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How COVID-19 Impacted on the Global Collagen Market in the Food & Beverage Industry ?

Impact of COVID-19 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.
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 %.
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.
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.
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Black Bean Flautas with Avocado Dipping Sauce
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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.
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