Revenue from Packaging for Food and Beverages Sector Reaches a New High during COVID-19 with the Surge in Online Orders, Says PMR
Date : Apr 28, 2020 Author : PMR Editorial Staff
The COVID-19 pandemic has disrupted the supply chain across the food and beverage industry.
The COVID-19 pandemic has disrupted the supply chain across the food and beverage industry. With a steep hike in the at-home consumption and huge decline in out-of-home consumption, the COVID-19 pandemic is set to change the existent dynamics of the food and beverage sector. The changing customer behavior is influencing the demand patterns is all the associated aspects of the industry. Demand for packaging has spiked for shelf-ready products in the food sector owing to the changing purchase and storage patterns. Beverages companies that relied on brewpubs and restaurants are facing challenges in terms of demand and revenue.
The growing culture of social distancing has substantially increased the rate of online orders which is expected to lead towards long term adoption. The amplifying fear of contagion amongst demographics is boosting the e-commerce business in the food and beverage sector. Though the consumers are expected to resume their purchasing behavior after the COVID-19 pandemic, the convenience added by online shopping is expected to witness a surge in orders from the older population in the coming years. This inflation in online orders is creating growth prospects in the packaging sector.
Carton and container boards that are used to package products such as cereals along with single-use plastic packaging are expected to generate major revenue in the market. The sudden demand for fresh produce is also escalating the use of packaging materials for groceries. Owing to the boom in the grocery delivery business, retailers have increased their investment in online distribution channels. Local players in the market are revamping their marketing and production strategies to gain a prominent position.
Single-Use Packaging Gains Prominence
The ever-growing concept of sustainable packaging is witnessing a halt in progress during the COVID-19 epidemic. Though the customer sentiments regarding environment-friendly packaging solutions may have changed for the time being, the impact is expected to be short-lived. Moreover, the current lockdown and self-quarantine practices have slowed the progress in the production and developments in bioplastics and other innovative packaging materials. Reusability is discouraged in the packaging across the food sector as a precautionary measure in containing the corona virus. Also the growing demand for packaged fruits and vegetables in the pretext of avoiding transmission of corona virus is creating white spaces of growth for single-use packaging. PMR expects the stocking up of food and beverages to consume major single-use plastics in the future. The market for silver foil has shrunk with minimal usage in households. However it is expected to regain this depression in revenue with a surge in the use consumption of silver foil in-home delivery food items.
Advanced technologies such as nano-enabled packaging are expected to boost market growth. Intelligent packaging is experiencing a scaling demand in the market during the COVID-19 pandemic with a surge in RFID tagging. Marking has become highly important in packaging to keep a track of the sanitized products. The growth in the market is positively influencing the associated markets such as the packaging additives sector.
Chinese Market Influences Supply-Chain
Shutdown in the Chinese market left a major impact on the supply chain of packaging products. Heavy reliance on Chinese manufacturing facilities has disrupted the global supply chain. COVID-19 pandemic has inspired the countries to create self-reliant infrastructure in packaging, compelling them to review their policies and inventories. Consumer brand associations in different countries have urged their governments to relax federal guidelines regarding consumer packaging goods manufacturing facilities such as gathering and transport restrictions in suppliers and truck drivers. Besides being self-reliant, in light of the recent developments, the countries are moving their manufacturing units away from China. Such moves are made to avoid the clustering of suppliers in one region, which enhances the vulnerability to supply chain disruptions.
So far, the cases of transmission of corona virus through packaging have been negligible but the market is picking up pace over the high risks of transmission. PMR predicts any occurrence of COVID-19 transmission through packaging to have major implications on the market dynamics and consumer behavior. Demand for safety has aggravated in the packaging industry, especially across the food and beverage sector. During this period of the pandemic, the manufacturing facilities are following cleaning and sanitation protocols set up by health agencies. Inculcating such practices is expected to improve routine procedures in the long term.
Report Highlights: Global packaging for food and beverages market
- Parent market overview covering the impact of COVID-19 pandemic
- Changing market dynamics
- Market segmentation
- Market sizing and growth in terms of volume and revenue
- Latest trends and developments
- Potential revenue prospects
- Competition evaluation
- Strategic assessment of key market players and their market approach
- Overall performance matrix of the market for any given time period