Just like every other industry across the world, the packaging industry has been facing challenges due to the Novel Coronavirus COVID-19 pandemic over the past few weeks. The lockdown has brought the entire industry to a halt and every effort is made to keep the supply of essentials to the population. However, the supply of essentials would demand adequate packaging materials to be supplied.
Along with following the guidelines, the packaging industry is working with the government to figure out an effective solution. Various packaging manufacturers in Mumbai are seeking extraordinary solutions to this unforeseen situation. Keeping calm and chalking out sensible measures is crucial in getting through this situation.
However, the industry is facing various challenges due to COVID-19 pandemic and the guidelines issued. According to one of the top packaging companies in India, supply chains have been severely affected; inadequate availability of raw materials is a concerning issue.
- Reduced Production Capacity
The rising concern owes to the self-isolation practices of the workers of the industry. Various packaging companies rely on manufacturing faculties which have been either halted or limited to essentials. It is becoming hard to obtain packaging supplies due to factory closures.
The scarcity of supply or labour and material has to lead to reduced production and manufacturing capacity of the packaging companies in Mumbai and across the world as well.
- Disrupted Supply Chain
Where the majority of the processes of various industries have been halted, it has directly affected the supply chain too. With a cluster of suppliers in one region, it is even more difficult to obtain adequate raw materials.
It is important to look beyond the lowest price available and consider the overall value and risks that come along in the supply chain.
- Sustainability and Health Concerns
As per a company providing pharma packaging solutions in Mumbai, the race for switching to eco-friendly and greener alternatives has become fiercer in the light of COVID-19. The pandemic has lead to the development of serious health and safety concerns.
The packaging industry has to look for ways to cope up with the changed shopping habits. The need for unnecessary packaging has been eradicated attributing to the virus transmission modes. Therefore, the packaging industry needs to figure out extraordinary ways to deal with this pandemic.
- Macro-economic Challenges
GDP growth of the country has slowed down to a seven-year low. The companies involved in printing and packaging in Mumbai and across the country have to face challenges pertaining to consumer habit changes. The affected employment rates would restrict spending habits hurting the economy alongside. A large population follows discretionary spending habit which has changed. This will affect the packaging industry and pose various challenges for growth.