200 billion boxes a year. The market that is killing the planet
In Russia, more than 2 billion boxes of goods were sent to customers in 2022 (200 billion boxes worldwide). In the first three quarters, growth was 43% compared to the previous year. If we add a record 4th quarter, then the figure generally flies into space.
E-commerce in Russia (and throughout the world) is growing like crazy. And this opens up huge opportunities for markets serving the commodity business. In particular, the packaging market.
We work as an agency with several packaging companies. For example, with one of the market leaders, Fakel. And, of course, such companies grow naturally due to the growth of the market as a whole.
But in the US, there was a startup boox.eco, whose business model I liked because of its environmental friendliness and bid for a revolution. They raised a $12.8 million investment and are now preparing to turn the market around. In the article, we will talk about their startup. I can say right away in Russia they are not and most likely will not be. The business model itself is interesting.
What is the point?
Worldwide, one million trees are cut down every day to make boxes for the delivery of goods and products. The number is round, but plus or minus the way it is, because more than 200 billion boxes of goods were delivered around the world last year.
For example, in 2021 – 159 billion. And from 2014 to the era of marketplaces, this is almost a fourfold increase. In short, the market will continue to grow. More and more trees will be cut down. The planet will get poorer, and so on.
But boox.eco came up with the idea of producing reusable boxes for parcel deliveries. Even after these boxes fail, Boox knows how to recycle them – to make new boxes from them, ready for a new cycle of use.
One box of Boox can be used up to 10 times and then recycled. The widespread use of reusable boxes can reduce the number of trees cut down by an order of magnitude.
Got the order and you can send the box back where it will be cleaned and sent to a new cycle or recycled.
But, more interestingly, you can also put old things in it, they will also be recycled or sold. As a result, the company takes care of the environment conveniently.
However, there are also goodies for marketplaces and online stores:
Large selection of colors and sizes
Boxes come folded for easy shipping.
The patented technology does not involve the use of adhesive tape. Boxes are sealed by themselves (I didn’t understand how, but it’s written on their website)
As I said in Russia, this company simply does not exist. But you can create an analogue for our country and participate in the growing packaging market.
Shipping boxes to the US is no problem. 40,000 partner outlets pick up boxes from customers. We can do this at the PVZ and post offices.
Of course, we need a technology for sending further and distribution, but due to the small volume of the box when folding and a high-quality technological solution, everything should work out.
Companies such as Sephora, Unilever and Birchbox now use the office and ship more than 1 million boxes a year.
To summarize:
Huge, wildly growing market.
Annual contracts
Caring for the environment
It will definitely take off in the states. What we have, I don’t know. The recycling market is very small and seems to be monopolized. At the same time, some giant like SDEK may well pull off such a corporate startup with its own capacities or invest in it.
I have traveled most of the world. Everywhere I see that we wildly littered the planet. In Bali, you can meet a beautiful sunset on the ocean, but with your head down, plunge into a mountain of garbage. In Europe, you can swim by raking plastic bottles with your hands. Ripped clothes, bags. It’s everywhere.
The ecological catastrophe has already happened. We will not leave beautiful oceans for our children and they will not enjoy nature. The planet is becoming less habitable.
And with the growth rate of the huge e-commerce flywheel (which I am also involved in), we will meet old age in the trash can that used to be called home.
Wrote a few more Zero Waste Startups in e-commerce in your telegram channel. Come on in and let’s talk about it.
