Global Packaging Market to Grow 5.5% in 2021 despite COVID-19 Pandemic

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Global Packaging Market To Grow 5.5%

In printing and packaging news, a recent report suggests that there are expectations suggesting that the Global Packaging Market set to Grow 5.5% in 2021, despite the Covid-19 pandemic.

The global packaging market size during the COVID-19 pandemic is projected to grow from $909.2 billion lat year to $1.012 trillion by 2021, at a CAGR of 5.5% as the most likely outcome during the forecast period according to printing and packaging news.

With the best-case scenario reflecting 9.2% growth and the worst-case scenario at 2.2% growth, 5.5% is the more likely outcome according to a new report by Research & Markets.

Major drivers for the packaging industry include the increased demand for fast-moving consumer goods (FMCG) and pharmaceutical packaging, and rising e-commerce sales due to lockdowns.

Healthcare is one of the fastest-growing market segments amidst the COVID-19 pandemic

During the COVID-19 pandemic, national governments and local municipalities and town and city councils are in the midst of practicing extreme caution to avoid the spread of the coronavirus. In such environments, healthcare products, PPE (personal protective equipments) like face masks, medical gowns, gloves and other PPE ro medical delivery equipment such as syringes, vials, and cartridges, are required on a large scale amidst this pandemic to fulfill the increasing global demand.

The plastic packaging segment is projected to lead the market during the forecast period.

Based on material type, plastic is therefore projected to lead the packaging market during the forecast period.

Despite the global downturn and the demand for oil for use in fuel and non consumer or medical plastics, Plastic is still described in the report, to be very necessary.

So much so that several measures are being taken to either temporarily roll back single-use plastic bag bans and other limiting legislation or stop the implementation of country or state-wide bans and other restrictive laws. Since the demand from many end-use industries is growing, the use of plastic packaging will also see a significant rise during and after this crisis.

For example, whilst in Europe the single use plastic bags in supermarkets has had charges implemented, these were scaled back and bags were given out to consumers without charge, to speed up the grocery packaging times and reduce the spread of infection with customers persuaded to pack their own groceries.

The resulting slowdown in global growth will have ripple effects across a range of markets, hamper multinationals’ ability to hit targets for 2020 and upend corporate forecasts and business plans for the year. 

In addition to the demand, confidence, and supply chain disruptions caused by the spread of COVID-19, companies will now also have to address the currency depreciation caused by the combination of oil prices collapsing and global finical markets driving a flight to safety. As a result, pricing strategies and customer price sensitivity will be challenge firms need to address over the coming months, irrespective of the level of COVID-related problems in individual countries. 

Firms will need to revise targets and expectations for the year, address supply chain disruptions, re-prioritize markets that have resilient demand, and tackle credit and liquidity challenges of customers and distributors. Longer-term, companies will need to pressure test their investment strategies and investigate their supply chains to improve their resilience to shocks.

Yet despite a global recession, FMCG and in particular food and beverage, healthcare, sanitary, pharmaceutical and PPE (personal protection equipment) products will see a constant surge in demand as the Covid-19 pandemic is tackled which will fuel the Global Packaging Market that is set to Grow 5.5% throughout 2021.

Expected Rise in Printing Ink Costs

The Global Printing Ink Catalyst Market is segmented based on type, application, end-use, resin, region and company and due to the surge in demand for FMCG, food and beverage packaging, it is expected that this will put supply chain pressures on the global printing ink market, with costs expected to rise through 2020 to 2024.

Based on application, the market can be segmented into gravure, flexographic, digital and lithographic. The flexography, rotogravure, and lithography are majorly used process for manufacturing. Out of which, the lithographic segment dominated the market until 2019 by holding the major market share and is further anticipated to maintain its dominance during the forecast period as well. This growth can be accredited to its properties, as it produces high quality image for different surfaces at minimal price.

Also, the gravure segment is estimated to register high growth over the coming years on account of high-speed process and production of very fine details. In addition to this, the gravure ink is widely used in applications involving wrapping papers, magazines, food packaging, among others, which is further anticipated to propel the segment growth in the coming years.

Research and Markets was founded in 2002 with one simple aim; to connect businesses with the market insights and analysis they need to enable intelligent decision-making. Since then R&M have grown into the world’s largest market research store with clients all over the world, including 450+ of the Fortune 500 Clients, choosing to buy their research from them.

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