2. Plastic packaging is more secure.
Multiple reports note that plastic packaging manufacturing has been little impacted by COVID-19. Overall, it is expected to be a dominant area of growth for the packaging industry. This appears to be accurate, especially in Europe, the Middle East, and Africa (EMEA). The customer base of blue-chip consumer packaged goods (CPG) and beverage brands is a significant part of this protection.
Stockpiling is expected to provide long-term resiliency, and many companies were already focused on cost-savings in the early part of 2020, which likely prevented significant harm during the initial COVID-19 wave.
The ongoing increase in consumer spending for food and beverage products coupled with higher freight shipments for medical and healthcare-related products should yield significant protections. McKinsey says the 14% increase in consumer spending on groceries will be especially beneficial to flexible, rigid plastics, and corrugated grocery packaging. Some in the space have even been able to repurpose production lines to create medical personal protective equipment, generating further security.