Impact of COVID-19 on the Global Metal Packaging Market
The COVID-19 outbreak has had a negative impact on the metal packaging market segment as the demand for metal packaging is linked to the GDP trend and the level of manufacturing activity. Thus, the steep decline related to COVID-19 lockdowns is resulting in a decrease in the demand for packaging. However, some of this is being balanced by industrial customers stockpiling drums and intermediate bulk containers, which is causing a provisional need. During the same period, some segments, such as packaging for the pharmaceutical and food industries, continue to witness strong demand. An increase in demand for corrugated packaging for grocery and e-commerce deliveries is also counterbalancing the demand lost in other segments. However, the demand for non-metal and premium-good packaging is being hit as buyers have started cutting back on spending during this pandemic. Most of the metal companies have shown a sturdy resolve and continue to keep up production during the outbreak, which has caused the shutdown of several businesses worldwide. On the other side, there has been a rebound in demand for metal packaging in as the global market is expected to witness packaging demand to return to normal steadily. Several industries, such as food & beverages, healthcare, personal care, and chemical, are expected to witness a quick rebound in demand. For luxury segments of packaging, the rebound is expected to be slower as customers are expected to be more uncertain to return to travel, purchase luxury products, and patronize the hospitality sector. The consumer purchasing power is expected to stay low as businesses emerge only weakly from the pandemic crisis, and the level of employment many suffer significantly. The rapidity in the recovery of packaging companies will be separated primarily by segment, depending on the level of disruption in the consumer segments and different company supply chains.
GDP Growth rate in Top Countries, 2010–2020 (%)