Sustainable packaging and paper supplier Mundi has released the results of its fifth annual e-commerce report, which details the overall trends, analysis and customer attitudes in e-commerce development, as well as how packaging affects their entire experience.
The annual online survey was conducted in the last quarter of 2023 and covers the views of 6,000 consumers. This research and the resulting report are based on the desire to provide e-commerce brands with key information that best meets consumer needs. This latest report also includes country-specific results for six key markets: Czech Republic, France, Germany, Poland, Sweden and Turkey.
Nedim Nishik, Director of e-commerce at Mondi Group, said: "We felt the need to share more than just packaging trends, but also reveal spending habits, shopping frequency, social commerce usage, and behaviors related to recycling and reuse. The result is a treasure trove of data useful to every e-commerce company, not just those trying to meet consumer packaging needs, but also those influencing the entire experience. We also hope to promote cooperation among the packaging industry, e-commerce platforms and other key stakeholders to meet consumer expectations and sustainability efforts."
Emerging trends and new insights include what is happening around social commerce, re-commerce and the intergenerational sustainability movement. Overall, the report looks at four key areas - consumer online shopping behavior, attitudes toward packaging and unpacking experiences, perceptions and behaviors toward recycling and reuse, and the future of e-commerce packaging.
01 Social commerce drives a lot of buying
Nearly half (44%) of consumers have made a purchase through social commerce in the past 12 months, with Facebook and Instagram accounting for the majority of purchases, compared to 20% for TikTok. This trend is particularly strong among millennials and Gen Z, who spend money primarily on fashion. In the past 12 months, the younger generation spent the majority of their money on fashion products (about 60 percent), while the combined spending on cosmetics, beauty, sports and leisure, technology and home goods was between 30-40 percent.
02 The overall frequency of online shopping is declining, and Gen X is looking for the best pricing
Despite the decline in shopping frequency due to economic restrictions, 38% of consumers have maintained their online shopping habits as they seek better prices and value. In 2023, the frequency of online shopping decreased slightly. This could be because shoppers continue to return to stores as buying behaviour has returned to pre-pandemic norms, or it could be because shoppers are buying less online as they have to cope with an increase in the cost of living. But they still shop online regularly, with a quarter doing so at least once a week. The time-saving nature of online shopping and the convenience of home delivery are particularly appealing to all demographics, and Generation X is known to be the most cost-conscious compared to other generations.
Nedim Nishik added: "This survey shows that social commerce is becoming more mainstream, and fashion is clearly a growth driver. We are seeing online retailers very focused on the digital shopping experience, and a seamless experience with social media channels is a must for the future."
03 Packaging quality and recyclability are important factors in the purchase decision, who bears the return cost?
Customers prioritise packaging quality and environmental protection, with 88% of customers attaching importance to protective packaging and a large proportion of customers believing that recyclability is important. There are regional differences, with Turkish consumers showing high demand for resealable packaging. The growth of the e-commerce market indicates consumers' preference for reusable packaging, which means that e-commerce retailers need to consider post-purchase behavior and meet the sustainability requirements of the circular economy. Traditionally, returns are free, as this encourages buying. With rising costs and related sustainability issues, 39 percent of respondents said they don't want to pay for returns, with millennials and Gen Z most willing to shoulder this cost.
Almost half of people will not buy a brand again if the packaging does not meet expectations
Not surprisingly, given that they are generations who grew up with the concept of unpacking, not just unpacking, millennials and Gen Z again highly rate the importance of packaging to the unpacking experience - two-thirds (66 percent) of Gen Z and 65 percent of millennials see it as important or very important, That compares with just 46 percent of baby boomers. A negative unpacking experience, of which excessive packaging was the most mentioned grievance, showed that nearly half (47%) said it could deter them from buying again. In contrast, 45 percent said they would not buy a brand again whose packaging was difficult to recycle.
Overall, there is a strong focus on sustainable and environmentally friendly packaging without compromising paper quality, protection or the overall unboxing experience. The report indicates that nearly 60% of consumers expect to use compostable or recyclable packaging in the near future.
