Packaging Testing Services Market Update: Covid-19 Reaffirms Critical Need for Business Agility

Apr 03,2020

Amidst self-isolation rules, lockdown, and cancellations, the Covid-19 pandemic has been affecting the packaging industry in general and packaging testing services in particular, leaving businesses to make big decisions on how to progress. While supermarkets can’t keep their shelves stocked and various foodservice sectors are struggling with low foot traffic and closures, there are signs that consumers are rethinking their preference for ‘packaging-free’ consumption. The pandemic and subsequent rise in panic buying is likely to influence appreciation of the important roles packaging play in maintaining the safety and integrity of products. As a result, the long-term outlook of the packaging testing services appears promising, while it is expected to face slight decline in 2020.

Packaging testing equipment and services are vital for every supply chain to avoid product damage, legal situations, and poor user experiences. However, the recent coronavirus turmoil is taking its toll on every supply chain across major markets and subsequently on current growth prospects of the packaging testing services market. On the other hand, the outbreak is influencing consumers to look for ways to minimize social contact, which in turn, accelerates the growth of e-Commerce industry. The result is expected to potentially raise the demand for protective packaging and improve future prospects of the packaging testing services market. Additionally, as businesses struggle with labor shortages, an upsurge in investment in automation is expected.

High Demand for Pharmaceutical and Medical Device Packaging Promises Lucrative Opportunities

Global focus on accurate test kits and research efforts to find vaccines against Covid-19 has been growing strong. In addition, strategic partnerships have been set to tackle another big problem – getting drugs and test kits safely to those who need them. While stakeholders are focusing on creating high-volume surge in pharmaceutical packaging and medical device packaging, it is critical for manufacturers to verify their package design and ensure that the products will not experience any damage during shipping. This, in turn, is generating higher demand for packaging testing services.

With Covid-19 causing considerable disruptions for companies operating in various industries, many are seeking ways to relocate their supply chain away from China, the epicenter of the outbreak. Regional markets for packaging testing services, other than Asia Pacific, are thus likely to grow strong going forward. Furthermore, market players’ focus on expansion in China is expected to come to standstill in near term.

North America and Europe will continue to remain key markets for packaging testing services, in the view of significant presence of service providers and strict regulatory framework for packaging formats, especially pharmaceutical, medical device, and food & beverage packaging. Many market players are further coming forward to assist authorities and healthcare advocates in making sure the packaging materials and products are on the frontline to combat the spread of Covid-19.

Packaging Testing Services Market: Beyond Coronavirus

As the pandemic unfolds and becomes difficult to authoritatively predict the full impact, market stakeholders are braced for challenges in their supply chains. In the packaging, damaged products would further result in loss revenue, consumer confidence, and additional production to replace the damaged products. Thereby, packaging testing services and packaged goods value chain will play a major role in near term to maintain productivity and safety.

Mounting concerns over the ubiquity of plastics and enforcement of new environmental regulations are projected to lead to significant changes in packaging testing in the future. To capitalize on rapid expansion of online retail industry, it is critical manufacturers to design, test, and ensure their meets retailer requirements, which in turn will remain instrumental to the market growth.