Latest Happenings in Business World
There are both advantages and disadvantages in all the sectors due to COVID–19. But the packaging sectors around the world have more significant benefits than other industries that are affected by the Corona Virus pandemic.
As many countries are under shut down due to this deadly virus, stock up on necessary supplies such as medicines, dairy products, food, sanitizers, face masks, disinfectants, and many more has been in high demand. All these products require packing, and their production has been higher than ever before. The consumers and customers around the world prefer packed products rather than initially available and sold lose products such as fruits, vegetables, etc. Hence, the demand for the packaging industry has increased due to the pandemic.
Plastic is back in business due to the pandemic
In the packaging industry, by material, the plastics sector has the highest demand. And a lot of producers and companies who initially used other types prefer plastic for apparent health care safety, as it is much safer, more affordable, long-lasting and for years the medical industry has been using plastic for packing the medicines. Plastic also helps in stopping the spread of the diseases and helps keep the products packed in it from reacting, getting spoiled and rotting. During the shutdown period, the products are supposed to have a longer shelf life and expiring soon would lead to starvation as the public would not be able to buy new replacements for the expired as most of the production units are closed. The employees are also asked to stay in quarantine and self-isolation.
Coronavirus helped businesses that are about to shut down
Most of the packaging companies who were on the verge of shutting down before the outbreak of the virus are now back in the market as the demand for this sector has increased drastically. These companies are expected to stay in the business longer even after the pandemic is over because people have understood the value for the packaging for products and how they are necessary to keep the hygiene going. Many have become even more health-conscious and are preferring to buy packed products rather than those which are sold also lose if they are costlier.
Drawbacks in the industry
Even though the packaging sector is having high demand and more advantages, there are drawbacks as well. The major hindrance for this industry is the shutdown, as the employees are asked to stay at home during the pandemic. Due to this, many of the packaging units are closed, or the production is less compared to before.
The packaging sectors who pack products other than daily essentials and medicines are all shut down and are in loss, as the product requirement has almost become zero. People are only willing to stock up on the essential items for survival.
Moreover, most of the global packaging conferences and events such as Germany based Interpak and Amsterdam based Plastics Recycling Show in Europe have been cancelled and postponed due to the quarantine. Postponing and cancelling these events has caused a lot of loss in money as well the decline in international mergers which could have happened if the conference was held, owing to a massive loss in the business.
Demand to Keep up
Many packaging companies who are not able to increase their production as per the high demand will not be able to sustain in the market after the pandemic is over because most of the organizations that relayed on those packaging firms have already shifted to new companies to full fill the demand in the market.
China, no longer the market leader
China, which is the leader in the packaging sector, lost its clients, and its economy is likely to decrease up to 50% during and after the pandemic. This is because all the companies who were relying on China for packing are now shifting their businesses to other second world countries such as India. Also, after the control of coronavirus outbreak, many companies prefer to rely on other nations rather than China.