Impact of e-commerce on European containerboard demand
Hämäläinen, Lotta (2019)
2019
Tuotantotalouden DI-ohjelma - Degree Programme in Industrial Engineering and Management
Tekniikan ja luonnontieteiden tiedekunta - Faculty of Engineering and Natural Sciences
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Hyväksymispäivämäärä
2019-12-09
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-201912056614
https://urn.fi/URN:NBN:fi:tuni-201912056614
Tiivistelmä
This master’s thesis investigates the impact of business-to-consumer electronic commerce (later e-commerce) on European containerboard demand. In e-commerce, products are usually shipped separately to consumers, which increases secondary package’s role in distribution. The main functions of e-commerce packaging are protection, convenience and brand communication. In addition, consumers are increasingly demanding sustainable packaging solutions. The most used packaging material in e-commerce is corrugated board, followed by flexible plastics. Corrugated board uses containerboard as raw material in liners and flutings.
The overall European containerboard market is well known but the impact of e-commerce on the European containerboard demand is unclear. Due to robust growth of e-commerce and lack of research on e-commerce packaging, the main goal of this research is to investigate the demand drivers for containerboard used in e-commerce packaging, paying attention to the growing sustainability concerns. The research was done for a case company, which is a global business advisor in industry and energy sectors. The objectives of this market research were achieved with literature review and by having in total 42 answerers in interviews and online survey.
The biggest drivers for containerboard demand in e-commerce packaging are overall economic situation and e-commerce development. As well, competition between packaging materials and growing sustainability concerns are big drivers. Fibre-based packaging materials are currently perceived as more sustainable than plastics due to recyclability. On the other hand, corrugated packaging may face challenges due to overpackaging, which needs to be reduced. Policies may arise due to sustainability concerns and they can have both positive and negative impacts on future e-commerce packaging demand. Big online retailers are followed in the market and their packaging decisions are observed by other retailers. Containerboard related trends in e-commerce packaging are requirements of lighter but stronger material and favour of recycled fibre-based containerboard.
E-commerce packaging material decision is made based on need of protection, cost, perceived sustainability, brand image and compatibility. Corrugated packaging has advantage over substitute materials when protection is needed. On the other hand, plastics and other flexible solutions are often less expensive than corrugated board, which means that they are usually favoured when protection is non-relevant. Packaging should be compatible with requirements of the supply chain, involving increase of automated packaging processes and intelligent packaging solutions. Good printability, opening experience and returnability are increasingly demanded from e-commerce packaging. As part of market research, the current demand of containerboard used in e-commerce packaging was estimated. Approximately 10% of the total containerboard demand in Europe is e-commerce packaging, of which 85% represent recycled fibre-based containerboard.
To conclude, the growth of e-commerce and overall consumption, together with need of protective packaging create the containerboard demand in e-commerce packaging.
The overall European containerboard market is well known but the impact of e-commerce on the European containerboard demand is unclear. Due to robust growth of e-commerce and lack of research on e-commerce packaging, the main goal of this research is to investigate the demand drivers for containerboard used in e-commerce packaging, paying attention to the growing sustainability concerns. The research was done for a case company, which is a global business advisor in industry and energy sectors. The objectives of this market research were achieved with literature review and by having in total 42 answerers in interviews and online survey.
The biggest drivers for containerboard demand in e-commerce packaging are overall economic situation and e-commerce development. As well, competition between packaging materials and growing sustainability concerns are big drivers. Fibre-based packaging materials are currently perceived as more sustainable than plastics due to recyclability. On the other hand, corrugated packaging may face challenges due to overpackaging, which needs to be reduced. Policies may arise due to sustainability concerns and they can have both positive and negative impacts on future e-commerce packaging demand. Big online retailers are followed in the market and their packaging decisions are observed by other retailers. Containerboard related trends in e-commerce packaging are requirements of lighter but stronger material and favour of recycled fibre-based containerboard.
E-commerce packaging material decision is made based on need of protection, cost, perceived sustainability, brand image and compatibility. Corrugated packaging has advantage over substitute materials when protection is needed. On the other hand, plastics and other flexible solutions are often less expensive than corrugated board, which means that they are usually favoured when protection is non-relevant. Packaging should be compatible with requirements of the supply chain, involving increase of automated packaging processes and intelligent packaging solutions. Good printability, opening experience and returnability are increasingly demanded from e-commerce packaging. As part of market research, the current demand of containerboard used in e-commerce packaging was estimated. Approximately 10% of the total containerboard demand in Europe is e-commerce packaging, of which 85% represent recycled fibre-based containerboard.
To conclude, the growth of e-commerce and overall consumption, together with need of protective packaging create the containerboard demand in e-commerce packaging.