The lifecycle of e-commerce packaging has been changing in the past years considerably, reflecting the growing awareness in the field of the impact on the environment and consumer demand. The problem of waste is one of the most pressing issues facing our society, as well as the world economy’s sustainable development.
As online shopping has been growing significantly during the previous years of the pandemic, the demand for appropriate packaging solutions has also increased. At the same time, the focus of business has been shifted to reconsider approaches to processes related to packaging, from their production to disposal.
This paper covers the key stages of the lifecycle of e-commerce packaging, using the models from the previous cases and projecting them to future developments to show how the industry deals with its sustainability challenges and the innovative solutions applied.
Initial Stage: Packaging Production and Material Innovation
The lifecycle of e-commerce packaging starts with the production of its components, which was traditionally considered one of the most critical stages. In the past, such materials as plastics, which were non-recyclable, comprised the majority of packaging materials. However, the recent years have seen that this tendency has been changing, and sustainable packaging has been taking the global market by storm.
As of the year 2021, it was reported that approximately 29% of all e-commerce packaging is comprised of recyclable materials. This data is projected to grow, reaching some 45% by the year 2025. There have also been important innovations in the field of packaging design that have important applications in reducing the waste during the aforesaid processes.
The introduction of biodegradable materials into the processes was also a breakthrough decision, and now companies like Uniqlo and Amazon have committed that by the year 2025, their packaging will be comprised only of biodegradable materials. The figures support such decisions, as they reported that their implementation could help to reduce the annual landfill waste by some 20 million tons.
With the surge of environmentally friendly bans and measures against the production and use of single-use plastic, the packaging industry has come under close scrutiny. According to the life cycle analysis of packaging materials, the carbon emissions corresponding to the packages demanded by e-commerce in 2017 were 15 percent of the carbon footprint of online shopping.
This piqued consumers’ attention, leading to the development of a new movement: sustainable logistics in e-commerce. As stated by a global survey, by 2030, 50 percent of all packaging production is going to run on renewable power, eradicating the industry’s remaining carbon emissions. This is a must-have for the final stage in the e-commerce packaging life cycle in order to decrease the environmental impact of the production process.
The Shipping Phase: Innovations and Challenges
Once the production of the packaging is finished, the next stage in the life cycle of e-commerce packaging begins: shipping. The movement of goods from warehouses to final customer destinations is crucial as it involves the distribution emissions.
In truth, as stated in the Environmental Defense Fund, transportation is the fastest-growing source of greenhouse gases. In 2020, delivery vehicles were responsible for 36 percent of urban emissions from transportation. Such problems have influenced businesses to create smart packaging technologies. They help to solve the particular waste challenge related to the transportation phase:
Tracking conditions of packages shipped to adjust the distribution of packages and reduce the number of returned products has a great potential to reduce the waste by 25 percent. Aside from the improvement of the waste situation in landfills, the importance of e-commerce packaging sustainability lies in convenience for the sellers and for the buyers.
For the former, it is not only about disposal that brings logistic waste reduction but the elimination of packaging expenditure. For the buyer, it is about the reduction of excess materials in the packaging. Minimal packaging employs as little material as possible to deliver the goods from point A to point B.
In 2021, it was determined that there could be a 30% reduction in material usage with minimal packaging. By 2025, 40% of e-commerce packaging will be of minimalistic design, furthering the push into the optimization of material use. As such, the most meaningful and impactful process in terms of delivery is beneficial to the environment, the companies, and the clients.
The Final Stage: Packaging Disposal and Waste Management
However, the final stages of packaging transportation are where most of the environmental wear and tear is caused. After the consumer has received the goods, the packaging needs to be disposed of in a manner that would not harm the environment. That, alongside the reduction of the general amount of waste, takes time, effort, and sometimes even money.
It was estimated that over 10 million tons of waste packaging is produced by e-commerce, and, if not done away with, this number will go up to 15 million by 2025. To deal with the issue, businesses are creating recycling programs and influencing people to dispose of waste via the program. In many cases, the information about how to recycle and dispose of the material is given with the product. Such an influence strategy is expected to increase recycling of e-commerce waste from 20% in 2023 to 60% in 2028.
An increasing number of companies adopt biodegradable packaging or use the circular economy approach for the production of their materials. Considering biodegradable packaging first, which is one of the most widespread and crucial steps in packaging materials since all human-made materials eventually become waste, particularly packaging waste, biodegradable options are highly sought out by many manufacturers and packaging companies. Currently, they have become a popular solution for materials that generally end up in landfills.
Future Trends and Sustainable Innovations in E-commerce Packaging
According to one reliable source, the implementation of biodegradable materials in packaging can reduce the input of waste materials into landfills by 10 million tons every year. This is a long-term achievement, but as companies gradually switch to such options, there is no doubt that by 2030, 30% of all packaging waste by e-commerce companies will be made from biodegradable materials. Another change that is currently actively implemented is a switch to a circular economy in the production, use, and disposal of packaging materials. Currently, companies are taking measures to minimize landfill and non-recyclable waste.
For instance, one of the main players in the beverage industry, the Coca-Cola Company, has announced its plans to achieve 100% recyclability of its packaging by 2025. This is a nationwide tendency that by 2035 will result in 70% of e-commerce packaging products being made of recyclable materials. At the same time, smart packaging solutions are also expected to enter the market, and by 2030, 40% of all packaging will be integrated with technologies for tracking and efficiency measures.
Shaping a Sustainable Future for E-commerce Packaging
As the stats above show, the life cycle of e-commerce packaging is bound to undergo a series of considerable changes in the course of time. The efforts made to protect the environment will affect the major part of the production cycle, making packaging not only more eco-friendly but also more cost-efficient as a part of the supply chain.
Moreover, the changes are also triggered by the necessity to meet the needs of customers. As the need to protect the environment grows in urgency among the general public, e-commerce businesses are bound to alter their strategies, making their packaging solutions more sustainable.
