The Ripple Effects of the Global Pandemic on the Food Industry

There is no argument to the fact that the global pandemic of 2019 has affected the global economy harshly. Unlike all industries, the coronavirus outbreak has had a significant impact on all stages of the supply chain and value chain of the food & beverage industry. The United Nations has warned that the world is facing the worst food crisis in 50 years due to the recession caused by the pandemic. The pandemic has wholly reshaped the food & beverage industry, which is a result of supply-demand shock, consumers’ fear of basic needs availability, and rise in demand for immunity-boosting food items, among others.

Logistics Challenges Impact Overall Supply Chain Activities

Due to the global recession, consumers are focusing on affordability when making purchase decisions. Niche product claims such as clean label, free-from, etc., are being overshadowed by the affordability factor, especially in the bakery industry. Manufacturers are also looking for cheaper clean-label alternative ingredients so that they can reach out to the customers with reasonably priced, clean-label products.

COVID-19 has also modified the definition of “clean” beyond the labels. Since the onslaught of the pandemic as the majority of the consumers are interested in at-home preparation and server hygiene of the
food products.

To read more about ChemBizR’s insights on the topic, click the link below:

Authors:
Abhilash Ravi, Consultant, Food & Nutrition
Sreedevi K, Consultant, Food & Nutrition

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