4 Ways Covid-19 Impacted the Packaging Industry

Photo by Kelly Sikkema on Unsplash

As we all work through the continuing disruption and stresses of the COVID-19 pandemic, we realise that there are far more fundamental issues at play than the state of the digital printing industry. However, if the pandemic has taught us anything it’s to pay close attention to the actions we can actually take ourselves, and the changes we can make to serve our clients better, so that’s what we are doing.

Online packages drove demand

Across the packaging industry, despite challenges in raw material procurement, businesses have seen increased demand in the second half of 2020. This is driven by e-commerce, as many of us stayed home and ordered everything from light bulbs to Corn Flakes online. Corrugated packing companies like Smurfit Kappa and Packaging Corporation of America saw revenues increase significantly towards the end of 2020 and into 2021. 

Sustainability took a back seat

In the US, the CDC reported in early 2020 that the virus seemed to be able to survive on cardboard for about 24 hours, and on plastic for up to three days. However widespread the issue may or may not have been, it caused governments and other regulators to slow or even shut down their sustainability efforts. These institutions lifted bans that were in place on single-use plastics and even reusable bags. 

According to industry magazine Plug and Play: Packaging companies were coming up with innovative technologies that were friendly to the environment, reusable, and biodegradable. But concerns about the hygiene and safety of reusable packaging temporarily halted the packaging industry’s progress towards a sustainable and circular supply chain.

As the pandemic evolves and the virus becomes part of the daily palette of issues for the world to deal with, expect environmental issues to return to prominence. Governments have NetZero targets to reach, as do car, energy and transportation industries. 

We expect that in the digital printing and packaging industry the opportunity to create very high quality, relatively short run packaging will stay in high demand. Why? Short runs that don’t sacrifice quality allow companies to reduce waste in their marketing. Furthermore, as companies navigate through an uncertain economy, being able to test market new offerings becomes ever more important.

Rise in single use packaging

The concern with the strength of the COVID-19 virus on packaging greatly increased demand for single-use packaging. Even plastic drinking straws, plastic-stemmed cotton buds, and plastic stirrers, slated for outright banning in the UK, were spared - it was felt that discarding these potentially virus-carrying items would be safer. 

Some US states suspended their bans on plastics, figuring that recycled bags could just move the virus from place to place. This relaxation fueled a rise in bottled water and disposable sanitizers.

While it is undoubtedly true that producing in bulk and fulfilling in recycled cartons is more environmentally sound, for the time being, the perceived safety of single-use packaging will supersede that. Consumers, however, want it all, and expect the demand for visibly recycled packaging to return.

Pharma drives design changes

Nowhere is the strength of single-use packaging more prevalent than in the pharmaceutical sector with the popularity of aluminium pillboxes, rigid plastics and airtight seals to prevent contamination. We have several clients in that industry, printing high quality, trackable labels that comply with EU and other regulations.

COVID-19 has shown us all how interdependent we are, and how unexpected events like a cargo ship getting stuck in a faraway canal can bring world commerce to its knees. While supply chains have been - and continue to be - strained and shortages will continue, global cooperation has shown us how resilient we can be when put to the test. Companies that are nimble, agile and responsive will thrive: we like to think that is in our DNA, and we look forward to continuing our work with clients that have a similar outlook.