As COVID-19 has impacted every field of life in different ways, the packaging industry and custom packaging solutions are also no exception. In comparison to other business sectors and industries, when it comes to the packaging industry, we see different results and impacts of the coronavirus pandemic. It has impacted the industry in both positive and negative ways at the same time. Here are some of the impacts that it has made on the packaging sector and related businesses.
An Increase in Demand
According to recent surveys and trends of product demands, it can be easily seen that the demand for packaging solutions has greatly increased during the pandemic. It has a very valid reason behind it. This is so because of shutdowns and imposed protocols to revoke the spread of the coronavirus; customers mainly become dependent on eCommerce businesses and brands to fulfill their daily needs like foods, medicines, and a lot of others. Increased demand for such supplies and products has encouraged eCommerce brands and businesses to get more and more packaging solutions such as Custom Printed Boxes to cope with the increased demand for their products.
According to reports, just in the USA in 6 months of this year affected with the pandemic, a rise of 30% has been seen in the online spending of customers in comparison to the same period for 2019. This increase in the demand for eCommerce products has given a swift rise to packaging demand as well. An increase of $103Billions has been forecasted in the pandemic period as the industry size can increase from $909.2 billion in 2019 to $ 1,012.6 billion by 2021. So, from a broader perspective, when we consider the impacts of Covid-19 on custom packaging demand, we can consider is positive and encouraging.
Coronavirus Helped Companies That Were About To Shut
Before the coronavirus outbreak, most of the packaging suppliers and companies that were about to shut are now back in the market and are taking advantage of drastically increased demand for packaging solutions such as custom printed boxes. Recent surveys and studies re revealing that the coronavirus has made people aware of the importance of packaging for their products and benefits to use packaging outfits, specifically to businesses that were previously dealing with their stores, and now the pandemic has enforced them to go online. This deliberates that such companies will keep enjoying these raised demands for packaging even after the COVID-19 because people have understood the value of the packaging for products. Many people have become even further health-conscious and favor to buy products packaged in wholesale boxes instead of those which are vented also fail if they are expensive.
Change From Sustainability To Established Materials
In recent years, sustainability was the leading trend in the packaging industries; however, the coronavirus crises is giving a new shape and reverting the transformation of packaging to old solutions mainly. This transformation involves a number of aspects. One of the major elements that are causing this reversion to established packaging solutions and materials is the sudden rise in the demand for packaging due to increased demand for online businesses and enforced protocols due to pandemic.
It has been realized that most of the sustainable packaging suppliers are in their bingeing and such suppliers do not have sufficient infrastructure and materials to meet the raised demand for packaging solutions like wholesale boxes made out of cardboard and other sustainable materials.
Another reason behind this transportation can be customers’ concerns about the virus spreading possibilities with sustainable packages solutions, although WHO and the Centers for Disease Control have found no evidence of virus spread with these boxes. The point that people made about it is that on cardboard and other alike materials, coronavirus can survive for about 24 hours, and hand to hand transferal of these wholesale boxes can make them vulnerable to it.
Supply Chain Issues
One of the major issues that coronavirus has created for packaging suppliers of all kinds is the supply chain issue. The set protocols for businesses during the COVID-19 has enforced businesses to shut down their production house and others related functions if they are not dealing with FMCGs and essential products like foods and medicines, to revoke the virus spread. It has affected the supply chain of packaging manufacturers severely and is causing them losses despite increased demand for custom packaging. Lack of required materials due to issues in the supply chain for producing packaging solutions can cause a lot of companies a major loss.
As it cannot be denied that coronavirus is setting new normal and have changed the mode of every industry and business, the packaging industry and businesses are also has been impacted with it. It has impacted the packaging sector is both ways. Covid-19 has increased demand for packaging all over the world; however, associated restrictions and limitations have also affected packaging businesses too such as issue sin supply chain and transformation of packaging demand from the sustainable custom printed boxes to established packaging solutions made out of plastics and other kinds of packaging materials.