COVID-19 Impact on Dissolving Pulp and Paper in the Chemicals and Materials Industry
COVID-19 (Coronavirus) has affected the day-to-day life of people and has slowed down the economies worldwide. The pandemic has affected millions of people who either got sick or died due to the spread of this disease. Within a few months, coronavirus disease (COVID-19), which originated from China, became a pandemic, with more than 30 million people being infected to date.
IMPACT ON PRICE
The dissolving pulp and paper product is costly as the machines and technology used to manufacture high-quality products are on the higher side, which makes the end product more expensive. Also, the research for the raw material used is tedious and time-consuming. Furthermore, the maintenance of machines, technology used to make dissolving pulp and paper products add up to additional prices. The fluctuating prices of raw material for dissolving pulp and paper is the main factor restricting the growth of the market.
Moreover, after a pandemic, the demand for dissolving pulp and paper products has suddenly increased in various industries, and with rising demand, the prices for dissolving pulp and paper have increased.
IMPACT ON DEMAND AND SUPPLY CHAIN
· In April 2020, Sappi launched Ultracast Viva, a textured release paper line made for high-fidelity PVC, PU, semi-PU, and solvent-free casting systems. This new product launch helps in maintaining sustainable practices and environmental-friendly manufacturing and helped the company in enhancing its product portfolio
· In April 2020, Gulf Paper Manufacturing Company expanded its business by boosting the manufacturing capacity of packaging grades and manufactures tissue in Kuwait. This expansion helped the company in offering more products to their customers to achieve a leading position in the Kuwait market
· In October 2020, UPM launched UPM SolideTM in the specialty papers category. It's food-safe kraft papers that are recyclable in regular paper recycling streams and used for packaging. This new product launch aimed to produce recyclable products to enhance their product portfolio and to contribute to the sustainable environment
The increasing number of launches by the manufacturers to fulfil the demand of end-user industries even during the time of pandemic would boost the market growth even after COVID-19. However, the high prices of the product are one of the major restraining factors for the global dissolving pulp & paper market.
AFTERMATH OF COVID-19
After the outbreak of COVID-19 ends, the demand for dissolving pulp and paper would be increasing as there won't be any more restrictions on movement, and the procurement of raw material would be easy, and the manufacturers could easily provide dissolving pulp and paper to the end-users. The presence of a relatively young population all around the world is increasing the demand for dissolving pulp and paper as with growing urbanization, the consumption pattern has changed, and they are more attracted towards packaged and processed food products or ready-to-go meals, which has directly increased the demand for tissue papers or paper packaging products. Additionally, growing concern related to the environment is another factor that would propel the market in the future. Dissolving pulp and paper are sustainable renewable products that help in contributing towards sustainability. Also, to promote sustainability, young consumers are opting for clothes that are made from dissolving pulp and paper to save the environment. Thus, the growing concern related to the environment and the growing need for dissolving pulp in different industries such as textile, food, and others would propel the growth of the market.
COVID-19 pandemic has affected almost all industries, including the dissolving pulp and paper market globally. Also, the COVID-19 outbreak has affected the economy on a global level. The COVID-19 pandemic has led to the lockdown all around the world, which has impacted the demand as well as supply of dissolving pulp and paper products across countries. After the lift of the lockdown, the demand will suddenly increase owing to increase demand for pulp and paper products in different industries such as food, cosmetics, personal care, pharmaceuticals, textile, and others. Moreover, with the growing urbanization, the young population is also opting for on-the-go food, which has suddenly increased the demand for tissue papers which will boost the growth for dissolving pulp and paper in the market. Moreover, the rising concern related to the environment is another factor boosting the growth of the global dissolving pulp and paper market. However, with rising demand, the prices of dissolving pulp and paper products are increasing, which may hamper the growth of the market as it makes it hard to afford high-priced products in developing countries or by middle-class consumers. Therefore, with the rising demand for dissolving pulp and paper in various industries, the market would grow after COVID-19 pandemic is over.