According to Infiniti Research’s latest study, “Progress against Covid”, industrialists expect a mixed impact of the Covid-19 outbreak on packaging companies.
Industries including groceries, consumer goods, pharmaceuticals and other e-commerce healthcare and transportation products will experience a surge. On the other side, packaging request luxury and industrial may show a downward trend.
In addition, with the impact on crude oil prices, the cost of crude oil-based raw materials, such as plastic resins for the packaging industry, is likely to decrease.
Cost pressures are also expected to increase packaging industrywith their customers under great pressure, consumers becoming very price sensitive, and packaging processors needing to get enough order volume to keep their plants at optimal capacity.
According to the Report, some of the action plans for cpackaging companies to consider after the Covid-19 crisis include:
- Leading teams in packaging companies They must build a recovery strategy that includes a combination of financial resilience, operational plans to restart packaging facilities that may be temporarily closed, and an assessment of the potential for future market demand, as well as customer-focused strategic moves. , as CUnderstand the impact of Covid-19 in the choice of consumer packaging.
- Review the carbon footprint of production and assess business continuity measures by creating country-specific plans and clear plant checklists.
- Analyze areas of packaging where demand will temporarily be high and assess the ability to shift production appropriately to meet new demand patterns.
- Reconsider business portfolios to ensure stable cash flow and healthy balance sheets.
*FoodPack-Food Emphasis content editor.
Source: Infiniti Research.