Covid-19 is changing the packaging industry, here are 7 points:

Packaging is essential, now more than ever. At a time of global economic and health uncertainty, packaged products are a necessity. Whether it's hand sanitizers, medicines, medical test kits or food, packaging is an essential part of keeping the world safe and healthy.

Our packaging experts recently chatted (with proper social distancing, of course) about the changes they're seeing in the industry due to Covid-19. Read their top 7:

1. Prefer prepackaged processed foods

At a time when consumers are encouraged (or ordered) to stay home once, food that is processed to be stable for longer is all exposed. Concerned about possible quarantines and orders to stay at home, consumers are ready to store prepackaged processed foods.

This is a dramatic change from previous long-term market trends that strongly favor fresh, unpreserved foods.

"Over the past few years, consumers who have eschewed canned and overly processed foods have become more comfortable buying these products because they are seen as 'safe to eat.' - Mintel

According to recent research by Mintel, "Over the past few years, consumers who have avoided canned and overly processed foods have been more willing to justify purchasing these products because they are considered 'safe to eat.'" Considered economical and safe, and considered a wise choice when faced with the idea of ​​staying at home for long periods of time.

2. The need for on-demand devices

During the health crisis, the demand for packaged products such as food, medicines and medical devices increases. Contract packers and manufacturers find they need to scale up production...and quickly.

solution? Suppliers pack equipment on demand to keep machinery in stock for quick delivery. We have seen unprecedented demand for stock packaging machines that are available to customers almost immediately.

3. Foodservice and retail packaging see huge changes

At first, restaurants in many locations either closed their doors or only offered takeout or delivery services. Even after restaurants reopened in some areas, patronage at restaurants continued to plummet as many consumers lost their jobs or feared future economic instability. Meanwhile, consumers hoarding groceries means grocery stores are still struggling to fill their shelves.

The need for this shift was summed up in a March 2020 survey by Packaging World: 21% of CPG respondents reported that their biggest challenge was maintaining demand. Nearly the same number - 19% - CPG respondents reported the opposite problem: their biggest challenge was plummeting demand.

"21% of CPG companies reported that their biggest challenge was maintaining demand. Nearly the same amount (19%) reported the opposite problem: warming up demand." - March 2020 Packaging World Survey

What's the difference between the two groups? Retail and foodservice. Companies that reported surging demand for packaged foods served mostly grocery stores, while cpgs that reported plunging demand for packaged foods mostly served restaurants.

CPG companies serving the retail and foodservice markets are still reporting struggles, primarily due to supply chain disruptions and suppliers' inability to keep up with changing demand. According to a recent PMMI survey, “39% of members consulted about at least some disruption in their purchasing process.” Products previously sold in bulk must now be redistributed to fit consumer retail sizes, leading to supply chain disaggregation.

4. A new appreciation for disposable packaging

The packaging industry has been pushing for sustainability and waste reduction for many years. While these concerns remain valid and important in the long term, the value of single-use packaging is clear as people become more hygienic.

During a health crisis like the COVID-19 outbreak, consumers want to know that their products and their packaging have been handled by as few people as possible.

Lisa McTigue Pierce of Packaging Digest explains that “…single-use packaging, which has suffered from huge criticism in recent years because of its supposed wastefulness, might have an edge right now from a 'sanitary' point of view because of limited handling/access of the inner products.”

5. Labor shortages increase interest in packaging automation

Even before the pandemic hit, manufacturers and contract packers were experiencing shortages of qualified workers. Since then, as the world is unsure of how to respond to the global health crisis, the shortage has become worse, even more complex and still running their businesses.

Some companies are having trouble getting employees to come to work. Other companies are finding it difficult to maintain social distancing on artisanal packaging lines. There are also companies with soaring demand but unable to fill the corresponding vacancies. Packaging automation reduces reliance on the uncertainty of human labor, becoming even more important during the global health crisis. Instead of multiple workers cramming into a small packing area, a single operator can run most packing machines efficiently. Additionally, automating the packaging process means less manual handling, resulting in increased efficiency, safety and accuracy.

6. Business slowdown creates opportunities for innovation

Companies that are taking a hit now are just trying to keep up. They don't have the time or resources right now for large R&D projects or innovation initiatives. But well-positioned companies that are experiencing the opposite -- a slowdown in business -- have a unique opportunity to use this time to maximize their efficiency, research innovative options, and become stronger than ever in the wake of this crisis stronger at all times. "Good companies that have experienced a business slowdown have a unique opportunity to use this time to maximize their efficiency, examine innovation options, and emerge stronger than ever after this crisis." Matt Reynolds of Packaging World explains: "Well-managed cpgs respond to their slow pace with equipment upgrades, new production lines, factory improvements and new innovations, when good times are inevitable. These will make them more efficient when they come back."

7. Huge increase in demand for e-commerce

    

As e-commerce has exploded, so has demand for one segment: coffee subscription services. According to CNN, legions of consumers have signed up for a service that delivers artisanal coffee to their doorsteps. Matthew Burke, owner of coffee subscription service Bean Box, told CNN that they have "goed from having hundreds of bags on hand to an inventory of thousands of bags that are turned around every few days." As e-commerce grows, so does the need for demand: Modified Atmopshere packaging (map). During the health crisis, with fewer shopping trips, consumers who travel further afield are ordering their products online for shipment to their homes or businesses. Therefore, products with longer shelves are in longer demand. How does a manufacturer achieve this from a packaging perspective? Map of course.

The improved atmosphere packaging technology is added to the packaging process, which reduces the amount of ambient oxygen in the packaging, thereby reducing the oxidation rate of the packaging contents and prolonging the shelf life. MAP can be active, such as injecting nitrogen into the package to replace oxygen before sealing, or MAP can be passive, such as using multiple layers of impermeable packaging films to ensure maximum protection of the package contents from oxygen. Usually the solution is a combination of the two. The effects of MAP are real: these technologies can extend the life of perishable products by weeks, sometimes months.

bottom line The COVID-19 pandemic is changing the world. Some changes may be temporary, but there will be far-reaching changes that will fundamentally change the way the packaging industry operates. The good news: the industry has demand, and it's resilient. Moody's reports that industries such as the packaging and food processing industries are at low risk from the economic impact of COVID-19. After weathering this together, we may never go back to things in the past. We have to get used to the "new normal". Rest assured, we are here to support your business every step of the way, with Rophone packaging, your packaging of choice.