packaging Market Size 2024 to 2034

Key Takeaways

  • North America led the sustainable e-commerce packaging market with the highest share in 2024.
  • By region, Asia Pacific is expected to witness the highest CAGR during the forecast period.
  • By material type, the plastic packaging segment dominated the market share 2024.
  • By e-commerce type, the B2C packaging segment has dominated the market share.
  • By application type, the electronics & appliances segment has dominated the market share.

Market Overview

The sustainable e-commerce packaging market plays a significant role in the e-commerce industry as it helps to minimize the carbon footprint. It is to save the ecological issues gradually increasing which has also increased the guidelines of the government associated in this packaging industry. This growth is majorly due to the rising concern among consumers for using eco-friendly packaging to reduce the adverse ecological impact. The increasing online shopping trend among people has fuelled the development of the market.

The major market players such as Berry Global, Plastic Suppliers, Inc., Mondi Group, PakFactory, Oji Holdings, and many others which are constantly pushing this market to develop rapidly. North America region is dominating in this market due to several factors associated with it such as growing e-commerce adoption, technological advancement, and raising awareness regarding ecological effects.

This market is becoming popular to enhance the user experience, improve brand loyalty, increase sales, and several other benefits are associated with it. As many products are available in the e-commerce sector there is a growing demand for sustainable packaging in this industry.

Key Metrics and Overview

Metric Details
Market Size in 2024 USD 35.64 Billion
Projected Market Size in 2034 USD 81.55 Billion
CAGR (2025 - 2034) 8.63%
Leading Region North America
Market Segmentation By Material Type, By E-Commerce Type, By Application and By Region
Top Key Players The Better Packaging Co. Limited, Plastic Suppliers, Inc., Berry Global, Smurfit Kappa Group
  • The huge demand for eco-friendly packaging has increased the demand for sustainable e-commerce packaging to satisfy the ecological awareness among consumers.
  • The continuous demand for production of packages with less carbon emission and minimize the generation of waste products.
  • To improve the waste deposition in the landfills which is strong but compostable.
  • The growing demand for reusable or recyclable packaging that can be used for multiple times which decrease the ecological adversities. 
  • The increasing demand for cost-effective packaging among people has influenced the demand for this market.

AI Integration in the Sustainable Packaging Solutions

In the sustainable e-commerce packaging market, there is a huge impact on AI as it helps e-commerce industries to achieve their sustainability goal. The ability of the artificial intelligence to process a huge amount of data, recognize their pattern, and help to take better decisions for the development of this industry. It helps to develop pattern which are useful to function as well as fulfil visual appearance demand, such innovation enhance the demand for sustainable e-commerce packaging.

Moreover, artificial intelligence is used to automate and optimize several packaging procedures, increase efficiency, and decrease the production of waste. It enables industries to use sustainable packaging without any compromise with the quality and cost of the packaging which is the major concern of the market players. Advanced technology is majorly utilized to choose the packaging material required for the manufacturing of packages as it can analyse the ecological impact of the material used in the packaging. By the incorporation of technologies such as machine learning algorithms it’s become easy for the market players to design packaging with minimum material but provide high quality protection.

Market Dynamics

Rising Demand for Biodegradable and Recyclable Packaging

The rising demand for biodegradable and recyclable packaging for a wide variety of products by several brands has driven the sustainable e-commerce packaging market to grow. The continuous growth in the e-commerce industry has also raised the demand for packaging of the products with high-quality protection.

For instance, in 2023, the total B2C European e-commerce turnover saw a modest growth of 3%, increasing from €864 billion to €887 billion. The usage of materials which can be easily recycled and renewable which can decompose after multiple times recycling.

There are three types of packaging like primary packaging, secondary packaging, and tertiary packaging which are mostly preferred by the e-commerce industry. It cut down the waste generation which conserve the ecological condition and enhance brand reputation. These are highly durable which enhance the potential of the packaging and last for long time.

Producers and customers are attracting more conscious of the ecological significances of packaging excess, resultant in an incremental necessity for supportable packaging resolutions that decrease waste and use environment-friendly resources. The behaviour of ecologically aware customers in advanced regions such as North America and Europe settles in the direction of ecologically sustainable packaging, which is manufactured by compostable, recycled, or biodegradable resources.

Demand for Durable and Eco-friendly Packaging: Market’s Largest Potential

Sustainability in the packaging industry has boosted the development of the sustainable e-commerce packaging market. Online buying, and hereafter e-commerce packaging manufacture and usage, have full-grown progressively in current years, and so has their ecological influence as a consequence. Sustainability is a main driver of buying choices and brand attraction in e-commerce sector. Sellers and e-commerce packaging merchants are taking step by joining sustainable packaging adoptions such as corrugated containers made from recycled resources, paper-based substitutes, and simplistic patterns that reduce material utilization. There is a huge demand for durable packaging as the growing e-commerce sector required transportation of the products to a longer distance. The safety of products is the major concern among the market players.

The developing scenery of e-commerce packaging also offerings several chances for innovation and development. The growing customer demand for tailored shopping involvements is driving the requirement for customizable packaging resolutions. Brands that deliver customized packaging choices can distinguish themselves in a packed market player, enhancing consumers appointment and fulfilment. Additionally, the growth of omnichannel vending is making demand for multipurpose packaging resolutions that can provide to several supply channels. Corporations that can progress packaging resources that are appropriate for both online and in-store sales are well-situated to exploit on this trend. The incorporation of e-commerce and outdated retail can improve logistical efficacies and offer a unified shopping practice for customers.

Rising Packaging Waste a Major Challenge in the Sustainable E-commerce Packaging Market

This market is progressively introducing advancement in packaging of the products but the generation of huge amount of waste due to packaging is the major concern among market players. This has become a major challenge for environment activities to clean such a huge amount of packaging waste. With the advancement of technologies the production of these packaging increases which create issues for cleaning the landfills.

Segmental Insights

Sustainable and Recyclable Packaging: Plastic Market Segment Led in 2024

The plastic segment dominated the market in 2024 due to its recyclable and sustainable properties. Plastic material is highly used for the manufacturing purpose in the sustainable e-commerce packaging market as these can be recycled easily which reduce the waste deposited in the landfills. The usage of eco-friendly plastic such as recycled polyethylene terephthalate (rPET) which are easily recyclable for multiple times. Plastics are considered as cost-effective, lightweight, durable, and several such combination make them ideal for packaging of the products. In the e-commerce industry there is a huge demand for packaging material that are cost effective and durable which can provide protection to the products. As there are several products delivered due to rising online ordering trend there are various fragile products that need to be transported safely. Plastics such as PET (polyethylene terephthalate) and HDPE (high-density polyethylene) are highly recyclable and considered to be suitable option for packaging.

Rapid Growth of Online Retail: B2C Market Segment Led in 2024

The B2C segment dominated the market in 2024 due to the rapidly growing online retail market, rising preference for DTC models, and continuous demand for sustainable packaging. The growing concern among consumers has driven this segment significantly as it has a direct impact over customers about brands. In this segment business are highly concern about their marketing strategy which incline them towards sustainable e-commerce packaging to build an impression on their consumers. Several brands are under pressure to meet the demand of their consumers regarding sustainability.

Growing Online Ordering Trend: Electronics & Appliances Market Segment Led in 2024

The electronics & appliances segment dominated the market in 2024 due to the rapidly growing trend for online ordering of electronics products. These are fragile products require safe packaging to protect from damage while transporting to a longer distance. Such packaging attracts a huge number of consumers towards this market as these are affordable yet durable packaging.

Regional Insights

Strict Packaging Rules: North America to Sustain as a Leader

North America held the largest share in 2024. This is due to several factors such as strict packaging rules, reduction of waste, ecological awareness, and many others. The rising shift of the brands towards sustainability has influenced the demand for such packaging in the e-commerce industries. The rising awareness among people of countries such as the U.S. and Canada has compelled brands to use packaging which are sustainable. The presence of several major market players also influenced the usage of such packaging as they bring continuous innovation to this market.

Growing Ecological Awareness: Asia Pacific to Grow Rapidly

Asia Pacific is expected to grow at the fastest rate during the forecast period. This is due to the growing ecological awareness among people which influence the adoption of sustainable e-commerce packaging. Countries such as China is the hub of e-commerce trade which increase the demand for packaging of products and continuous research for their enhancement.

India has a huge consumer base for online ordering products which increase the demand for sustainable packaging due to growing awareness about the adverse effect on ecology due to packaging wastage. Strict government regulations towards packaging industry have fuelled this market in South Korea. Adoption of these types of packaging help brands to grow rapidly by attracting huge number of customer base.

Sustainable E-commerce Packaging Market Key Players

 Sustainable E-commerce Packaging Market Companies

Latest Announcements by Market Leaders

  • In January 2025, Director, Marketing for North America, Cheryl Holliday expressed, “DS Smith understands the growing importance of sustainable packaging solutions in today’s e-commerce landscape, specifically as it relates to consumers returning goods.”

Recent Development

  • In January 2025, DS Smith announced the launch of Tape Back which is a unique packaging design solution that eliminates the need for single-use plastic tear strips in e-commerce packaging.
  • In July 2024, 2M Group announced the launch of a new packaging focused business unit, Sustainable Packaging Technologies, to promote our growing portfolio of biomaterial technologies.

Sustainable E-commerce Packaging Market Segments

By Material Type

  • Metal
  • Paper and paperboard
  • Bioplastics & compostable materials
  • Plastic

By E-Commerce Type

  • B2C
  • B2B

By Application

  • Fashion and apparel
  • Electronics & appliances
  • Books & stationery
  • Beauty & personal care
  • Food and beverage
  • Pharmaceuticals
  • Others

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Norway
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East and Africa (MEA)
    • South Africa
    • UAE
    • Saudi Arabia
    • Kuwait
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  • Insight Code: 5531
  • No. of Pages: 150
  • Format: PDF/PPT/Excel
  • Last Updated: 28 April 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Deepa Pandey is a market research expert in packaging with 3+ years of experience, specializing in regulatory compliance, design innovations, sustainable packaging, and delivering insights to enhance safety and efficiency.

Learn more about Deepa Pandey

Aditi Shivarkar, with 14+ years in packaging market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards Packaging 's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

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FAQ's

Packaging which are environment friendly and safe to deliver products.

It is used in several industries such as electronics & appliances, fashion, and food sector.

These are recyclable, biodegradable and reusable packaging.

U.S Environmental Protection Agency, NIH.