Overview
The COVID-19 pandemic has influenced the whole planet with its major impacts on the economy and businesses across the globe. The COVID-19 spread worldwide in unprecedented ways due to its high infectious and contagious nature and lack of availability of its vaccine. As a result, the greatest medical challenge in the 21st century is yet to be faced by physicians worldwide. Though the emergence of the virus can be traced back to Asia, many European countries along with the U.S. have been struck massively by the pandemic. The virus has spread across all regions ranging from North America, Europe, Asia-Pacific, Middle East, and Africa up to South America. The COVID-19 has been declared as a pandemic by World Health Organization (WHO) due to its increased spread across the globe. After the declaration of the pandemic, various countries announced the complete lockdown, such as India, China, and other Asian countries, to decrease its spread. According to the situation report of 27th October 2021 by WHO stated 244.3 million cases of the corona had been reported globally, and 4.9 million patients are dead due to the coronavirus. On a slightly positive note, a total of 6.7 billion vaccine doses have been administered as well.
COVID-19 IMPACT ON CHEESE BASED SNACKS MARKET
The COVID-19 pandemic has affected the global cheese based snacks market significantly. The persistence of COVID-19 for a longer period has affected the supply and demand chain as it got disrupted, and it became difficult to supply the raw material for cheese based snacks to the manufacturers, which put a halt in the manufacturing process. During the initial phases of the COVID-19 pandemic, the food industries witnessed a decline in the cheese based snacks market due to the movement restriction, de-globalization, loss of income, restriction on import and export of products, restriction in the supply of raw materials, among others. All these factors impacted the market growth negatively. The COVID-19 led to the lockdown worldwide, impacting the cheese based snacks market tremendously as it leads to lack of availability of raw material, labor shortage, shipping problems, and inflated prices, among others. The demand for cheese based snacks decreased initially as the consumers were more focused on buying necessary food products, but in the later phases of the COVID-19 pandemic, demand for comfort food such as cheese based snacks and convenience food products increased. Increasing demand for functional snacks is the key factor driving the growth of the market. Moreover, changing lifestyle and eating pattern of millennials is increasing the demand for on-the-go snacks such as cheese based snacks, which will positively impact the growth of cheese based snacks in the later phases of the COVID-19 pandemic. However, high-calorie content in cheese based snacks and increase in the prevalence of lactose intolerant population may hamper the market's growth.
Post the pandemic, the demand for cheese based snacks 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 cheese based snacks to household users and foodservice sectors such as restaurants, cafes, bars, hotels, cafeterias, and others. In addition, the consumption pattern of the young population has been changed, and they are replacing their meal with snacks, which will increase the demand for a variety of cheese based snacks. Moreover, the rising demand for comfort food to relieve stress and to cope up with hectic and stressed lifestyles will propel the growth of the market over the coming years. Additionally, the inclination of consumers towards convenience and comfort food products will boost the growth of the market. Thus, the growing demand for cheese based snacks and changing lifestyle and eating pattern of millennials is projected to increase the demand for cheese based snacks.
STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN MARKET SHARE
The rising demand for cheese based snacks as meal replacement snacks and comfort food among consumers has led the manufacturers to be involved in different developments such as innovative product launches, acquisition, partnership, and others to gain competitive market share. Additionally, manufacturers are partnering with other companies to offer new and innovative products of cheese based snacks. All these strategies opted by manufacturers help to gain more market share in the market.
For instance,
- In October 2021, Quinn launched the world's first vegan cheese-filled pretzel nuggets, which are made from lentil flour and a blend of vegetables. Also, the nuggets are gluten, soy, dairy-free
- In March 2021, SARGENTO FOODS INCORPORATED partnered with Mondelez International, Inc. for producing new Sargento Balanced Breaks Cheese & Crackers Snacks
- In March 2020, According to FoodBev Media Ltd, Bel Group acquired the majority of the stake in All in Foods in order to expand the plant-based food segment, including plant-based cheese
Thus, the increasing number of acquisitions, partnerships, launches by manufacturers to fulfill the growing demand for cheese based snacks among consumers even during COVID-19 is expected to boost the demand for the cheese based snacks as well as help the manufacturers in gaining more market share.
Impact On Demand and Supply Chain
The demand and supply for cheese based snacks had initially decreased during the beginning of the COVID-19 pandemic because of lockdown, due to which consumers were only focusing on purchasing necessary basic products and avoiding snacks and cheese based snacks. In addition, due to restrictions on movement, there was a halt on the manufacturing process of cheese based snacks 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 cheese based snacks products has increased as the demand for convenience food and comfort food has suddenly increased among consumers. Moreover, changing the lifestyle and eating patterns of consumers as millennials are replacing their meals with snacks such as cheese based snacks are the major factor boosting the growth of the market. Additionally, due to the COVID-19 outbreak, consumers are working from home and are not actively enjoying social lifestyles as before. Hence eating at home and turning to comfort food has become new normal. The rising demand is enabling manufacturers to launch new products in the market even during the COVID-19 pandemic.
For instance,
- In May 2021, Kerry launched vegan cheese slices for use in hot applications such as burgers and sandwiches, the product is gluten-free and palm oil-free and made from sustainable coconut oil. The product is made for food services
- In November 2021, GCMMF announced the launch of feta cheese, which has no fat in Gujrat, India. The product will be launched in the first or second week of December
- In March 2021, GCMMF planned to launch premium buffalo mozzarella cheese and has submitted their plan to the government for the same
The increase in the number of launches to fulfill the demand of consumers of cheese based snacks even during the pandemic is expected to boost the market's growth even after COVID-19. However, the calorie content is a major restraining factor for the global cheese based snacks market.
Impact on Price
The prices of cheese based snacks are inflated after the COVID-19, which may restrict the growth of the market. During the COVID-19, the supply chain of cheese based snacks was affected, which directly impacted the demand for cheese based snacks, but after the pandemic was over, there was a sudden surge in demand for cheese based snacks as there was increasing demand for comfort food among consumers. Hence, with surging demand, the price of cheese based snacks has increased a little, which may impact the growth of the market in the coming years. The rising demand for cheese based snacks after the pandemic as a meal replacement and as comfort food among consumers has impacted the prices.
Conclusion
COVID-19 pandemic has affected almost all industries, including the food industry 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 cheese based snacks. But after the lift of the lockdown, the demand for cheese based snacks has suddenly increased as consumers are demanding comfort food coupled with changing lifestyles and eating patterns, which has suddenly increased the demand for cheese based. Moreover, after the COVID-19 pandemic, consumers prefer nutritious snacks option such as cheese based snacks as they are rich in fat, calcium, and protein, and the rise in demand for cheese based snacks among consumers is expected to propel the growth of the market. However, high-calorie content in cheese based snacks and an increasing calorie-conscious population may hamper the market's growth. Therefore, the increase in demand for cheese based snacks among households or in restaurants, cafes, and others are anticipated to increase the global demand for cheese based snacks.
