The COVID-19 pandemic has forced many businesses to shut down or shift to teleworking arrangements. This is projected to last for some more months. What is the global coronavirus outbreak’s impact on the world’s office supplies market?
Reduced growth but still booming
Expectedly, analysts have adjusted their growth estimates for the global office supplies market because of the current pandemic. The numbers are not as impressive as they were before, but they are still relatively high. A survey conducted by HTF Market Intelligence, predicts massive growth for the market by 2026.
The COVID-19 outbreak will have most likely resolved half a decade later. By then, business operations would be back to normal, albeit a new normal that entails some form of social distancing and the continuation of remote work setups for many. However, the fact that businesses are returning to near-regular operations is set to revive the global office supplies industry big time.
In the second quarter of 2020, the office supplies market was dealt a heavy blow by the accelerated spread of the virus. A study conducted by ReportLinker highlighted the pandemic’s negative impact on the global office supplies industry. It projected a market decline of 2.8% for 2020.
Nevertheless, the same study projected a big market revival by 2027. It estimated that the market value would have expanded to nearly 200 billion after seven years from the time COVID-19 became a pandemic. The study already accounted for the impact of digitalization and the permanent adoption of telework or telecommuting. Still, the forecasts are optimistic.
Popular office supplies
It is expected that nothing much will change in the kind of office supplies businesses are set to use even with the rise of digitalization and remote work. Businesses will most likely continue to purchase paper for copiers and official offline business correspondence, office stationery, printer supplies, filing materials, pens, notepads, whiteboards, and markers.
After the pandemic, there is the possibility of internet or virtual interaction fatigue. Because of this, many are expected to be itching to return to regular physical interactions. As such, meetings that used to be conducted through teleconferencing will likely return to the in-person setup. Physical offices will start going back to how they were before. Market researchers do not see digitalization to have a significant negative impact on the demand for traditional office supplies.
Before the pandemic hit, the global office supplies market was growing at a compounded annual growth rate (CAGR) of 2.4% for the 2017 to 2020 period. Unfortunately, businesses had to shut down temporarily over long periods. The office supplies markets in different parts of the world fell, along with other industries. The good news, however, is that massive recovery is expected in the next few years. It will not happen too soon, but it is bound to come. Businesses that rely on the office supplies market can expect a good rebound.
Conclusion – CAGR