How COVID-19 Impacted on Amaranth Oil Market in Food & Beverages Industry ?
Impact of COVID-19 on Amaranth Oil Market in Food and Beverages Industry The COVID-19 pandemic has influenced the whole planet with its major impacts on the economy and businesses across the globe. The COVID-19 spread worldwide in unprecedented ways due to its high infectious and contagious nature and lack of availability of its vaccine. As a result, the greatest medical challenge in the 21st century is yet to be faced by physicians worldwide. Though the emergence of the virus can be traced back to Asia, many European countries along with the U.S. have been struck massively by the pandemic. The virus has spread across all regions ranging from North America, Europe, Asia-Pacific, Middle East, and Africa up to South America. The COVID-19 has been declared as a pandemic by World Health Organization (WHO) due to its increased spread across the globe. After the declaration of the pandemic, various countries announced the complete lockdown such as India, China, and other Asian countries to decrease its spread. According to the latest situation report by World Health Organization (WHO) stated 175 million cases of Corona have been reported globally and 4 million patients are dead due to the coronavirus. On a slightly positive note, a total of 158 million people have recovered and a total of 2 million vaccine doses have been administered as well. Amaranth oil industry has been impacted due to the outbreak of the COVID-19 pandemic. As many production and manufacturing plants were closed due to lockdown, the shortage of raw material directly decreases the availability of oil products as per the preferences unlike before. The revenue generation by the company decreased due to lockdown as the demand for non-essential products decreases, therefore it leads to a decline in growth of the amaranth oil market. The COVID-19 pandemic has significantly hit the nutritional progress of consumers across the world. The persistence of the COVID-19 for a longer period has adversely affected the most vulnerable groups of the population. From a business perspective, COVID-19 is significantly decreasing commercial activity, particularly in the consumer sector. However, consumer demand for various oils has increased as interest in overall health and wellness has grown. Due to the implemented highly restrictive mass quarantines which have affected many markets and their economies, the first half of the pandemic phase shows a great decline in the sales and market of amaranth oils due to restrictions on going out and closing of retail stores as V-Mart, and Big Bazaar among more. The key reasons for the growth of the amaranth oil industry before the COVID-19 pandemic include an increase in demand for essential oil and rising demand for the medicinal oil market. The increase in concern of health disorders has promoted healthy lifestyles and food-specific diets which are expected to give a boost to the global amaranth oil market. The post-pandemic period will see a significant increase in amaranth oil consumption, which will ultimately fuel the demand growth during the forecast era. Owing to the latest guidelines by the government which looks to ease several services, retail availability of branded amaranth oil should improve. Restoring demand for food, biological products, and cosmetics suggests a lucrative growth for the amaranth oil market after the viral epidemic is over. In addition, global market players are focused on forming alliances and partnerships to offer superior quality goods in the marketplace. Despite the huge demand for food after a pandemic, however, shutdowns are anticipated to impede the amaranth oil market growth for a considerable period. IMPACT ON PRICE Due to COVID–19, the price of amaranth oil has been widely affected. The shortage of raw material supply has increased the overall prices of amaranth oil due to the high demand and low supply. Limited availability of amaranth oil and increasing demand have further augmented the prices, which has also affected the prices of amaranth oil-based products such as cosmetics, aroma products, food supplements, and others. IMPACT ON DEMAND COVID-19 has highly affected the demand of the amaranth oil market as amaranth oil has high concentrations of omega-3 fatty acids. The ingredients which help fight aging, protect against the sun, are anti-inflammatory and help hydrate the skin. Squalene is an important moisturizing agent for the skin. There is an increase in demand for plant-based products during the ongoing pandemic of COVID-19. New consumers are emerging and adopting amaranth oil for boosting their immunity and also food supplements made from amaranth oil are widely adopted to improve overall immunity. Amaranth oil has a high concentration of antioxidants and phytosterols, so, it has been associated with several health benefits, including reducing inflammation, lowering cholesterol levels, and increasing weight loss. The leaves are low in saturated fats and have micronutrients such as vitamin A, vitamin B6, folate, niacin, riboflavin, vitamin C, calcium, iron, magnesium, phosphorus, potassium, zinc, copper, and manganese. These substances provide many benefits health benefits to the body which are essential to improve immunity during the COVID-19 pandemic. For instance, The COVID-19 crisis caused a historic decline in global oil demand but not necessarily a lasting one. Achieving an orderly transition away from oil is essential to meet climate goals, but it will require major policy changes from governments as well as accelerated behavioral changes. Without that, global oil demand is set to increase every year between now and 2028. IMPACT ON SUPPLY The supply chain has been affected more due to the COVID-19 lockdown. Manufacturers are not being able to clear the old stock in the inventory and not able to manage the future demands of the amaranth oil in several industries which are impacting the demand of the global market. Due to the lockdown, there is a shortage of supply as most of the laborers are not working due to the pandemic situation and companies are not able to supply their products on time. The growing demand for amaranth oil due to healthier aspects has a positive impact on the global amaranth oil market. According to trade organizations in the nutritional products industry, there is a significant impact on many points in the global supply chain for natural oil and plant-based products including amaranth oil. COVID-19 has affected the centers of the global value chains, causing highly impactful disruptions that determined ripple effects throughout all phases of the supply chain, from production to processing and distribution. The triggering factor of all such consequences is the containment measures adopted by national governments to limit the spread of the coronavirus, which caused drastic paradigm shifts. Due to the lack of raw material and labor in the pandemic situation, the demand for amaranth oil could not be fulfilled. Such panic-buying is exacerbating supply chain bottlenecks and driving cultivators to order more cultivation supplies in anticipation of continued demand for amaranth oil. Plant-based products such as amaranth and olive oil are facing supply chain disruptions due to less availability of labor, improper and slow supply of ready products for export, etc. Thus, the effect of COVID-19 on the supply chain of amaranth oil is severe. AMARANTH OIL MANUFACTURERS AND INDUSTRY LEADERS: PERSPECTIVE & INITIATIVES COVID-19 outbreak has affected every sector in the market which also includes the amaranth oil market. The industry has been affected as the supply and demand are badly disrupted. Many companies are losing their key revenue sources as food services outlets are closed or decreased their sales. Some companies have closed their production facilities to mitigate potential risks from COVID-19 during the first and second quarters of 2020. Many amaranth oil companies are taking initiatives during COVID-19. Companies are adapting to the unprecedented challenges posed by the quickly evolving coronavirus (COVID-19) situation, and take steps to ensure we are operating safely. Companies continue to assess the situation daily and take actions in an abundance of caution to maintain business continuity while focusing on the safety and health of our customers and employees, including: · Maintaining the supply chain, this has had minimal impact on company’s ability to serve their customers with continued supply reliability · Implementing contingency plans at production locations and working with suppliers to ensure continued operation without disruption · Increasing our distribution capacity, adjusting hours of operations, and positioning our inventory to replenish products from alternative locations · Ensuring customer service and logistics organizations are fully operational as they work remotely Several manufacturers in the global amaranth oil market are also coming forward to help each other in terms of finance as well as other market parameters to not only save the market scenario but to save themselves from the brutal grasp of the pandemic. CONCLUSION Pandemic has taken a toll on every aspect of life, including the global economy. With the significant downfalls in many sectors, a collaborative effort of government, industry players, and consumers can win the fight against COVID-19. In 2020, COVID-19 caused the high demand for oils such as amaranth oil to enhance their immunity. People are taking precautions to fight the COVID-19 situation and continue to maintain their immunity levels at higher rates by the usage of plant-based products for health. Plant-based oils are helpful to the immune system from such infectious diseases. During the COVID-19 pandemic, there has been an increase in demand for amaranth oil to treat or prevent illness as well as usage in the cosmetic industry due to its vegan nature. Thus, there is an impact on COVID-19 on the global amaranth oil market up to some extent. It continues to inflict the world with appalling economic and social dilemmas, capable enough to leave severe backlash on the economy for the next several years. The first wave had already inflicted severe blows to the population as well as the economy. The currently experiencing the second wave is expected to be more disastrous not only to the masses but also to food and beverages markets. The lockdown in various countries affected the import and export of various products that create the shortage of supply and due to the increasing demands of amaranth oil; there can be a price hike in various amaranth oil products.