COVID-19 Impact on Pharmaceutical Packaging in Chemicals and Materials Industry

COVID-19 Impact on Global Molded Fiber Packaging Market in Chemical and Materials Industry

  • Chemical and Materials
  • Jun 04, 2021

COVID-19 Impact on Global Molded Fiber Packaging Market in Chemical and Materials Industry

ANALYSIS ON IMPACT OF COVID-19 ON GLOBAL MOLDED FIBER PACKAGING MARKET

COVID-19 has adversely affected the demand of molded fiber packaging market in cosmetics and food and beverage sector. On evaluating and analyzing the prevailing molded fiber packaging demand across the globe, it has been witnessed that the production of electronics and cosmetics have declined during the pandemic situation, which in turn has impacted the global market. Several companies which are engaged in manufacturing of molded fiber packaging products are facing several challenges related to the sale of packaging products. With the shutdown in the manufacturing process of several industries such as food and beverage and cosmetics has further led to a lower demand of molded fiber packaging in the global market.

COVID-19 has reduced the demand in the electronic manufacturing sector which has led to a lower demand of trays and boxes in the industry, resulting in low manufacturing of molded fiber packaging products. The impact of COVID-19 was first seen in January when several manufacturers in the U.S. faced problems due to shortage of raw material. As during the COVID-19, the demand of the high end electronics goods and import and export of electronics goods have declined due to which the production of the molded fiber packaging products have decreased in all regions. Molded fiber packaging products are used in the packaging of electronic, foods and beverage and cosmetics products but the pandemic situation which is created globally, shows the decline in the production of finished goods in electronics, cosmetics industry, due to which the manufactures of the molded fiber packaging products are unable to clear up the stock which resulted in the financial instability in coming years. The demand of the egg trays have fallen down in the pandemic as in the developing nations people have shifted to vegetarian food which decreased the demand of eggs tray packaging products.

AFTERMATH OF COVID-19 AND GOVERNMENT INITIATIVE TO BOOST THE  MOLDED FIBER PACKAGING MARKET 

COVID-19 has impacted the growth of molded fiber packaging market as most of the beverage and cosmetics goods manufactures have gone for more than six month lock down. The pandemic has affected the demand from domestic sector in developing nation which resulted in lower demand of molded fiber packaging products in manufacturing sector. Government of the U.S. has also taken initiatives for manufacturing sectors in the country during the lockdown period.

The U.S. Government has enforced stringent procedures of biosecurity and directed all activities to be carried out by digital communication. The government has taken steps to sanitize all the places and also policies have been setup for the growth of businesses and manufacturing industries to cover the losses. Various developing countries have also taken steps to increase the demand of the consumer electronics and food and beverage sector which helps to increase the demand of the molded fiber packaging products or also help to boots the molded fiber packaging market. The demand of the health care and personal hygiene products demand have also increased in the pandemic which increased the demand of molded fiber packaging.

With the growing demand for food and beverage products through e-commerce platform in the developing countries will increase the demand for molded fiber packaging market.  With the increase in the demand of molded fiber packaging in food and beverage sectors for the transportation of goods from one place to another safely increases the demand of the molded fiber packaging products. Government and several big manufactures are making innovations to improve the design and manufacturing process which will also have positive impact on molded fiber packaging market.

STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE

Manufactures of biodegradable packaging have to face many difficulties due to halt in the production of the molded fiber packaging products which resulting into low availability of molded fiber packaging products in global market. Molded fiber packaging products are high in the demand for food and beverage products packaging which help the manufactures to earn profits from the stock. Manufactures have also taken strategic decision to cover the losses which occurred due to COVID-19. Several OEMs and manufacturers have collaborated to resume production, which had been put to halt due to fluctuations in raw material. This would not only fulfill the demand of molded fiber packaging products in the different counties but also helps in enhancing information transparency in the business. Manufactures have also formed an alliance with the food and beverage, electronics goods suppliers in long terms which will help the molded fiber packaging manufacturers to reduce their costs and increase their margins.

IMPACT ON PRICE

With increasing effect of COVID-19, the price of molded fiber packaging products have been adversely affected due to downfall in the demand from beverage, food and electronics industries in the market. Other nations are not entering into import and export of raw material of pulp due to which demand of molded fiber packaging market has fallen down. With the lowering of the demand in market the price of molded fiber packaging products have declined and manufactures have to face huge losses.

IMPACT ON DEMAND

COVID-19 has impacted the demand of molded fiber packaging as products are more used in packaging of high end electronic goods, cosmetics and several food items. Due to lockdown in several sectors, the demand of packaging products have declined due to which the production for molded fiber packaging products have result in decline in the pandemic situation.

In coming years, manufactures will not be able to invest more money in the business due to fluctuations in availability of raw materials and price which includes different type of pulp material. Molded fiber packaging demand is ascertained to have declined in key end-users such as electronics, cosmetics and food and beverage. Low demand packaging products in the industries will have negative effect on molded fiber packaging market and even manufactures are also facing difficulties in forecasting demand.

IMPACT ON SUPPLY CHAIN

Supply chain has been affected more due to COVID-19 lockdown. Manufactures are not able to clear old stock in the inventory and not able to manage the future demand of molded fiber packaging products, which is impacting the molded fiber packaging market. Manufactures are also not able to produce packaging products according to the demand in different countries. Several dealers are also likely to exit the market due to lack in demand of molded fiber packaging products in the electronics and food and beverage industry. Supply chain have also impact on raw material which are imported from other regions for manufacturing of molded fiber packaging products which have also effected molded fiber packaging market.

CONCLUSION

In 2020, COVID-19 has bad impact on the demand of beverage, electronics and cosmetics due to which demand of molded fiber packaging products have reduced. The demand of molded fiber packaging products in beverage and electronics industry have decreased and also halted the production of cosmetics products in several regions which resulted in low demand in molded fiber packaging market. With the growing demand of the high quality packaging products in food and beverage industry and also with the increase in the demand of the biodegradable packaging will increase the demand of the molded fiber packaging in the global market.  Import and export of pulp raw material with other regions and nations will help to boost the molded fiber packaging market in near future. The government and the higher authority are also taking the positive action towards the growth of the molded fiber packaging products will also boost the molded fiber packaging market.