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How COVID-19 Impacted on Potato Chips in Food and Beverages Industry ?


COVID-19 Impact on Potato Chips in Food and Beverages Industry
Countries worldwide have faced numerous consequences due to the COVID-19 outbreak. Most of the industries have been affected due to the COVID-19 pandemic, both in positive and negative ways. The pandemic has disrupted the economy of the U.S., which is considered one of the major economies in the world, by disrupting all the businesses. Government restrictions, shutdown of the businesses, and income losses are some of the reasons behind the disruption of the economy. However, the demand for some products grew even at the time of COVID-19 pandemic. Snacks, such as potato chips, tortilla chips, and others, have grown in demand during the COVID-19 as people were more concerned about stocking up food edibles. Consumers shifted to budget spending on ready-to-eat products with long shelf life products such as potato chips, tortilla chips, and others. Key players in the market have acquired small companies during the pandemic as the demand for potato chips was high.
For instance,
· In January 2020, J.R. Simplot Company acquired Pinnacle Agriculture. This acquisition represents a significant and important milestone for the J.R. Simplot Company, and it will help the company reach new heights.
However, disruption in supply chain has directly affected the production of various small potato chips companies, further decreasing the growth rate during COVID-19.

STRATEGIC DECISION BY GOVERNMENT TO BOOST THE MARKET

The step that the government is planning to take towards the comeback of the food industry is to make the industry less dependent on imports. Most of the manufacturers have decided to reduce their dependence on China for supplies. Many companies are trying to shift their supplies from China to other countries. This is one of the steps suggested by the government in discussion with the potato chips manufacturing companies to keep the supply chain unhindered. The new rules and mandates were introduced and implemented for the people's safety such as social distancing, utilization of masks and sanitizers, and many others.

STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE

In 2020, the global potato chips market witnessed positive growth. However, the manufacturers of potato chips faced significant challenges during COVID-19 due to lack of transportation and disruption in the supply chain. 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. The premium potato chips are chips that are made with high-quality materials. Many manufactures have currently launched many new products during the COVID-19.
For instance,
· In February 2021, Sietefoods.com introduced a new line of kettle-cooked potato chips. This launch will increase the customer base of the company.
Thus, the following instances show that the global potato chips market in countries U.S. and many others are expected to grow drastically. Furthermore, with the impact of COVID-19, the market for e-commerce and online shopping is likely to grow and lead the market in the coming years.

IMPACT ON SUPPLY CHAIN

As potato chips ingredients are derived from vegetables such as potatoes, the fluctuation in supply of these materials directly impacted the potato chips supply. Due to the outbreak of COVID-19, the supply chain suffered drastically. Manufacturers of raw materials had stock, but they were not getting enough demand. Moreover, companies faced several issues with the supply of raw materials as most of the country was completely shut down. In this situation, manufacturers faced untimely availability of raw materials.
Labor availability was another factor that affected the supply chain of potato chips. At several parts, the manufacturers were struggling for raw material reach, and at the same time, some were struggling to deliver the product. For a few manufacturers, the end-product was ready but could not reach their customers due to restrictions on transportation and thus losing revenue. Thus, the impact on supply is not due to one factor but was from multiple points.

IMPACT ON PRICE

The prices of potato varieties such as russet, yellow, red, white, fingerling, and purple or blue potatoes witnessed a decline due to outbreak of the COVID-19. The U.S. has significant demand for raw materials such as potatoes and this demand is generally fulfilled with local production.
For instance,
· In May 2021, Frito-Lay North America is the convenient foods division of PepsiCo, Inc., they issued a voluntary recall of select 16 1/8 oz. bags of Ruffles All DressedPotato Chips because they may contain undeclared milk ingredients, because People who have an allergy or severe sensitivity to milk run the risk of a serious or life-threatening allergic reaction if they consume the product contained inside the recalled bags, this announcement was published by the FDA as a public service.
· In August 2021, Ballreich Snack Food Co. Tiffin, Ohio, recalls its 1.5oz, 2.75oz, and 7oz packages of BAR-B-Q Potato Chips due to a potential contamination Salmonella. An organism which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems.
Therefore, case of such recalls of products, containing allergenic ingredients and contamination of the products hampers the company popularity and revenue. T

IMPACT ON DEMAND

The demand for potato chips faced an incline due to the COVID-19 outbreak across the U.S. As most of the countries were under lockdown, the consumption of potato chips increased as it comes under ready-to-eat food items, which witnessed a significant demand in the lockdown period.
Thus, the potato chips industry witnessed an incline in the fiscal year 2020 due to the breakout of COVID-19. As the consumption of the potato chips and other type of snacks increased, major players in the food experienced an increase in revenue in fiscal year 2020-2021. In addition, there have been changes in the budgetary support from the government. Another application of potato chips is in confectionery products, convenience food product, and other industries and households. Since these industries have registered high sales during this pandemic, the demand for potato chips has also grown.

CONCLUSION

The potato chips is mainly used as a snack food. Owing to COVID-19 induced lockdown, the sales of potato chips increased as consumers resorted to filling their shelves with adequate food supplies.
Few manufacturers faced issues with supply of raw materials. At the same time, the manufacturers struggled to maintain the supply as per the demand. Also, the gap in supply chain hampered timely availability of end-product in the potato chips market. However, the situation has recovered, and the potato chips market is likely to see normalized growth as compared to 2020 levels as panic buying has disappeared owing to recovery of COVID-19 cases.
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Growing demand for rice protein-coupled with changing lifestyles and healthy eating habits will ultimately increase the demand for rice protein. However, inflated prices of rice protein make it hard to afford for the consumers in developing countries and middle-class consumers coupled with a lack of awareness about rice proteins, which is expected to hamper the market's growth. AFTERMATH OF COVID-19 Post the pandemic, the demand for rice protein would be increasing as there won't be any more restrictions on movement, and the procurement of raw material would be easy. The manufacturers could easily provide rice protein to the end-users such as sports & energy nutrition, bakery & confectionery, beverages, dairy alternative, and other industries. In addition, consumers' eating habits and lifestyles have been changed as they opt for gluten-free products enriched with protein content coupled with a rising trend of veganism will increase the demand for the rice protein market globally. Thus, the growing demand and inclination towards a healthy lifestyle and protein-rich food consumption are projected to increase the demand for rice protein globally. IMPACT ON DEMAND AND SUPPLY CHAIN The demand and supply for rice protein had initially decreased during the beginning of the COVID-19 pandemic because of lockdown. Consumers were only focusing on purchasing necessary basic products and weren’t focusing on rice protein products. In addition, due to restrictions on movement, there was a halt on the manufacturing process of rice protein as COVID-19 has led to a loss of labor, lack of availability of raw material, and others. But after the lockdown was lifted, the demand for rice protein products has increased as the awareness regarding the functional properties as well as health benefits of rice protein. Consumers have become more aware of the protein-rich content of rice protein and are opting for functional food like rice protein products. 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IMPACT ON PRICE The demand for rice protein is increasing after the Covid-19 outbreak which has directly increased the prices of rice protein. The manufacturing process of rice protein is comparatively tricky and time-consuming as it involves the process of grinding and enzyme treatment for separating starch or carbohydrates from protein. The raw material used is also of high quality. Hence, all these factors make the total price of rice protein higher. Moreover, during the COVID-19, the supply chain has been affected, which has directly impacted consumers' demand of consumers, but after the pandemic was over, there was a sudden surge in demand for rice protein as the awareness regarding the health benefits of rice protein has increased among consumers and other manufacturing facilities such as food and beverage industry, which require rice protein as an ingredient. The rising demand for rice protein after the pandemic for various end-use has increased the prices of rice protein. STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE In 2020, the market share of rice protein was significantly affected by the COVID-19. The manufacturers of the rice protein were facing a significant challenge during COVID-19 due to lack of transportation and disruption in the supply chain. As a result, the prices of rice protein increased significantly. The manufacturers should take certain strategic decisions to gain a competitive market share post-COVID-19 such as label-centric marketing strategies or production of premium quality products. To gain a significant market share, they are focusing on labels such as “plant-based protein”, “vegan”, “soy free” and others to attract more consumer base. Moreover, several manufacturers are more focused on producing premium quality products to fulfill the demand of consumers. These strategies could help the manufacturer in gaining a competitive share in the rice protein market in the forecasted period. CONCLUSION COVID-19 pandemic has affected almost all industries, including the rice protein, across the world. Also, the outbreak has affected the economy on a global level. The COVID-19 pandemic has led to the lockdown worldwide, impacting the demand and supply of rice protein. But after the lift of the lockdown, the demand for rice protein has suddenly increased as the demand for protein-rich food products increased. With the growing trend of veganism and change in consumers’ lifestyles and eating habits, the demand for rice protein has increased, boosting the market's growth. Moreover, after the COVID-19 pandemic, consumers prefer functional food products that include rice protein as an ingredient coupled with the rising awareness of the health benefits of rice protein among consumers is expected to propel the growth of the market. However, with the rise in demand, the prices of rice protein are also increasing, which may hamper the market's growth as it makes it hard to afford high-priced products in developing countries. Read more COVID-19 Resources.
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Tomato Basil Pasta!
Blow your MIND" Tomato Basil Pasta! - No Straining, just Stirring (Please click on pic then click SHARE so recipe saves to your timeline. You can refer back to it later!) Pasta, Tomatoes, Veggie Broth, Olive Oil, and Seasonings (details below) Throw it all in the pot, INCLUDING the uncooked Pasta, and cook! - Bring it to a boil, then reduce to a simmer. The starch leaches out of the pasta and makes a rich, warm sauce for the noodles. The other ingredients cook right along with the pasta Ingredients 12 ounces pasta (I used Linguine) 1 can (15 ounces) diced tomatoes with liquid ( I used zesty red pepper flavor) 1 large sweet onion, cut in julienne strips 4 cloves garlic, thinly sliced 1/2 teaspoon red pepper flakes 2 teaspoons dried oregano leaves 2 large sprigs basil, chopped 4 1/2 cups vegetable broth (regular broth and NOT low sodium) 2 tablespoons extra virgin olive oil Parmesan cheese for garnish Directions Place pasta, tomatoes, onion, garlic, basil, in a large stock pot. Pour in vegetable broth. Sprinkle on top the pepper flakes and oregano. Drizzle top with oil. Cover pot and bring to a boil. Reduce to a low simmer and keep covered and cook for about 10 minutes, stirring every 2 minutes or so. Cook until almost all liquid has evaporated – I left about an inch of liquid in the bottom of the pot – but you can reduce as desired . Season to taste with salt and pepper , stirring pasta several times to distribute the liquid in the bottom of the pot. Serve garnished with Parmesan cheese.