Learn about the outlook for the paper and cardboard industry in the region and some tips for choosing the right corrugated packaging and packaging CBD boxes according to your products and business needs.
E-Commerce Drives the Growth of the Corrugated Market
Online sales are redefining the retail sector around the world, as well as the role and value chain of packaging sold for e-commerce. This presents new business opportunities for packaging printers and material suppliers, especially in the corrugated sector.
In fact, according to the report The Future of Corrugated Packaging to 2023 published by the market research firm, in 2019 alone the total value of packaging for electronic commerce reached 37.5 billion dollars, and it is expected that in 2023 this figure reaches 63.3 billion.
It should be noted that the report does not contemplate the e-commerce boom due to the COVID-19 pandemic, so this figure may be significantly higher, especially if one takes into account that purchases through electronic channels in Latin America they increased on average 300% in the first month of confinement; and that the average week of growth in Brazil and Mexico, the two largest markets in the region, is 65% and 500% respectively.
Opportunities and Challenges for Converters
The logistics chain is becoming more complex, and in some cases e-commerce packages are handled up to 20 times or more during a standard delivery. Added to the scale of the warehousing and delivery systems required for e-commerce, there is a considerable demand for robust and cost-effective packaging solutions in this sector.
The challenges go beyond providing corrugated cardboard packaging capable of supporting packaging handling throughout the logistics chain. Another aspect to take into account is cost-effectiveness. Customers expect their packages to come in CBD Box appropriate to the content, but the trend is also a response to the adoption by the logistics chain of dimensional weight price (DIM) because the cost of a shipment can be affected by the amount of space it occupies in the transport vehicle, rather than its actual weight.
Three Main Variables
The producers of packaging for sales through online channels must pay attention to three main variables:
Speed: converters must be able to quickly meet the needs of retailers.
Quality: quality control throughout the entire production line is essential to prevent product damage along the way and returns from occurring.
Flexibility: the production line must be flexible and with a modular approach to adapt to changes in demand.
However, the challenges for converters don’t end there. On the one hand, there is a greater demand for reusable boxes, which are more complex to manufacture. On the other hand, to offer a better unboxing experience, technologies must be implemented that allow the creation of more innovative designs, without affecting the final cost of the packaging.
Manufacturing for E-Commerce Is Very Demanding
This is just the beginning. In a market where competitiveness is key, creativity, productivity and efficiency when producing CBD Packaging boxes for e-commerce channels them will become a decisive advantage.
The corrugated cardboard industry has a bright future ahead of it. The rise of e-commerce in the region, combined with its environmental benefits over other materials, and the potential in terms of personalization of the shopping experience, makes it a leading player in bringing products from retail stores to the end customer.