Strong growth has been experienced by the packaging companies on grounds of the boom in the e-commerce industry following the outbreak of the pandemic. This is believed by the analysts that this industry will experience growth and innovation starting 2021 and after that. Long-term and robust growth potential are there for the packaging industry as the applications of the industry are evergreen and widespread. As per the consultancy company Smithers, this is expected that the demand for packaging products increased by 2.8% by 2024. Almost every non-essential and essential industry requires some form of packaging. The packaging product demand is increasing in some lucrative domains including personal care, beverages, healthcare, cosmetics, food, household products, and industrial items. This packaging industry is usually categorized by the kind of materials including metal, glass, plastic, and paper.
There are more opportunities for growth and innovation of the packaging industry amid the increase in demand for eco-friendly covering, sustainable boxes, protective and secure packaging for fragile items and electronics. Heavy investments have been made by companies in packaging technologies for offering huge adaption and flexibility for various materials, substrates, and surfaces. Consumer good companies are also in search of user-friendly, smart, and marketable material for packing. As an example, beverage companies are focusing more on their packing designs, image styling, selection of font, and quality of the material. Such trends would improve the growth and innovation in the industry.
Now, without any further delay, we are going to share the 5 best packaging stocks in 2021 as reviewed by Insider Monkey. Topping the list is Amcor PLC (AMCR) which is one of the best ever packaging stocks in 2021. The headquarter of AMCR is in Switzerland. The company is engaged in the production of rigid containers, cartons, flexible packaging, beverage and food packing items, closures, etc. The Q1 earnings of the company were reported in November 2020 which shows a growth of 20%. The quarterly dividend of the company is increased by 2.2%
The next company on this list is Reynolds. The stock was gradually upgraded on January 4th by RBC with $25 as the price target. Nik Modi of RBC stated that the growing demand in the eat-at-home industry would be like a tailwind for the shares, as a long-term food at home trend has been rising due to the COVID-19 pandemic. The biggest hedge fund of the stock of this company is Southpoint Capital Advisors of John SMith Clark. This hedge fund holds 3,800,000 shares with a total value of $116.36 millon. This is not the end of the list, you can learn more by reading 10 Best Packaging Stocks To Buy Now.