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What COVID-19 Impacted on the Commercial Jar Blenders Market in Food & Beverage Industry ?

The COVID-19 pandemic has affected the industrial and commercial progress of most of the countries across the region. COVID-19 has negatively impacted the manufacturers, distributors, and suppliers of commercial jar blenders. The declining export shipment and decreasing demand for commercial jar blenders are significantly reducing the market growth. The COVID-19 pandemic has affected the commercial jar blender market in three ways: a direct impact on production and demand, supply chain disruption, and financial impact on firms. Moreover, disruption in the supply chain directly affects the production of jar blenders, which further decreases the growth rate in the market.
The outbreak of COVID-19 has affected the production and supply chain of commercial jar blenders. So, the manufacturers are working on their business strategy to stabilize the demand. This is because several manufacturers are unable to stabilize the commercial jar blenders market during the second and third waves of COVID-19 that hit many countries. Thus, the manufacturers ensure safety in the manufacturing process by following the prevailing situations' norms.
STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE
In 2020, the market shares of commercial jar blenders are drastically affected during the COVID-19 pandemic. The manufacturers of the commercial jar blenders were facing a significant challenge during COVID-19 due to lack of transportation and disruption in the supply chain. Also, it increased the demand in the market. Owing to less production and sale during COVID-19, the net sale revenue decreased substantially. To gain a competitive market share after COVID-19, the manufacturers have taken certain strategic decisions.
•Production of Premium Quality Products:
Several manufacturers are focusing on producing high-quality products with innovative features to improve the demand among the customers. For instance, in recent years, customers have adopted smart technologies and automated machines. Hence, the introduction of automatic jar blenders in the market will raise the demand among the end-users. Furthermore, it impels market growth.
•Announcing Discounts and Other Offers:
The customers are more attracted to the discounts and other offers that are available for the products. The commercial jar blender manufacturers are selling their products at a discounted price to increase the market demand. As people are sensitive to money, the price of discounted products quickly reaches the customers and promotes market growth. Similarly, the offers include extended warranty, free services, and others that influence the people to buy the product. Thus, the discounts and offers of the products are expected to fuel the demand among the population.
•Use of Alternative Sourcing:
The manufacturers are exploring to increase the quantity of sourced materials. For instance, during the COVID-19 pandemic, the manufacturers stopped production due to a lack of raw material and disruption in the supply chain. Hence, the manufacturers are opting for backup or alternative raw material suppliers which will help to continue the production even during epidemic or pandemic conditions. Therefore, continuous production is expected to aid the manufacturer in increasing the market share.
AFTERMATH OF COVID-19 AND GOVERNMENT INITIATIVE TO BOOST THE MARKET
The taste of food items is majorly influenced by blending the right amount of ingredients. The use of a manual way of blending may result in a lack of consistency. This may cause a non-uniform taste in a food item and appear unattractive in terms of texture. Thus, the end-user increasingly adopts commercial blenders to ensure a proper blending of food ingredients to provide a better taste and texture. Hence, it raises the demand for commercial jar blenders in the market. On the other hand, the demand for commercial jar blenders has decreased during the COVID-19 pandemic situation.
The COVID-19 is an infectious disease which widely spread among the world population in 2020. Therefore, the government has implemented various restrictions and lockdowns in major countries to reduce the spread of the virus. During this period, the transportation of goods came to a halt. Furthermore, it disrupted the supply chain. As a result of the discontinuous supply chain, the commercial jar blender manufacturers had ceased the production process due to a lack of resources and raw materials. Meanwhile, the raw material price continuously fluctuated due to supply chain disruption. In addition, the establishment of lockdown reduced the movement of people from one place to another. Also, it reduced the consumption of food products from restaurants, bars, hotels, café, and other foodservice sectors. Hence, the usage of commercial jar blenders decreased in the foodservice sector. The decrease in the demand for commercial jar blenders in the foodservice sector declined the demand and growth rate in the commercial jar blenders market. In addition, the government has taken certain initiatives to boost up the growth of commercial jars in the market. For instance, the regulation and policies that impact transportation, energy, labor are supervised by different sections of the government. In various countries, the government has unleashed the transportation restriction to the supply of required raw materials to the manufacturers. Similarly, the government allowed the manufacturers to deliver their products to the end-user. Hence, it may aid the manufacturers to boost up their growth in the market.
IMPACT ON SUPPLY CHAIN
During the pandemic situation, the supply chain was majorly disrupted due to a lack of resources and transportation. Also, the government implemented various restrictions and lockdowns to prevent the spread of the disease. In the same vein, the government restricted the movement of goods across the countries and the entire supply chain was distorted. Owing to the disrupted supply chain, the transportation of raw materials such as blades, glass, steel, polycarbonate, motors, and other materials was interrupted, and the jar blenders' production was halted. Similarly, the manufacturers are unable to transport the final product to the dealers or end-user due to the implementation of lockdown. Thus, the demand for commercial jar blenders was on the decline drastically. As a result, the COVID-19 pandemic has negatively affected the growth of commercial jar blenders in the market.
As the regulation for good supply was changed, the transportation cost has been increased. Thus, the manufacturers face a raw material shortage, creating a gap in the amount of material demanded and supplied by the raw material manufacturers.
The change in regulations of the supply chain process has created more challenges for the manufacturers and the suppliers, for instance, a rise in inventory cost and hold up the cost of the finished goods, which are still to be delivered. This situation has created an economic loss for the manufacturers and suppliers and the worker who cannot generate their livelihood. Manufacturers must assess many regulations, such as operational risk, extensive inventory handling, and the search for alternative procurement strategies. Some of the critical areas are required to be looked upon by the manufacturers to reduce the gap between the demand and supply of products.
IMPACT ON DEMAND
The COVID-19 pandemic has affected the commercial progress of most cities across the region. The pandemic of COVID-19 has both short-term and long-term impacts on demand. Due to the lockdown implemented by the government, people are prohibited to consume food at restaurants, café, hotels, and canteen. Hence, the foodservice industry was completely turned off last quarter of 2020. As a result, it decreased the usage of commercial jar blenders. Therefore, the decrease in demand among the end-user diminished the growth of commercial jar blenders in the market in 2020.
PRICE IMPACT ON DEMAND OF COMMERCIAL JAR BLENDERS
Customers across the globe are significantly shifting their focus towards commercial jar blenders due to many factors such as high blending efficiency, multiple function, and others. The product price has remained the same during the pandemic situation. The price of commercial jar blenders vary depending on the brand and model of the products. Owing to the various restrictions in society, the demand for commercial jar blenders decreased during the pandemic situation. To increase the sale, the manufacturers are selling commercial jar blenders at a discounted price. Thus, decreasing the product's price may raise the net sale and hence improve the growth in the market.
CONCLUSION
COVID-19 pandemic has taken a toll on the population and economy. A collaborative effort on governments, public health departments, and hospital fraternity to fight the coronavirus has led to economic slowdowns, lockdowns, and extreme public safety measures. Due to the lack of transportation, the supply chain is disrupted, and the market demand is decreasing. Some of the manufacturers of commercial jar blenders are facing raw material shortages due to the current pandemic situation. With the rising count of the foodservice sector, the demand for commercial jar blenders is increasing in the market. However, the disruption in the supply chain reduces the availability of a product in the market. The increased usage of commercial jar blenders has raised the demand for raw materials by creating a competitive market among raw material suppliers. Thus, COVID-19 has impacted the market of commercial jar blenders in both positive and negative ways for the manufacturers and the suppliers.
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How COVID-19 Impacted on the Global Collagen Market in the Food & Beverage Industry ?
COVID-19 Impact on the Global Collagen Market in the Food and Beverage Industry ANALYSIS ON IMPACT OF COVID-19 ON THE GLOBAL COLLAGEN MARKET COVID-19 has positively impacted the global collagen market with increased sales of the supplements. According to the World Health Organization (WHO), maintaining a good and healthy immune system may help in early recovery from viruses such as coronavirus. For that, people are advised to preserve vitamins, proteins and micronutrients in their bodies. Collagen is one of those supplements that help in maintaining the protein level in the human body. Keeping the current lifecycle in consideration, the amount of collagen produced in the human body is relatively weak. Thus, people have started opting for collagen supplements, increasing the demand for collagen-based accessories globally. There is a growing demand for collagen in the sports nutrition industry. Collagen is added to the supplements to maximize performance and leads to bodybuilding, increasing the prevalence of food supplements in athletes. Food supplements help the body maintained shape with an attractive physique. Thus, the increasing use of collagen as an ingredient in supplements for sports athletes has maximized collagen usage, leading to the increase in the extraction of collagen in the market. As a result, the key market players started to introduce a variety of sports nutrition containing collagen protein due to growing demand and its health benefits. For instance, · In April 2021, Reneva collagen drink launched a new product formulation and found a green apple flavor. It is packed with 10 grams of collagen peptides that help to enhance lean muscle gain, muscle strength, boost metabolism, and increase fat loss in combination with moderate exercise. · In September 2019, Vital Proteins launched Vital Performance, a collagen-based sports nutrition product tailored to meet the functional needs of athletes. · In August 2018, Advanced Protein Technology introduced a new line of collagen-based products named Nutra Collagen. This is built on the advanced quality of purity, quality and functionality. Thus growing demand for sports supplements will further fuel the demand for collagen in the market in the coming years. As per IRI (Information Resources, Incorporated) data, the demand for various dietary supplements has increased in the U.S. market. Since March 2020, the sales of accessories rose by 6%. There has been a rise in the demand for vitamin-C supplements and protein supplements by more than 100%. The declaration of dietary supplements as "essential" business has maintained the supply of these nutrients. AFTERMATH OF COVID-19 AND GOVERNMENT INITIATIVE TO BOOST THE GLOBAL COLLAGEN MARKET As COVID-19 has increased the demand for collagen and collagen-based supplements, a gap has appeared between the supply and direction of the product. To maintain the balance of supply and demand, various countries' governments are taking multiple and essential steps towards it. Moreover, after the outbreak of COVID-19, the consumers have become more conscious about the intake of food sourced from an animal. The majority of the population globally is turning vegetarian or either vegan, especially after the COVID-19 outbreak. With the growing awareness regarding the health benefits of consuming plant-based products and also about supporting the environment and animals with the consumption of plant-based collagen substitute products, the demand for an animal-based collagen-based product might shrink in the coming years. After the COVID-19, consumers are opting for vegetarian food and plant-based products, even plant-based meat, as they got more inclined to lead a clean and healthy lifestyle, which may restrain the market in the coming years. During the worldwide pandemic, the demand for health and dietary supplements has peaked up sharply. But at the same time, supply has been impacted because of limited manufacturing. Compared to traditional food manufacturers, the dietary supplement companies face huge supply chain problems due to shipping and manufacturing problems compiled with the increase in demand. The government is making many changes to handle the impact. For instance, · The Chinese government has accelerated the e-commerce trade among cross- borders and has launched new models to increase FDI. For this, the government has implemented a policy for VAT exemption, consumption tax and levied corporate income tax for retail export goods in specified zones. The tax exemption and other subsidiaries will help increase the number of imported goods in the local market. Local retailers will be encouraged to open up businesses in those specified zones known as the CBEC zone. · The Brazilian government published a resolution eliminating import taxes on medical products based on collagen. STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE Due to higher demand, manufacturers have to make strategic decisions to maximize their profit and proper supply. Some of the strategic choices include acquiring with overseas manufacturers to regularize an appropriate collection of the products. For instance, · In June 2020, Nestlé Health Science (NHS), a global leader in nutritional science, decided to acquire a majority stake in Vital Proteins, America's leading collagen brand and a lifestyle and wellness platform offering supplements, beverages and food products. · In January 2020, Halma Plc acquired NovaBone Products, LLC ("NovaBone"), a designer and manufacturer of US FDA-approved synthetic bone graft products and collagen solutions. · In July 2020, Collagen Solutions Plc (AIM: COS) announced that it has entered into a new three-year agreement with NovaBone Products ("NovaBone"), a designer and manufacturer of the U.S. FDA-cleared synthetic bone grafts. This strategic decision among the critical player collagen market amid the pandemic will further escalate the growth of the collagen market in the coming years. Furthermore, various collaborations are expected in the coming years, further driving the market in the forecast year. PRICE IMPACT After the outbreak of COVID–19, it is most likely that prices for supplements such as vitamin C and protein-based supplements will rise. As per the experts, the increasing demand will lead to a rise in the prices for a shorter duration, but it will increase. The impact of price rise will affect the spot- buyers at the supply chain. Also, it is expected that companies that are 100% price-driven will face increased prices with a lack of goods. Compared to other commodities, collagen-based supplements are already sold at higher prices and by this pandemic, the prices have gone up. IMPACT ON DEMAND COVID-19 breakout has increased demand for various supplements such as protein supplements and vitamin C. Some of the accessories have even witnessed the increased demand by many folds due to the growing focus on healthy and robust immune systems. Collagen-based supplements are required for proper growth, especially in infants and kids. As during COVID-19, it is challenging to obtain the necessary amount of collagen from other sources. Thus, people prefer to overcome collagen deficiency with the help of collagen supplements such as pallets, tablets and capsules. IMPACT ON SUPPLY CHAIN Due to the pandemic condition worldwide, the manufacturers have done several changes in the supply chain of the product. In countries as India, the government has added the dietary supplement such as collagen-based supplements in the list of essential products. Thus, it is an on-selling product in the market during the COVID-19, but as the country is running under lockdown, the manufacturing has impacted the supply chain at almost every point. The product is already available in the market. Still, the consumers are not buying due to the fear of getting affected and on the other hand, some people are ordering the product, but due to the lack of delivery partners, the products are not reaching on time to the consumers. In many regions, overseas contract manufacturers are being contacted, but they ask for higher prices and air freight expenses. This has also impacted the overall supply chain of the product. However, e-commerce is playing an essential role in providing collagen-based sports nutrition. Despite the hurdles, e-commerce and private label saw a sharp rise as the industry braced itself for the second wave of the pandemic and beyond. For instance, · According to Nutrition Business Journal's "2020 Supplement Business Report," demand for the nutritional supplement has been grown is they are expected to grow at 61.4% in 2020. Further online sale is expected to reach USD 10 million in 2023 in which online sales of nutritional supplements will acquire 19.6% of sales by 2023." Thus pandemic has shifted the consumer shopping interest and forcibly satisfied with online shopping and thus resulting in a considerable share from e-commerce websites. The boom in online / e-commerce platforms has had an enormous effect on the market's supply chain as it provides greater flexibility, convenience to the consumer. This also helps maintain a better social distancing compared to traditional store-based retailers or supermarkets. Globally, after the lockdown, Google's search for food delivery services rose by 300 %. CONCLUSION As COVID-19 has affected most businesses around the globe, the market of collagen and collagen-based supplements has seen an unexpected rise in demand. With the growing concerns about the robust immune system to minimize the chances of coronavirus, the collagen-based supplements market has gone up. But at the same time, due to shut down in most countries, it has also adversely affected the supply of collagen. Along with this, the increased demand has also resulted in a hike in the price of collagen. The government and the manufacturers are taking various measures to maintain the supply-demand balance in the global collagen market.