COVID-19 Impact on Food Coating Ingredients in Food and Beverage Industry
INTRODUCTION
The COVID-19 has impacted almost every industry by surging in their consumption. The food coating ingredients market has several negative impacts of COVID-19 because many people prefer fresh and healthy food and turning health conscious. The food coating ingredients are used in many applications in food & beverages industry such as they are used in coating meat and meat products, bakery products, confectionery products and snacks.
Before pandemic, the consumption of bakery products, snacks and confectionery products were more as compared to the situation in the pandemic. The changing life style of people and their preference towards the ready to eat foods has boosted the food coating ingredients market growth. But during pandemic, the focus of people turned towards the healthy food products and thus decreased the demand for food coating ingredients.
But, owing to pandemic situation to increase the shelf life of several foods such as meat and meat products, the food coating ingredients were used because the extended lockdown has disrupted the supply chain in the food industry and thus for preserving the food products, the food coating ingredients were used.
The consumption of preserved food was decreased during the lockdown because people were focusing on consumption of healthy foods. Many companies have closed their manufacturing facilities due to limited supply of raw material and disturbed demand for food coating ingredients. Some companies were operating on very limited work force due to social distancing. The raw material supply was disrupted due to disruption of transportation and sealing of boundaries of countries.
INITIATIVES
The COVID-19 outbreak has affected almost each sector in the economy and food coating ingredients market is one of them. The extended lockdown has badly disrupted the demand and supply of food coating ingredients due to transportation issues. But in the hard situation, many companies were taking initiatives for the availability of products in the market.
- At Cargill, our values -- do the right thing, put people first and reach higher -- continue to guide us as we navigate COVID-19. As we work around the clock every day to support our workforce, suppliers, customers and the communities in which we live and work, Cargill draws on our decades of experience navigating major global issues to mitigate the ongoing impacts of the pandemic.
- Cargill, Incorporated
- As the coronavirus (COVID-19) virus continues to spread across the world, we’re working around the clock to deliver solutions that help with prevention and control of this global pandemic, while keeping our employees safe. DuPont Personal Protection today announced that face coverings made with DuPont Nomex may be used along with (FR) garments, such as those made of Nomex, in response to the protection needs of COVID-19. When used as face, nose and mouth coverings, properly designed masks, balaclavas, gaiters and hoods made with Nomex may help meet the Centers for Disease Control and Prevention (CDC) social distancing guidance on wearing masks in working environment that also require FR protection.
- DuPont
- As an essential supplier, Ashland’s global manufacturing sites have continued to operate safely throughout the COVID-19 pandemic. Our supply chain continues to receive, process and ship customers’ orders thereby making and supplying the critical specialty products that our customers and the world needs.
- Keith Silverman, PhD, MPH, Senior Vice President of Global Operations, Quality and Environmental Health & Safety at Ashland
- Maintaining continuity in the entire food supply chain is essential now more than ever to ensure people continue to have access to the nutrition they need. We understand that ADM plays a critical role throughout that supply chain and we have business continuity plans in place for various scenarios and are prepared to respond if we see potential impacts on our business operations. We are taking the potential risks of the coronavirus very seriously and are committed to doing our part to keep our colleagues, their families and the communities where we operate safe.
- ADM
- For AGRANA, the health of its own employees and the ability to deliver products have top priority. We therefore support all measures that slow down or stop the spread of the COVID-19 pathogen and have defined appropriate guidelines for the prevention of COVID-19 at all locations. We want to make the necessary contribution to contain the spread of COVID-19, protect the health of our employees and thus guarantee the continuity of our business processes and the supply of our customers as much as possible. As a producer of food, we are part of the "critical infrastructure". A continuation of our production operations will ensure that the population is supplied with our products and also the jobs of our employees. We take our responsibility as a food supplier and employer seriously by coordinating our actions on a daily basis and making careful decisions.
- AGRANA Beteiligungs-AG
- We are constantly monitoring developments regarding the coronavirus/COVID-19 outbreak and continue to follow State, Federal (CDC) and World Health Organization (WHO) advice relevant to our sites. Safeguarding the health and well-being of our employees and their families, while continuing to help our customers supply food end-consumer products is our priority.
- PGP International
- The health and safety of our people is our top priority and in response to the COVID-19 (coronavirus) outbreak we have taken and continue to take wide-ranging precautions in our operations to keep our employees safe. These actions include stopping all non-essential travel, supporting remote working, postponing non-essential visits to our sites and sharing the latest hygiene advice from public health authorities. We have also introduced additional controls at every facility to continue to uphold the high standards of safety and quality expected of our ingredients, and to ensure their availability to our customers allowing us to play our part in maintaining consistency of supply into the global supply chain. We continue to monitor this fast-moving situation very closely.
- Tate & Lyle (Food Ingredient Company)
- We’re committed to doing everything we can to help the Global FoodBanking Network (GFN) with their efforts to combat hunger and provide food to people who need it around the world. In response to COVID-19, we have increased our donation to GFN and contributed USD 50,000 as the number of families that need support from local food banks during this pandemic has dramatically increased. Based on Ingredion’s donation, GFN’s Network of food banks will be able to provide an additional 240,000 meals to people in need during this global crisis, which helps us fulfill our purpose of bringing the potential of people, nature and technology together to make life better. If you can help, please consider donating to a food bank in your area of the world. Regrettably, this crisis is just beginning and GFN needs your partnership and support as they are on the front lines helping families. You can support these hunger fighters by making a donation directly to a food bank in your community.
- James P. Zallie, President and CEO, Ingredion Incorporated
- Across the globe, Kerry teams have taken on challenges to ensure the safety of all our employees and continued support for customers to ensure the global food supply chain remains intact for consumers. Throughout this turbulent time, our purpose, Inspire Food & Nourish Life has been at the core of every decision we have made and our values have been our guide as we work to achieve our three goals:
- Safeguard the health and safety of our employees
- Ensure continuity of supply for our customers
- Support our local communities
CONCLUSION
The COVID-19 has impacted whole economy in positive or in negative ways. Almost each and every sector has disrupted due to COVID-19 pandemic. The extended lockdown has disrupted the supply and demand of food coating ingredients and thus lead to the decreased demand of the food coating ingredients. As the food coating ingredients are used on various food products for various purposes and also helps to increase the shelf life of food products. But, thus their demand has increased for some perishable food products due to the lockdown, many food products were in the shops itself. Also, people were focusing more on the consumption of health and fresh food options thus the demand for food coating ingredients were also slower down during the COVID-19.
Many companies have shut down their manufacturing facilities or the companies were operating in very low workforce due to government rule for social distancing. Some companies have lost their key revenue due to the less demand for food coating ingredients. But the demand for food coating ingredients may increase in upcoming days as the supply chain will become normalized.
The market for food coating ingredients is expected to grow substantially during the coming years due to the rising awareness about their productivity. But due to the social distancing, many manufacturers and start-up companies are facing restrictions to bring their products in the food coating ingredients market.
Thus, the impact of COVID-19 on food coating ingredients market is neutral as the demand will increase for the food coating ingredients as the supply chain for the food coating ingredients normalized.
