Corrugated cardboard: Few sectors show winners & losers of the corona crisis as clearly
On the one hand, serious growth in consumer goods packaging, on the other hand a dramatic decline in industrial packaging. In no other industry are the winners and losers of the corona crisis as clear as in the corrugated cardboard sector.
For the first quarter of 2020, the companies of the German Corrugated Cardboard Industry Association (VDW) report a sales increase of 1.4 percent compared to the previous year. The decisive factor was March with a plus of 4.7 percent.
According to the VDW managing director, the corona-related special economic situation in food retailing is responsible for the growth. Since almost two thirds of all transported goods are packed in corrugated cardboard, the peaks in demand from consumer goods manufacturers are directly transferred to the packaging industry.
It is also true, however, that around 30 percent of all corrugated board packaging used is used in industry and its logistics. This important market is often forgotten when considering the corrugated board industry.
Accordingly, the demolition of industrial production since Corona has had a serious impact on the manufacturers concerned. Price-adjusted industrial production fell in March by a total of 9.2 percent compared to the previous month.
As many companies in the industry specialise in certain user sectors, the developments triggered by Covid-19 are transmitted in very different ways. Those who are active in the food sector benefit disproportionately. On the other hand, those who have concentrated purely on packaging for industry and logistics may find the situation dramatic.