The COVID-19 pandemic has significantly affected the food and beverages industries across the globe. The outbreak of the COVID-19 has highlighted the importance of the food industry for security of the global population and society. Worldwide, countries are expecting drastic decline in purchasing power of the consumers particularly in low- and middle-income countries due to of loss of income, shutdown of businesses, and thereby breakdown of food markets due to both demand shocks and supply constraints.
Major yeast companies are focusing on healthier product development to promote people’s health and wellbeing by reducing salt content, cutting saturated fats and reducing sugar. People suffering from lifestyle disorders such as diabetes and blood pressure are more likely to suffer from COVID-19. Thus people are becoming more health conscious and started adopting healthier lifestyle and nutrients in their daily meal.
With increased time at home and shutdown of the food outlets outside, a rediscovery of baking and making bread took off across the globe, which is driving increased demand for yeast as compared with pre-COVID-19 levels.
On the other hand due to outbreak of COVID-19, the yeast market has been facing some issues with streamlining all the of the supply chain work streams from production to the delivery of the yeast, which is expected to restrict the growth of the yeast market during this pandemic period. Additionally, consumers will be more focused on building higher immunity level during and post-crisis situation which will shape the market of ingredient producers.
COVID-19 MAY LEAD TO DRASTIC REDUCTION IN CONSUMPTION OF BAKERY PRODUCTS
The COVID-19 crisis has hugely affected on the demand of bakery products. The spike in the demand for yeast during early days of the pandemic has seen as due to lockdowns across the globe, people with more time at home.
Thus, consumers are baking it in home instead of buying bakery products from market. Manufacturers are started introducing healthier product portfolio in the market to overcome this challenges.
· Associated British Foods plc products under DON business continues to reduce the salt content of their products, and started adding a ‘smiley’ label on low-salt products that it will designed to appeal to children, while ABF Ingredients business Ohly has launched natural, yeast-based ingredients which enable consumers to reduce the content of salt in their recipes by up to 30%.
In New Zealand, Tip Top’s Fruit Bread reformulated product with no added sugar. Additionally, Speedibake, the U.K. Grocery businesses has reduced sugar across all its
· products since from 2015. By an average of 37% of the sugar get reduced which is equating to 1,700 tons per year.
Several manufactures are actively lowering the fats and making sure that they avoid additional increase in the fat content.
· Jordans Dorset Ryvita is reduced 60% of the saturate fat content by replacing palm oil with sunflower oil. All these factors are likely to provide healthier growth for bakery products during COVID-19 pandemic.
FLUCTUATION IN THE DEMAND OF WINE ACROSS THE GLOBE DURING COVID-19 PANDEMIC
Key players operating in the Wine industry has been facing major hit due to outbreak of COVID-19 across the globe. Market is majorly driven by closure of key sales channels outside retail and shutdown of all e-commerce services across the globe due to precautions measure taken by government to combat COVID-19 situation. WHO recommends physical distancing as a protective measure which resulted into shutdown of Bars, Casinos, night clubs, and restaurants that in turn hampered the growth of wine industry.
· Treasury Wine Estates reported 13.9% decline in EBITS in Asia, 15.6% decline in EBITS in Australia and New Zealand and major decline in America with 36.9% in EBITs.
On the other hand consumers were in hurry to having boxes of wine shipped to their homes when lockdowns were started across the globe due to outbreak of COVID-19 but now it seems consumers are using services such as Drizly (alcohol E-commerce platform) for ordering alcohol at the home.
Consumers are drinking more often at home as it provide platform for them to drink anytime. Additionally, various restaurants are nowadays following social distancing norms thus, for some period of the COVID-19; market shows positive impact on the wine industry.
DECREASE IN PRODUCTION OF BIOFUEL DUE TO COVID-19
Biofuel is made up of various types of feedstock including starch, sucrose, lignocellulosic and algal biomass by the process of fermentation via microorganism called yeast. Thus, growing demand of biofuels across the globe is boosting the growth of the yeast market. But as all aspects of the business have impacted biofuel market has also affected by outbreak of COVID-19.
COVID-19 pandemic has resulted into shutdown of all the outdoor activities for some period of time which has shown negative impact on the consumption of the biofuel among the consumers. As per International Energy Agency report Global transport biofuel production in 2020 is expected to be 144 billion liters (L), equivalent to 2 480 thousand barrels per day (kb/d) that is 11.6% drop from 2019’s record output.
When compared to others, diesel is less affected, as the transport of goods accounts for a substantial proportion of its diesel usage and the COVID-19 crisis has had a smaller effect than personal mobility. Drastic reduction in the export of the biofuels has seen after the restrictions have been imposed by the government on international trade.
FIGURE 1. EXPORT OF BIOFUELS ACROSS THE GLOBE
FIGURE 2. CONSUMPTION OF BIOFUEL ACROSS THE GLOBE
GLOBAL RESTRICTIONS ON MOVEMENT OF GOODS AND PEOPLE HAVE HAMPERED THE SUPPLY CHAIN OF YEAST
The COVID-19 economic crisis has also affected the supply chain of yeast industry. The government restrictions on movement of goods and people and breakdown in any part of the supply chain – from farmers to suppliers, processors, distributors, and retailers can break entire supply chain of yeast. Global lockdowns have resulted into labor shortages, restrictions on logistics, and food security issues.
Yeast industry has facing problems right from the collection of raw material that is molasses to the delivery of yeasts to the end consumers. Drastic decline has been seen in the production and export of molasses in 2019 and 2020 as compared to past years due to disruption of the supply chain.
FIGURE 3. EXPORT OF MOLASSES ACROSS THE GLOBE