We will go straight to this issue without going around too much. 2020 was a huge year for everyone. Unprecedented events such as a global pandemic and devastating weather shook the economy to its core. As a leading voice of the industry, we need to discuss the past year and examine its effects. Let’s look at the state of the packaging industry in 2021 through the lens of commonly used materials such as plastic and paper bags.
What Can We Expect From Paper and Plastic Materials?
At first glance, it may seem that global news about paper and plastic will not affect you or your business. You will be really surprised when you consider how often we come into contact with these materials in our daily life, which sounds so simple – think of the amount of paper and plastic you often encounter in everyday life, such as a one-size cake cup made with a cardboard box. That’s why we chose to focus on paper and plastic to help shape our thinking for the next year. We tried to summarize what can happen in the paper bag and packaging sector in 2021 in two articles.
Observation: High Demand Brings Shortage
The COVID-19 pandemic has made e-commerce an indispensable part of our daily lives. With restrictions and security concerns imposed around the world, common needs such as food and household supplies are collected at their private locations and delivered or shipped to consumers. While this leads to a significant increase in demand for products made from paper and recycled packaging materials, it also means a shortage in paper production worldwide.
Observation: Prices May Fluctuate to Reflect Supply Environment
Plastics and resin have become particularly scarce recently due to high demand and low production. The devastating weather impacted us in unexpected ways, both last year and this year. Areas, where plastics and resins are typically produced, have experienced delays and shortages due to events such as freezing pipelines or shutting down electrical networks. Unfortunately, such delays and shortcomings affect the overall price area of resins and plastic materials.