The envelope market is predicted to expand its roots at an average CAGR of 3.1% during the forecast period. The market is likely to hold a revenue of USD 1.9 billion in 2023 while it is anticipated to cross a value of USD 2.67 billion by 2033.
FMI analysis shows that paper envelopes might account for a market share of more than 70% and are estimated to reach USD 1.6 billion by 2032. With the increase in the demand for packaging and mailer services for various types of goods, sales of paper envelop are projected to soar.
By end use, envelopes are exponentially consumed for postal services and are estimated to expand 1.3 times the current consumption, by 2032. This is due to the recent developments in the postal delivery industry facilitating free shipping envelopes to consumers.
Light and pocket-friendly envelopes designed specifically for recycling are being widely used by consumers. Firms are now focusing their efforts on including environment-friendly materials in their manufacturing since it uses less storage space, and shipping is also economical.
North America and Europe are projected to see an increase in purchasing power over the years due to rising wages and an increased standard of living. In the foreseeable future, the envelope industry in the Middle East and Africa is projected to see significant expansion.
| Attribute | Details |
|---|---|
| Envelope Market CAGR (2023 to 2033) | 3.1% |
| Envelope Market Size (2023) | USD 1.9 billion |
| Envelope Market Size (2033) | USD 2.67 billion |
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The worldwide envelope market had been steadily growing over the past few years and grew at a CAGR of 2.0% over the forecast period from 2018 to 2022.
Over the forecast period, the global envelope market is predicted to exhibit a CAGR of 3.1%. Envelopes are widely used to pack flat items like letters, cards, pamphlets, and mail. For e-commerce businesses, using envelope has emerged as both a sustainable and cost-effective packaging solution. In the next few years, this is projected to increase the demand for envelopes.
Since electronic communication has grown in recent years, the amount of correspondence sent by envelope has decreased significantly. Nevertheless, the demand is expected to grow globally in the context of the shipping industry's requirements. For shipping light items, courier businesses such as FedEx, Express Mail, and others are always in need of envelopes.
By pursuing opportunities in customized envelopes and packaging, companies in the envelope paper industry are developing new revenue streams. Manufacturers are benefiting from additional opportunities created by merchandising displays and other innovative branding methods.
Packaging is one of the primary marketing strategies that help stakeholders in the value chain generate exponential sales. As a result, providers are increasing their customized envelope offerings to suit surging demand from various industries. Furthermore, in the envelope market, problem solvers, practitioners, and innovative designs are becoming increasingly popular. Open-end envelope, on the other hand, is gaining traction in the market.
Packaging firms are increasingly focusing on technologies that deliver flexible, form-fitting, and lower-profile packaging options and other new solutions. These help brands communicate with their target audiences. Envelopes are gaining popularity as a practical and innovative way to preserve the goods inside while promoting the brand from the outside.
Principal Consultant
The global envelope market is expected to witness promising growth on the back of various factors. Some of the key factors that have a direct impact on the sales of envelopes are government regulations, competition scenarios, consumption of envelopes across various countries, etc.
It has been witnessed that although a well-developed cluster of manufacturers is present in countries of South Asia and East Asia, there are few restrictions to the entry of new players.
The government initiatives and support for establishing start-up businesses and funds provision have significant contributions to tier-3 players’ growth. However, as this is a fragmented market, rivalry among manufacturers is expected to grow.
The consumption of envelopes is increasing in multiples due to significantly active postal services, especially in rural and distant areas. In other regions such as North America and Europe, the stringent regulations on single-use plastic are expected to diminish demand for the plastic envelope. Further, consumers in these regions are adopting paper envelopes and therefore, supporting maintaining environmental equilibrium.
In terms of sales and consumption, countries in Asia are expected to hold the leading share in the global envelope market during the assessment period. Countries in America and Europe are expected to witness moderate growth in demand for envelopes.
Key players can witness growth opportunities in the untapped markets of the Middle East and Africa (MEA) and Oceania, as less competition among key players is witnessed.
| Countries | Revenue Share % (2022) |
|---|---|
| The United States | 11.7% |
| Germany | 4.1% |
| Japan | 7.6% |
| Australia | 2.1% |
| North America | 20.2% |
| Europe | 24.4% |
| Countries | CAGR % (2023 to 2033) |
|---|---|
| China | 3.3% |
| India | 3.7% |
| The United Kingdom | 2.3% |
E-commerce Expansion Coupled with the Presence of Established Postal Services Position India as a Leading Market
India’s envelope market is expected to witness a gain of 70 bps of the current market share in the next three years. As per the annual report published by India Post, Government of India, the Department of the Post has 156,721 postal offices and it is the large postal network in the world. Out of these, nearly 90% of postal offices are present in rural areas. The regional market thrives at a CAGR of 3.7% between 2023 and 2033.
The category-wise, out-of-mail traffic for different articles such as postcards, letters, parcels, registered newspapers, and many others; letters require a maximum quantity of envelopes and are recorded at 61% from 2019 to 2020. Based on these factors, it is expected that notably increasing courier and postal services in remote places are resulting in high consumption of envelopes.
Asia Pacific has emerged dominant as e-commerce orders and couriers are quite high in India and other nations of Asia. The region accounts for more than 40% of global demand. In addition, India has several envelope makers and printers that sell their products at low costs.
Innovative and Advanced Material-Based Envelope Demand is high in the United States
The United States envelope market is expected to grow by 1.3 times the current value in the next decade. Although it is a saturated market, innovative and advanced material-based envelopes are grabbing the significant attention of consumers. Moreover, consumers are exhibiting high demand for a self-seal envelope that ensures product safety and provides tamper evidence too.
Printed and completely recyclable envelopes are winning the race. The regional market held a market share of 11.7% in 2022 while the whole North America region held a market share of 20.2% in 2022.
Some of the leading players are planning to include cold seal technology in the envelope. Manufacturers are expanding their production facilities to accommodate material-padded envelope manufacturing.
Further, an increase in the number of E-commerce platforms is also creating growth opportunities for the key players in the region. Based on these factors, promising growth of the envelope market in the region is expected in the next decade.
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| Category | By Material Type |
|---|---|
| Leading Segment | Paper Envelope |
| Market Share (2022) | 69.5% |
| Category | By End User Type |
|---|---|
| Leading Segment | Postal Services |
| Market Share (2022) | 75.6% |
E-commerce Expansion Pushing Sales of Paper Envelops
During the forecast period, a paper might emerge as the preferred material for envelope manufacturing, exhibiting growth at a CAGR of 2.3%.
Focus on sustainability is going to result in many companies steering away from plastic to paper as a key material. The demand for paper envelopes is also likely to grow as the demand for eco-friendly e-commerce packaging grows worldwide.
Postal Services might Account for Maximum Envelope Sales through the Forecast Period.
As per the Federation for Envelope and Light and E-Commerce Packaging in Europe (FEPE), the total consumption of envelopes in 2018 was recorded as 46 billion units, and direct mail in Europe accounted for 30% of the mail market. It is also outpacing other segments such as business emails, social & other mail, and public sector mail.
FMI analysis states that during the forecast period, the postal services end-use segment is anticipated to expand at a CAGR of 2.4%, by 2033. The segment held a market share of 75.6% in 2022.
The presence of a large number of companies has rendered the envelop market fragmented. North America and Europe are home to some of the leading envelope manufacturers and they consistently offer top-grade quality and experience. Leading e-commerce brands are shifting to sustainable packaging solutions, which might aid the overall market growth.
Market Developments
The projected CAGR of the envelope market by 2033 is 3.1%.
The projected market value for 2033 is US$ 2.67 billion.
The market is estimated to secure a valuation of US$ 1.9 billion in 2023.
The key consumer of the envelope market is the postal services industry.
The Asia Pacific market is growing remarkably fast due to the growth in the online shopping industry.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Material Type 5.1. Paper 5.2. Plastic 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Thickness 6.1. Less than 75 GSM 6.2. 75 to 100 GSM 6.3. 101 to 150 GSM 6.4. Above 150 GSM 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-use 7.1. Postal Services 7.2. Logistics & Shipping 7.3. E-commerce 7.4. Institutional 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Royal Ltd 16.2. Cenveo Worldwide Limited 16.3. BETA (ShenZhen) Package Products Co. Ltd 16.4. Mehta Manufacturing Company 16.5. French Paper Company 16.6. Quality Park Products 16.7. Heinrich Envelope 16.8. Sheppard MFG CO. 16.9. Northeastern Company 16.10. Ohio Manufacturing Co. 16.11. Neenah, Inc. 16.12. Capital LLC 16.13. The Encore Group 16.14. Heritage Ltd. 16.15. Mayer-Kuvert-network GmbH 17. Assumptions & Acronyms Used 18. Research Methodology
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