COVID-19 Impact on Bubble Wrap in the Chemical and Materials Industry
INTRODUCTION
In packaging market every manufacturer have expected the crises which will occur due to the pandemic situations which is created by the COVID-19 in all packaging market globally but COVID -19 have the mixed situation of patterns for the bubble wrap manufactures in developing countries. The jumbled situation can be analyses as we can see that demand for packaging for, healthcare products, groceries and e-commerce transportation will rise sharply along with this, the demand for industrial, luxury, and some B2B-transport packaging have declined due to the lock down in the several regions due to which manufacturing sector have been effected on the larger extend. The impact COVID-19 on the bubble wrap manufactures can be seen with the product portfolios which are offered by manufacturers in the global packaging market.
IMPACT OF COVID-19 ON PACKAGING
Bubble wrap is soft, tough, and flexible which is used for packaging of numerous consumer goods. The most used packaging type among all the types which is used in the pandemic situation of the COVID-19 are bubble wrap which helps to increase the life span of food and beverage product and is used on a large scale in the food and beverage industry, automotive industry, pharmaceutical and healthcare industry, electrical and electronics industry and others. Bubble wrap are used to produce carrier bags, pouches, and packaging materials and cover films for agriculture applications. As due to the COVID-19, the disruptions in the supply chain can be seen which increases the demand for the bubble wrap as bubble wrap provide the protection from the bacteria and increase the life span of product during the storage.
Due to the COVID-19 people are not buying the product which are unpacked or product which are in the unhygienic conditions due to which bubble wrap on the vegetable and fruits in the retail store have increase which help to lower the transmission of the dangerous virus from one person to another.
However, the price of plastic resin will fall due to the decrease in the price of crude-oil prices, which will impact the cost of oil-based raw material products.
IMPACT ON DIFFERENT END USER INDUSTRY
HEALTHCARE INDUSTRY
Pandemic will not hamper the growth of packaging products in healthcare industry. Bubble wrap is widely used in the health care industry for the packaging of the medical equipment. With the effect of the COVID-19 demand will rise across the different healthcare-packaging types and related substrates which including closures, pumps, flexible blister foils and rigid plastics. Similarly, demand will rise for packaging which is used in the dietary supplements products such as vitamins and for essential supplies of medicines and products which consumers will needed during the lockdown situation.
FOOD AND BEVERAGE INDUSTRY
Bubble wrap are used in the packaging of the food and beverage packaging which are more transported in the pandemic situation of COVID-19. Bubble wrap is more in demand in the food and beverage industry as these films provide protective layer over tray foods to improve shelf-life and protect the contents from exterior elements including moisture, oxygen and other contaminants. Due to the pandemic situation in the region demand for the packed food have increased from 35%-40% in the developed region due to which the demand for the bubble wrap have increases. By analyzing the situation several food stores have come up with the food delivery facility which also boosts the products which are manufactured from the bubble wrap. The increase in food delivery and takeaway services is expected to drive the demand for disposable and flexible packaging even further.
E-COMMERCE INDUSTRY
COVID-19 self-isolation and social distancing measures have been put in place which certainly made an impact on e-commerce over the past couple of weeks. Workers in many regions and countries have been asked to work from home due to which the demand of goods have increased online which have a positive impact on the bubble wrap as packaging products re more used in the packing of online orders in several countries. Several stores have taken the decision for the use of the home delivery of the essential goods. Due to increasing online ordering of essential good which needed the bubble wrap for the packaging of product had increased the demand in e-commerce industry.
COMPANIES STRATERGIC INITIATIVES DURING COVID-19
- In May 2020, Smurfit Kappa has launched safe shield desk protectors which are used in school, College and offices. This shield has helped to maintain the distance from person to second person and also protect the spread of novel corona virus.
- In April 2020, Smurfit Kappa has taken a step to help communities which is affected by COVID-19 situation. They introduce a product which helps to maintain the distance and to keep safe from corona virus. These steps are helpful to improve our good will in the market.
- International Paper has a manufacturer of recycled fibre-based packaging goods that contributed two million corrugated boxes and films to COVID-19 for help. The firm has raised the market for food help packaging items because of the COVID-19 pandemic
- Rapid Action Packaging (RAP) has launched a new Sustainable Face Masks which fully biodegradable or safely disposable. These mask are very cheap just start from 32P.
- Dean Packaging Company have received the £20k funding package from UK Government’s Coronavirus Business Interruption Loan Scheme which increases the production of the film packing production for the packing of the essential products in the situation.
CONCLUSION
On conclusion, packaging industry has grown as compare to the other manufacturing industries. Packaging is an essential component for the food and beverage product in the transmission from one to another. In the pandemic situation of the COVID-19 supply chain have exposed to the worst situation due to which manufactures have faced many losses as raw material for the did reach on time which leads to the cancellation of the various orders of export and imports. However, some manufacturers have to shut down the product or to shift to new products that are important to fight the pandemic and for this the forest, paper and packaging companies need to remain focused.
Today the spread of the novel coronavirus has triggered significant market damage across the globe. Most businesses have stopped immediately and the effect on e-commerce of the coronavirus pandemic is not yet clear. The towns are closed down, and social distancing has become a modern norm. Customer’s wants every product should be covered from wrap which are help full to protect from COVID-19.
The raw materials which are need for the manufacturing of the bubble wrap which are used in the packaging of the health care and the food and beverage products are extracted from the crude oil. Due to the less consumption of the crude oil in the various regions have lower the price due to which manufacturing cost of the raw material for manufacturing of films have lower down which leads to increase in the revenue for the various manufactures and also attracting other players to enter into the packaging market.
The pandemic has also show case the U.S. pharmaceutical Market players an opportunity to become an alternative hub for manufacturing of intermediates which will consequently raise the demand for domestic bubble wrap manufactures and suppliers. China and India have also increase the usage of the bubble wrap in the packing due to more demand of the essential products in the COVID-19 situations.
Several manufactures closed the factory due to heavy lose. Market players are making the strategic action to increase the demand of the bubble wrap in the market and to increase the price so to earn revenue and government also helping the manufactures by making policies which helps the manufacturers to maintain stability.
