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How Impacted COVID-19 on Balsamic Vinegar Market in Food and Beverages Industry ?


Impact of COVID-19 on Balsamic Vinegar Market in Food and Beverages Industry
COVID-19 pandemic has impacted the industrial and commercial progress of most of the countries across the region. It has negatively impacted the producers, distributors and suppliers of the balsamic vinegar as well. The decline in export shipment and decreasing demand for balsamic vinegar are significantly reducing the market growth. The COVID-19 pandemic has affected the balsamic vinegar market in mainly three ways, namely, direct impact on production and demand, supply chain disruption and financial impact on firms and the market. Moreover, disruption in the supply chain directly affects the production of the balsamic vinegar, further decreasing the growth rate.
Every sector in the food industry has been impacted either positively or negatively due to the COVID-19. The balsamic vinegar market has the positive impacts of it because high nutritional value of balsamic vinegar has gathered a greater demand among the consumers.

IMPACT ON DEMAND

The demand for balsamic vinegar is increasing drastically owing to its various applications in food industry and food service sector. During COVID-19 pandemic, the demand for balsamic vinegar was increased as it is rich in phytonutrients and other essential nutrients which help to fight against COVID-19. In addition, the consumer prefers smoked balsamic vinegar to improve the taste of the food to satisfy the consumer’s papillae. Hence, the demand is rising promptly and increases the growth of balsamic vinegar in the global market. Meanwhile, pandemic has increased the consumption of mineral rich products which is targeted to boost up the immune system of the body. Also, the availability of nutrition in balsamic vinegar helps to treat cardiovascular disease, chronic venous insufficiency and reduce inflammation. According to Centre for Disease Control and Prevention, hypertension is the major cause of death of around half million people in every year. Hence, the vinegar manufacturers are trying to increase the nutritional value of the product to reduce the incidence of cardiac disease or hypertension in future.

IMPACT ON PRICING

COVID-19 has negatively impacted the entire supply chain of balsamic vinegar, which has resulted in the increase in prices of balsamic vinegar. The disrupted raw material supply during the pandemic and restricted manufacturing activities has resulted in limited availability of availability of balsamic vinegar in the market.
During pandemic, the demand for balsamic vinegar has increased due to its nutrition benefits, but however, the limited product availability in the market has resulted in the increase in the prices of balsamic vinegar.

IMPACT ON SUPPLY CHAIN

COVID-19 is an infectious disease which originated in China with flu-like symptoms including fever, cough, and difficulty in breathing. Food industry and service sector depends on the supply of raw materials from domestic and international suppliers. As many governments restricted the movement of goods across countries and locally, manufacturers had to halt production due to lack of raw materials. Also, limited transport option raises the shipment cost of the product. Thus, the lack of transportation affects the export of the balsamic vinegar products to the other countries. Owing the disturbance in raw material supply, the manufacturers of balsamic vinegar faced huge difficulties in the production of the products. Thereby, the COVID-19 pandemic has greatly affected the supply chain which further, adversely impacted the growth of balsamic vinegar in the global market.

AWARENESS ABOUT HEALTH BENEFITS OF BALSAMIC VINEGAR IS DRIVING THE MARKET GROWTH

Balsamic vinegar is a type of vinegar which is dark, flavored and highly concentrated. Global population is more conscious on health and demanding nutritional products during COVID-19 pandemic to strengthen their immune level. For instance, balsamic vinegar is enriched with electrolytes including potassium, calcium, phosphorous, zinc and magnesium which help to maintain fluidity of the body. Hence, the demand for balsamic vinegar has been increased among the population. In addition, balsamic vinegar is rich in antioxidants which help to reduce the free radicals in the body. Thus, consumers highly prefer balsamic vinegar in their food products during COVID-19 pandemic to raise their healing power. The increasing awareness about the benefits of balsamic vinegar is the major cause for the raising demand in the market. Moreover, balsamic vinegar has a capability to reduce the risk of hypertension and protects from cardiovascular disease. Similarly, balsamic vinegar additionally aids to increase the microbiota and improves the digestion.
Owing to the high nutritional benefits of balsamic vinegar, consumers are highly demanding for the products and increasing the market growth. The increasing demand for balsamic vinegar is stimulating the manufacturers to launch new balsamic vinegar products in order to satisfy the demand of the customers.
For instance,
Burren Balsamic has launched new Irish peat smoked balsamic vinegar in 2020. This product has a smoked flavor and thus, is an ideal choice for many food items.
Therefore, the increasing demand for balsamic vinegar owing to its health benefits is strengthening the market growth in the global market.

STRATEGIES ADOPTED BY MANUFACTURERS

Several manufacturers in the balsamic vinegar 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
The prominent players in the balsamic vinegar market are focused on strengthening their strategic partnership and distribution channels to deal with the COVID-19 situations and to cater to the increasing customer demand for balsamic vinegar products.
These manufacturers are applying strategies to cope up with situation by introducing products through online platform, offering products through distribution partners and even expanding their manufacturing operations in developing countries to shorten the supply chain. In addition, manufacturers are also focusing on the marketing strategies to grow the business..

CONCLUSION

During COVID-19 pandemic, almost every sector has been badly disrupted. The demand and supply of the raw materials and products are also disrupted due to extended lockdown. Many companies are losing their key revenues due to closed outlets and decreased production level. At the beginning of COVID-19 pandemic, several manufacturers shut down their production process and therefore, the demand for the fruit and vegetable ingredients has also risen. Also, the consumption of vinegar has risen among end user as the people are more aware of healthy lifestyle.
To expand the growth of balsamic vinegar, the manufacturers were attempted to launch innovative products with different flavors. Thus, the impact of COVID-19 pandemic has been boosted the balsamic vinegar market due to its health benefits. Thereby, the increasing usage of balsamic vinegar is observed among the consumers during pandemic condition and it’s projected to increase the market growth in the upcoming years.
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