Amazon’s Packaging Transition Boost for U.S. Flexible Plastics Industry
Thursday, May 16, 2019
Posted by: Alyce Ryan
Amazon’s decision to move towards lightweight flexible plastic mailers over its traditional cardboard boxes will likely set a trend for the rest of the industry, according to Wood Mackenzie Chemicals’ recent ‘Q1 2019 Flexible Packaging Global Market Overview’.
Commenting on Amazon’s announcement, Wood Mackenzie Chemicals Research Associate, Brendan Connell-French, said: “As the market leader in the U.S. e-commerce sector, Amazon is in a particularly powerful position to shape decisions on packaging preferences. The company currently controls just over 49% of the U.S. e-commerce market and nearly 5% of the total U.S. retail market, generating sales of over $250 billion in 2018. Few other companies have such industry influence to impact large-scale packaging trends and demand. Putting this into context, the U.S. e-commerce market accounts for 12% of all retail sales and is expected to grow to around 17% by 2022.
“Amazon, by far the largest shipper of packaged goods in North America, will likely set a trend for the rest of the industry; although one that will probably be adopted slowly and steadily. Crucially, the move signals a departure from a traditionally conservative packaging industry in North America that is often hesitant to adopt wider and more varied flexible packaging applications,” added Mr. Connell-French.
Flexible plastics packaging – what are the benefits?
Amazon cite a number of environmental benefits to back their decision, including a reduced consumption of energy and natural resources during production, reduced CO2 emissions, and fewer vehicles required during transportation. “The usage of lightweight materials results in less end-of-life waste and even with low recycling rates, flexible packaging often generates less material losses than alternatives,” continued Mr. Connell-French.
As highlighted in the Wood Mackenzie Chemicals report, Amazon is also currently working on a cushioned mailer (typically a paper//PE laminate) that is fully recyclable in paper recycling streams, reinforcing its new direction away from carton board. The company confirmed that, after continually working to improve packaging options, it reduced global packaging waste by 20% in 2018.
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