Global E-Commerce Packaging Market to Hit USD 232.9 Billion by 2035 — Europe Leads as Retail Digitalization Accelerates: FMI Insights

The global e-commerce packaging market is entering a high-growth decade, fueled by rising online retail transactions, sustainability mandates, and technology-driven innovations. According to the latest industry analysis, the market is estimated to be valued at USD 85.1 billion in 2025 and is projected to reach USD 232.9 billion by 2035, expanding at a 10.6% CAGR. While North America and Asia Pacific remain key volume contributors, Europe is taking a leading role in market share growth due to its aggressive transition toward eco-friendly packaging regulations and circular economy policies.

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Rapid Digital Retail Adoption Accelerates Global Demand

The meteoric rise in online shopping—seen across electronics, personal care, fashion, and food delivery—is reshaping packaging strategies worldwide. Higher parcel movements demand packaging that is lightweight, durable, and customizable, while also meeting cost-efficiency requirements for logistics and last-mile delivery.

With omnichannel retailing gaining traction globally, brands are increasingly investing in packaging that enhances the unboxing experience while ensuring product safety.

Europe Emerges as the Sustainability Leader

Europe is expected to hold a leading market share through the forecast period, fueled by its regulatory push toward biodegradable, recyclable, and reusable materials. The region’s focus on lowering plastic consumption and achieving carbon-neutral packaging systems has accelerated adoption among e-commerce brands and logistics providers.

• The region’s recycling mandates and extended producer responsibility (EPR) laws are pushing suppliers to redesign packaging for circularity.
• The United Kingdom and Germany have seen a major surge in demand for sustainable corrugated and recycled-paper packaging, driven by high online purchasing behavior.
• Consumer expectations in Europe are shifting from just protective packaging to aesthetic, eco-conscious packaging formats, which is boosting premiumization within e-commerce shipments.

Corrugated Box Segment Leads; Plastic Holds Material Dominance

By product type, corrugated boxes account for the largest share of the market at 25.0% in 2025, forecast to grow at a 10.4% CAGR through 2035. Corrugated packaging is favored for its strength, stackability, cost efficiency, and strong recyclability profile—attributes that strongly align with Europe’s sustainability goals.

By material, plastic packaging leads with a 38.30% market share, supported by demand for lightweight mailers, protective films, and bubble wraps. Continuous innovation in recyclable and bio-based plastics is helping manufacturers balance environmental goals with structural performance.

Top Performing End-Use Sector: Electronics & Electrical

The electronics and electrical category holds approximately 38.30% market share and remains the fastest-growing application. The segment benefits from high product value and the need for shock-resistant and anti-static packaging during shipping.

Manufacturers are focusing on developing customized inserts, tamper-evident features, and impact-resistant packaging formats to reduce return rates and improve customer satisfaction.

Strategic M&A and Innovation Drive Competitive Advantage

The industry is experiencing a surge in mergers, acquisitions, and material innovation as packaging suppliers expand portfolios to serve sustainability-driven demand.

Recent developments include:

• January 2025: One Rock Capital Partners completed the acquisition of Constantia Flexibles, strengthening its position in sustainable and flexible packaging.
• November 2025: Coveris launched MonoFlex Thermoform, a recyclable alternative to conventional thermoforming films used in food packaging—marking a major shift away from non-recyclable materials.

Key industry players include

• Amcor Plc.,
• Sealed Air
• Mondi
• Berry Global Group
• Sonoco Products Company
• WINPAK Ltd.
• Constantia Flexibles
• ALPLA,
• Gerresheimer AG

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Outlook: A Circular, Technology-Driven E-Commerce Packaging Ecosystem

With Europe setting the pace on regulatory sustainability adoption and innovation in biodegradable packaging, the global market is shifting toward circular packaging models, automated fulfillment, and embedded technology features. As brands compete to deliver faster, safer, and environmentally conscious deliveries, packaging becomes not just a cost center—but a strategic brand differentiator.

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About Future Market Insights (FMI)

Future Market Insights, Inc. (FMI) is an ESOMAR-certified, ISO 9001:2015 market research and consulting organization, trusted by Fortune 500 clients and global enterprises. With operations in the U.S., UK, India, and Dubai, FMI provides data-backed insights and strategic intelligence across 30+ industries and 1200 markets worldwide.