During the current Global Recycling Awareness Week, celebrated on March 18th, it is worth noting that five fmcg industries contributed to four trillion retail packaging units in 2023, a figure expected to rise by 2% by 2026, according to Euromonitor’s packaging data. In this week that aims to generate awareness around the environmental significance of recycling, it is also important to understand that addressing sustainability is not only a moral requirement but also a business opportunity.
This year’s commodity market outlook remains highly uncertain. As consumers and businesses continue to grapple with lingering cost pressures and high interest rates, subdued global economic activity is set to translate into softer commodity demand.
A backdrop of sustained inflationary pressures and consumers cutting back on pricy groceries does not seem to bode well for health and wellness foods. Yet, post-COVID-19 consumer mindsets are also geared towards getting healthier with the right foods.
Global supply chains continue to face additional pressures in 2024 due to security crisis in the Red Sea. Global shipping companies and their clients avoid trade route via Suez Canal and instead are rerouting vessels round the Cape of Good Hope. This impacts around 11% of the global trade and poses the largest threat for the Asia-Europe shipping routes.
In 2024, economies and cities across many parts of the world will see a subdued growth environment, with higher-for-longer interest rates and geopolitical uncertainties weighing on consumption, investment, manufacturing and trade.
Amid the global economic slowdown, weaker private consumption, business spending and capital investment are expected to weigh on commodity demand and curb price growth. However, the outlook remains highly uncertain due to elevated geopolitical risks, which could lead to supply disruptions and intensify price volatility, especially in energy markets.