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27 Mar 2017


2017 Sales of Shipping Packages to Reach THB5.6 Billion, Buoyed by E-Commerce (Current Issue No. 2833 Full Ed.)

 Thriving e-commerce, especially business-to-consumer (B2C) trade that has grown 15-20 percent p.a. – equivalent to THB210 billion p.a. (retail sector only) – has helped bolster sales of shipping packages (B2C) substantially over recent years. We at KResearch expect that sales of B2C e-commerce shipping packages will reach perhaps THB5.6 billion in 2017, surging 24.4 percent YoY.

Over the next three years, we project that that figure will top around THB8-9 billion in line with growth in B2C e-commerce retail business, valued at some THB350 billion (if the planned implementation of e-commerce tax has only a limited impact on e-commerce business). Sales of paper and plastic for packages will benefit significantly from this trend because they are the materials of choice for packaging goods prevalent online. Moreover, they can protect products better and are cheaper than other packages.

E-commerce packaging design will likely be a challenge for some packagers ahead, because good packages must not only be able to cushion external shocks and save on shipping costs, but must also be attractive to the recipients, as well. Clearly, packaging manufacturers must be capable of meeting a smaller volume of orders from e-commerce business that are mostly SMEs.

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