PACKAGING: LIFE OF THE INDUSTRY DURING THE COVID-19 PANDEMIC

How is the packaging market changing today?

What new challenges did the packaging market face? Can the COVID-19 pandemic stimulate the packaging industry and unlock the potential of manufacturers? Has customer behavior changed during the crisis? And what awaits the Russian packaging market in the near future? In our review, you will find opinions and forecasts of leading domestic experts, as well as the reaction of manufacturing companies - long-term exhibitors at upakovka.

Today, packaging is more than just packaging. The protective, sterile and barrier properties of the packaging have come to the fore and are likely to remain the main requirements for packaging for a long time. The production of any goods is inconceivable without quality packaging, and it is during the pandemic period that packaging carries a huge burden, adapting to the new needs of the population. At the same time, packaging materials must remain environmentally friendly and safe for the environment.

The unstable situation in the global economy and the pandemic are changing trade and production before our very eyes. Coronavirus shock has already caused shocks in many industry markets. One way or another, companies are forced to optimize their production processes and meet new consumer needs. But, despite the obvious complications, many manufacturers continue to work continuously and are implementing plans for new projects.

What is the situation on the packaging market?

Alexander Boyko, General Director of NKPak, Chairman of the RF CCI Subcommittee, moderator of the section “Circular Economy in the Sphere of Packaging” of the innovationparc business program:

“In the first weeks of the pandemic, the demand for packaging, especially for food and hygiene products, has grown significantly. The desire of the population to create stocks of essential goods gave a powerful impetus to increase the production and supply of all types of packaging. However, today we can already talk about the deep structural changes in the packaging market caused by the epidemic and its consequences. Consumer behavior is changing. Logistic chains are broken. The protective functions of packaging come first, while marketing and others fade into the background. Reusable packaging becomes not relevant. One of the important problems that packaging manufacturers will face in the near future is the decline in the solvency of the population. Under these conditions, a constant analysis of the situation and a flexible response to its changes are necessary. NKPak is looking for ways to support the domestic packaging industry, the importance of which in extreme conditions is growing both for the economy and everyday life. The packaging industry must be recognized as systemically important. ”

Pyotr Bobrovsky, chairman of the subcommittee "Functional requirements and test methods for packaging, packaging elements and single loads" of the technical standardization committee ISO / TC 122 "Packaging", moderator of the "Packaging and labeling" section of the innovationparc business program:

“There is a lot of uncertainty in all sectors of the economy. Obviously, the packaging market, like other markets, will be in a very difficult situation this year. But there is one positive effect: the realization that packaging is not a threat to nature, but rather an important element in ensuring the safety of goods, hygiene and preventing the spread of viruses. Understanding that there is a one-time package, which, according to its functional purpose, should be used only once - and this application is necessary and justified. Moreover, there are prerequisites for a change and even partial lifting of the restrictions on the use of polymer packaging that have been adopted in Europe and some other countries. ”

Maxim Novikov, President of the Union of Soft Drinks and Mineral Water Producers, moderator of the section “Beverage Industry and Filling Technologies” of the innovationparc business program:

“The safety and quality of products is a top priority for manufacturers of juices, water and soft drinks. At all enterprises of SPBN participants, strict food safety requirements are observed, therefore, under special measures, all enterprises that are part of the Union provide citizens with quality and safe products. All enterprises operate regularly in accordance with business processes, are fully provided with raw materials and supply retail with the necessary volume of products on time. There are no problems with the presence of juices, water and soft drinks on the shelves, you can see for yourself.

In case of emergency measures and changes in the scheme of supplies of raw materials from other countries, manufacturers think in advance of alternative sources of supply. The Russian beverage industry is closely monitoring the situation, will act in a timely and effective manner, giving priority to the health and safety of consumers, customers and production workers. According to the latest research, coronavirus is not transmitted through food, so customers can, without fear, as before, buy juices, water and soft drinks, regardless of where they are produced. ”

Vera Bokareva, business trainer, consultant, dsn, independent expert reviewer of the packaging market, speaker of the innovationparc business program:

“I am glad that large companies, which are quite cautious about changing the assortment, were very quickly reorganized and gave the market what it needs first of all. These are protective equipment and supplies for them. Here are two inspiring examples.

Packaging solutions provider Novolex has decided to temporarily use its capabilities to produce protective equipment for healthcare professionals struggling with the spread of coronavirus. The company plans to produce up to 25,000 face shields and 100,000 medical gowns and sets up its infrastructure in factories that produce transparent PET sheets and special molded plastic fittings for the production of shielding components. Novolex uses for the manufacture of their equipment, originally intended for the production of food packaging: containers, disposable tableware.

Mondi has refitted the production line at its Gronau plant in Germany to produce soft elastic belts for face masks. Gronau factory specializes in the production of materials used for the manufacture of hygiene products for children and adults. The plant was able to quickly adapt one of its production lines to produce a three-layer laminated tape that ties a stretch plastic film between layers of soft non-woven material. The straps that Mondi supplies to its reel mask customers are cut and attached to each side of the mask, which helps to keep the mask in place. ”

How do manufacturers adapt to a new reality in a pandemic?

Maria Strelina, Executive Assistant, ECI Branch Manager:

“ECI continues to operate normally. We care about our employees, therefore, in connection with the measures taken to prevent the coronavirus pandemic, some of the employees were transferred to a remote mode of operation. Despite this, we are constantly in touch with our customers to promptly provide technical support, supply of equipment and spare parts.

Since ECI is a distributor of the world's leading manufacturers of packaging and technological equipment, we felt the seriousness of the situation from the beginning of the year, so we were able to prepare for it in advance and build a work process. Uninterrupted production and supply of equipment continues. Our technical experts conduct remote equipment acceptance and coordination with our customers. Experienced managers are always ready to provide complete information about the capabilities of the equipment and help find the optimal solution to technical problems.

At the moment, there is no outflow of customers; we work both with regular customers and with new ones. Our customers are manufacturers of essential goods and medicines. Interesting new packaging projects appeared for special means of protecting the population. ”

* ECI has been participating in upakovka for over 10 years, demonstrating its equipment from year to year. ECI Packaging Limited (USA) is one of the largest suppliers of packaging and processing equipment for the food, cosmetic, pharmaceutical and chemical industries in Russia and the CIS countries.

Alexander Filippov, Head of Service, LLC ROVEMA:

“The nature of our company’s activities has allowed us to temporarily switch to remote work. At the same time, we, as before, provide all our customers with all the necessary spare parts for packaging machines and services (the production process did not stop at Rovema GmbH in Germany). Deliveries from Germany and shipments to customers occur regularly. We are negotiating the supply of new equipment.

Most of our customers are companies belonging to the food industry that do not stop during a pandemic, and some increase production. Therefore, the nature of our interactions with customers during the pandemic has not changed much. ”

* ROVEMA LLC is an annual exhibitor at upakovka. The company ROVEMA GmbH (Germany) is one of the leaders in the global market for the production of packaging machines and lines for various types of products and applications.

Andrey Leonidovich Chursin, General Director of Pakkermash LLC:

“Pakkermash carries out many repairs of a variety of imported packaging equipment, including overhaul of machines for packing doypack and sachets. Kovid at Pakkermash did not affect. We did everything to reduce the risks of infection and continued to work, the regional administration supported us. Our office colleagues, who wanted to, began to work remotely, the conditions for this were created long ago. There was no drop in demand for services and supplies of Pakkermash, on the contrary, we are seeing an increase in orders. When European suppliers temporarily stopped working, we had a well-thought-out alternative. However, European deliveries resumed very quickly, today everything works as before. But there are also difficulties. For example, our service engineers cannot get to other areas, regional barriers are placed to move people, and hotels do not work. Unpleasantly weakening of the ruble, now you have to pay more for imports. But judging by the prices in the stores, the operators of the packaging equipment have already compensated for everything. The demand for good packaging equipment and its repair will continue to grow, competition in the market of producers, for example, food and other packaged goods, will remain at the same level. ”

* Pakkermash company - exhibitor at upakovka. The company supplies, sets up and maintains packaging equipment, as well as equipment for the production of the packaged product (technological equipment).

From the organizers of the upakovka 2021 exhibition

We really hope that our participants will be able to get out of the current crisis as soon as possible with minimal losses or even with profit and new projects. Perhaps new technological solutions and company developments will even be presented at the upcoming exhibition, because upakovka is an ideal platform for implementing the most daring marketing solutions and a growth point for businesses in the packaging market.

We remind you that the upakovka exhibition is an international platform for demonstrating packaging equipment, various technical solutions, finished packaging and packaging materials.

EXHIBITION STATISTICS PACKING 2020

Already on the site of the exhibition upakovka-tradefair.ru, you can send a request for pre-booking a booth so that you are among the first to receive the most advantageous offer. ⠀

The next exhibition will be held from January 26 to 29, 2021, Moscow, Expocentre Fairgrounds.