As the packaging industry prepares for Black Friday, DS Smith expects more growth

2021-11-24 05:33:29 By : Mr. Sam Lee

DS Smith said that with the preparation of the Black Friday paper market this weekend, the corrugated paper industry has responded to the surge in online retail.

Niels Flierman, DS Smith's head of papermaking, said that the packaging giant's paper division has performed strongly this year, with peaks and troughs-summer demand growth, and 2021 looks "very strong".

"The challenge for the industry is to respond to the demand for packaging supplies during the pandemic. We must assess how many days of inventory we keep to ensure that we can meet the demand.

“Due to the pandemic, some industries have not grown, such as industry and automobiles, so packaging has been shifted to key industries. Physical and mortar have rebounded again, as have industries and automobiles.” Fast moving consumer goods have driven the online retail market, which Flierman said is in the entire market. Europe has matured, but the UK is still Europe's largest e-commerce market.

"In the pandemic, the UK has the highest growth rate."

Flierman said that because sustainability is still an important part of consumer concerns, plastic tape on cardboard is a problem: "Recycling with tape is very difficult-we see a shift in paper-based tape. We also see a shift in paper-based tape. The shift in strapless solutions-this is a trend, designing packaging to fold/click in place."

He added that the research and development center of the corrugated paper giant-which has invested 100 million euros over the years-is looking for alternative materials, such as seaweed.

Flierman stated that DS Smith continues to acquire and is fully aware of the "extremely high demand" for lightweight paper: "We assessed where we need to use our assets to support the packaging world. E-commerce also needs to be lightweight. We have always In evaluation. We have achieved growth through acquisitions in the past, and we will continue to ensure that we have the right footprint to provide our customers with the best service."

As expected, Black Friday and Christmas Eve will be extremely busy periods for the packaging industry. "Even after Christmas, we will see good growth-there is no reason to believe that demand will slow down."

Flierman warned of expected cost pressures-inflation and transportation issues in Europe and the United States and the United Kingdom, as well as a combination of Covid restrictions and supply.

"From the pandemic, its clear e-commerce will continue to exist. I expect 2022 to be a very busy year with high demand — I don’t think it will slow down. Inflationary cost pressures may still exist. , But I expect them to be resolved because I think it’s artificially high costs."

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