COVID-19 Impact on Food Micronized Salt Market in Food and Beverages Industry
The novel coronavirus has profoundly impacted all fields, including food and beverage, automotive, pharmaceutical, and many others. This pandemic has led to shutdowns of mass production and disruptions in the supply chain that have impacted the economies of virtually every nation in the world. Similarly, the pandemic had a detrimental effect on the food micronized salt industry. It not only disrupted the market and supply chain but also impacted production and demand. However, several research studies recognize the ability of salt to combat COVID-19, which thus, creates enough space to rebalance the micronized salt industry even in the face of persistent COVID-19 restrictions.
Growing awareness of health and wellness, rising demand for healthy foods, increasing demand for natural ingredients, and diversification of raw material base will add to the market demand for the global micronized salt industry. Moreover, the rising popularity of convenience foods and the acceptance of on-the-go and ready-to-eat snacks, combined with the growing awareness of health-conscious customers, is anticipated to contribute to the growth opportunities for the market in the coming years.
Moreover, high demand for clean label micronized salt of high quality is gaining high attraction amongst the consumers and also provides opportunities for the market players present in the global micronized salt market, which would further fuel the demand for the global micronized salt food industry.
However, companies also used bitterness blockers and masking agents such as L- lysine to suppress the bitter aftertaste of potassium salt using new technologies and techniques. Since the food industry is a major user of micronized salt, this is expected to restrict the market's growth potential.
SUPPLY CHAIN DISRUPTION
Food system disturbances due to COVID-19 are projected to harm access to micronized salt products such as vegetables, meat products, and dairy products. Due to the failure of farmers to grow or export them, resulting in less nutrient-rich food diversity on the market. In addition to growing costs due to limited and costly local transport options, food processors have faced difficulties obtaining raw materials including salt. Such logistical breakdowns have led to a high increase in stock levels and problems with the wastages which has further made it difficult for food manufacturers as they lack the substantial quantity of raw material to produce the final product. Moreover, with the restriction and lockdowns in place, a lot of manufacturers and distributors of bakery, confectionery’s faced severe problem in selling the product. As a result, it also impacted the overall demand and growth of micronized salt, as it extensively used in the formulation of this product in the industries. Owing to this issue and less production and sale during COVID-19, the net sales of micronized salt manufacturer companies has decreased substantially
The lockout of different plants and factories of micronized salt-based foods across the globe has affected the global supply chains and harms production, distribution schedules, and sales of materials. Different firms have already reported potential delays in the supply of products and a slump in future sales of their products due to restricted lockdowns and disruption in the supply chain
To recover from the loss due to disruption companies are looking for new ideas such as acquisitions, mergers, among others so that the COVID-19 and supply chain disruptions due to it will not affect the companies individually and also the market.
Companies also tend to expand their presence in other regions that helps them for increased sales and revenue in turn creating competition with the other market players.
For instance,
- In April 2020, CIECH salt Deutschland, a company of CIECH group constructed a new salt plant in stassfurt Germany. This modern plant was built to have a capacity to produce 450 tons of evaporated salt per annum. This new site will expand the company and increases production. Also, the company will place the leader position on the European market for evaporated salt.
MARKET OVERVIEW
Micronized salt has a wide range of uses in the food and beverage industry, thanks to its finely powdered nature, which is used to increase solubility. Demand for ready-to-eat food items has risen dramatically as a result of consumers' fast-paced lifestyle especially in the recent time
Micronized salt's growing success in the processed food industry is due to its quality and purity which is considered of the utmost importance in the pandemic time. Micronized salt, regarded as an ideal flavouring agent, increases the shelf life of vegetables and meat in addition to processed foods. Micronized salt is widely used in end-use applications such as milk and dairy products, baked goods and confectionery, and beverages which will fuel the market demand for the global micronized salt market.
EFFECT OF COVID-19 ON THE MICRONIZED SALT INDUSTRY
The COVID-19 impact still had a devastating impact on the global micronized salt industry, it led to disruption in the supply chain, demand, and production. But salt plays important role in the production of food and processed food. Micronized salt is also one of the prominent food preservatives used in processed and convenience food and it can be further treated with various additives such as herbs, and various flavours.
Additionally, the changing lifestyle of the consumers in regions such as North America, Europe, and South East Asia is demanding convenience food and they are more likely to prefer ready to eat food products. Most of these products use micronized salts as a preservative. This trend is expected to boost the market demand and market growth for the micronized salt in the pandemic. Furthermore, micronized salt is also used as a flavour enhancer in many food products.
Salt is one of the most essential elements for human health and human consumption. Various studies are going on regarding the potential benefits of salts to fight against the deadly virus infection.
For instance,
- Researchers in Edinburgh is testing the use of saltwater in the treatment of COVID-19. Researchers found that those who used the salty solution for nasal irrigation and gargling had a shorter cold, were less likely to pass it on to their families, had faster viral clearance, and were less likely to use pharmacy medicines.
- Prof Aziz Sheikh, director of the university's Usher Institute, said: "We are now moving to trial our saltwater intervention in those with suspected or confirmed COVID-19, and hope it will prove to be a useful measure to reduce the impact and spread of the infection.
Thus, more studies would prove the efficiency of micronized salt in battling the COVID-19 which would rebalance the growth of the micronized salt industry in coming years.
The market for global micronized salt during Covid is competitive and powered by a rise in the "health and wellness" trend and rising demand from customers for all-natural ingredients. There are few other factors that further fuel consumer demand across the globe, such as the abundance of raw materials, integrated supply chain, and diversifying the use of micronized salt across end-user industries.
Moreover, the manufacturers are consistently trying to maintain the growth & revenue of the company even during a pandemic by applying new strategies such as maintaining hygiene in workplace, paying more to the employees and providing the COVID – 19 protocols to the employees.
For instance,
- Morton Salt, Inc provided ongoing COVID-19 health and safety information, protocols and training for employees and extended enhanced protocols when working with customers, transportation carriers, and other business partners to ensure to continue to deliver safe and reliable products. In addition, they’ve provided greater flexibility with workplace policies at our production sites.
E-COMMERCE AND ONLINE TREND DURING THE PANDEMIC
In the view of pandemic maintaining social distancing, avoiding close contact has made the consumer shift its preference towards the online channel. The industries and manufacturers are also shifting from physical buying options to online channels. The same is been followed by the micronized salt manufacturers as they are slowly moving towards the online platform and delivering the raw materials such as micronized salt to the food processing industries directly
The ease of buying products through online channels offers greater flexibility and safety to the industries. It not only offers a discount but also ensures that the product ordered is reached on time. Therefore, the online channel will continue to expand and serve its customers along with the industrialist operating in the food processing sector in the coming years as well.
CONCLUSION
The COVID-19 pandemic was a significant disruptor in 2020, prompting the attention to move globally to the food industry. The global micronized salt market has also witnessed the same due to disruption in the supply chain, disruption in production and demand leading to a shortage in market share and demand. However, due to the increase in consumption of ready-to-eat and convenience food the market growth for micronized salt was stable. Due to growing acceptance of health and wellness and change in lifestyle the overall global micronized salt industry is expected to grow in the coming years. Moreover, the rise in case studies and research on consumption and usage of micronized salt-based food and its fruitful impact on the virus is further anticipated to increase the consumer demand in the market as there has been an increased understanding of health and immunity post-pandemic.
