The war between Russia and Ukraine is now a global concern. With the sanctions imposed on Russia, due to the military attacks on the neighboring country, the economy of the nation presided over by Putin suffers from restrictions from around the world. In a globalized world, the consequences of the strangulation of the Russian economy affect several markets.
And this also applies to the pulp and paper market. After all, petroleum derivatives (whose prices have soared) generate chemical products and some of these are used in this industrial process. We also have the fuel used to transport wood, raw material and final product. And there is the use of fuel in the burning of the industrial process. So we can say that, yes, conflicts also affect the paper industry.
Another factor that impacts this scenario are the Ukrainian and Russian companies themselves, which have been facing problems to maintain their operation. Since the end of February, paper manufacturers in both countries have had their production interrupted. In addition, sales and deliveries of chemical products used in this industry were suspended. As Russia’s biggest export partner in this segment is China, it is very likely that they will need to import from other countries to be able to maintain consumption figures.
Will the Packaging Market Continue to Grow?
According to an estimate prepared and released by Adobe Projects, 2022 should be the first year in which online commerce will move US$ 1 trillion. And most of these purchases must be made through a smartphone. That is, even with an uncertain global scenario both because of the pandemic and because of the conflicts between Russia and Ukraine, consumers will continue to buy online.
And the pulp and paper industry, which has faced high prices recently due to the scarcity of raw materials, will continue to grow. In the first two months of this year alone, consumers spent around US$ 121 billion, 34% more than in the same period last year.
Is it Possible to Dodge Higher Cardboard Prices?
If you have a business that relies on cardboard boxes to function – like an online store, for example – you’re probably wondering if you’ll have to pay more for packaging. As we have seen, in a globalized world it seems almost impossible to go through situations like these unscathed. After all, price hikes work as a kind of domino effect and impact the entire production chain. But it is possible to try to minimize these effects. Some tips on how to do this:
- Prioritize a long-term relationship with your packaging supplier. After all, with longer contracts, you can negotiate better and often get better prices than if you were jumping from supplier to supplier in search of the best prices at that moment.
- Buy from local suppliers! After all, if you buy from outside suppliers, they will spend more fuel to deliver your order to you than a local company would. This price will be included in the final price.
- Use data to your advantage. By analyzing your company’s sales and seasonality, you probably already have a sales estimate for the next few months, right? So, if possible, advance your order of boxes and keep a good stock for the foreseeable future. Especially if you get a good price for the largest quantity from your supplier.
Cardboard Boxes in Vancouver
If you are in the Vancouver area and are looking for a cardboard box supplier, please contact us. As our suppliers are local, we were not as impacted by the global price hike on packaging. We work with all types of boxes, from customized boxes to produce markets, and we can help you with your demands in this regard. Please request a free quote by clicking here.