E-Commerce Trends 2021
The year 2020 boasted unprecedented growth in e-commerce sales. Given the effects of the pandemic, such as lockdowns, travel bans, and retail closures, we have seen an acceleration in e-commerce in the past 12 months with an expectation for this trend to continue into 2021 and beyond.
With global online sales expected to surpass $5.5 trillion by 2023, experts are anticipating a profound impact on packaging demand, especially in the corrugated industry as it represents 80% of demand in e-commerce.
Here are the top predicted trends for e-commerce in 2021
1 ) Sustainable Packaging
Sustainable packaging is becoming a higher priority for both brands and consumers – more now than ever before. Brands have been following shifts in consumers’ buying habits, a higher focus on corporate ethics and sustainability in recent years. Although this environmental trend has been mostly identified with millennials they are not the only age group concerned with global warming and ultimately, climate change. According to a 2018 Nielsen survey, 81% of global consumers say they would change their consumption habits to reduce environmental impact.
Senior Vice President of the Fibre Box Association, Rachel Kenyon, told Waste Driver, “proper recycling has become more critical due to pandemic trends. When commercial collections stalled because of COVID shutdowns, the corrugated industry recognized the need for greater residential recycling. The industry needs clean, dry corrugated to ensure we maintain a balanced system”. With the increased volume of shipping packages, companies are going to incorporate more sustainable, recycled material into their business practices. The demand for recycled material coupled with consumers’ values for sustainability will ultimately lead to an increase in eco-friendly packaging.
Learn more about how the Canadian paper packaging industry supports environmental sustainability (https://www.ppec-paper.com/environmental-sustainability/)
2 ) The Unboxing Phenomenon & Digital Printing
Businesses that are direct to consumers are getting creative to stand out in the crowded e-commerce space. Direct To Consumer (DTC) companies are investing in custom branded packaging with digital printing initiatives, to provide the customer richer, more personalized experiences.
The “unboxing” trend is propelled by social media and features influencers unboxing their shipment on camera. This is often used for subscription-style boxes to attract new customers online. Manufacturers are recognizing the great opportunity for custom branded boxes to be shown to thousands of people on live streams and social media.
3) Non-traditional markets now utilizing e-commerce
We are familiar with traditional e-commerce businesses, such as the beauty space or retail. However, now experts are seeing other markets participating in the e-commerce trend. The most notable example is the food and beverage market. Amazon, Hello Fresh, Chefs Plate, or even brick and mortar restaurants have been offering box food delivery since the onset of COVID-19 related restrictions. How Life Unfolds states, “By 2023, online grocery spending will reach $129 billion, nearly 10% of total grocery sales. Safe shipping of beverages will grow in importance along with the e-grocery market, prompting more inventive protection measures”.
How is Royal Containers supporting these growth trends?
Based on the researched trends for e-commerce in 2021, as a box manufacturer, we have seen a similar shift locally. There has been a dramatic increase in the required usage of corrugated within our existing customer base, and we have seen an influx of new customers coming from industries that historically did not participate in e-commerce.
Royal Containers has strong roots in sustainability and is proud to be one of the corrugated converters using only 100% recycled containerboard in our products. Through the process of vertical integration, Royal Containers is involved in every step of the recycling-cycle of corrugated. We are thrilled to see the global trend towards must sustainable packaging.
Businesses across the globe are pivoting to selling online and relying on their brand recognition to make the digital transition. At Royal Containers, we are incorporating more print, logos, and branding elements into our incoming box orders. As a B2B manufacturer, branding is increasingly important because when consumers see a nice product, they often inquire about the source. Royal is equipped to manufacture in-house all packaging products from large quantity high-speed flexo boxes to single box digital print. Resilient and ready to accommodate all our customer’s changing needs.
We believe the demand for paper and boxes will continue from generation to generation, and our commitment to sustainability is key. Paper is one of the few resources that is truly renewable and will need to continue the recycle-cycle to keep up with increasing demand.
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