COVID-19 Impact on Pharmaceutical Packaging in Chemicals and Materials Industry

COVID-19 Impact on Frozen Food Market in Food and Beverages Industry

  • Food & Beverage
  • Jul 30, 2021

COVID-19 Impact on Frozen Food Market in Food and Beverages Industry

INTRODUCTION  

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 latest situation report by World Health Organization (WHO) stated 175 million cases of the corona have been reported globally and 4 million patients are dead due to the coronavirus. On a slightly positive note, a total of 158 million people have recovered and total of 2 million vaccine doses have been administered as well.

Due to growing positive COVID-19 cases across the world, government has decided has to enforced lockdown in most of the countries in order to restrict the chain of virus which are highly affected to each and every type of different industries and also this pandemic and lockdown leads to harsh impact on every industries business across the word.  

The global pandemic of coronavirus has highlighted the complex interdependencies which exist within the global sector. The pandemic outbreak has created extreme uncertainty in globally market growth.

Frozen food packaging is when we freeze the food items to expand their lifespan by some extent depending on their moisture content. The common choices for frozen food packaging include tin cans, cardboard, laminated paper, and flexible and rigid plastic materials. Fresh vegetables, fruits, and dressed meat also use simple shrink wraps. 

Growing demand for ready-to-eat and convenience food products owing to the busy lifestyles due to hectic work life schedules and an increasing number of working individuals is in turn expected to favor the frozen food packaging market growth. They provide longer shelf life which can also be expected to drive the growth of the market.

However, due to outbreak of COVID-19, the demand for such products became low because of the industrial shutdowns. Also, people have grown out to be more concerned about safety and good brand quality which is not exactly ensuring in frozen foods, thus hindering the growth of the market.

UPCOMING FUTURE OF FROZEN FOOD MARKET

Frozen food manufacturers are using new technologies such as IQF technologies to improve yield and quality of food. The IQF method involves transferring the individual food items on a conveyor belt into a blast freezer that quickly freezes the items. With IQF method, every individual piece of food is frozen separately, as opposed to bulk or block freezing. This method results in better quality products with high nutrition and less wastage.

IQF reduces the dehydration of the IQF products and prevent snow formation in the freezer.   Lower product dehydration translates into higher profitability for the food processor. Furthermore, the products will maintain their natural volume, shape, and color to be sold at a premium price.

In the individual quick freezing technology, the total energy saved is substantial (20-30%), due to the frequency converters installed on each fan. This means that the food processor can adjust the speed of the fans based on the type of the product frozen. Furthermore, this setup requires less refrigeration in order to cool down the heat produced by the fans.

IQF freezer ensures the gentle handling and good separation of the products, in all stages of the freezing process, even with extremely sensitive products. The end result is thereby a premium product with a natural appearance.

PRICE ON PRICE

Due to outbreak of COVID-19 pandemic, there are significant negative impacts on revenue growth of this market. The installation and maintenance of these machines is also a factor that may hamper the revenue growth of the global frozen food packaging market.

Manufacturers are depending on the supply of raw materials from domestic and industrial area but due to restrictions across the world there is lack of it. So production has also halted. Prices of the products have reduced gradually especially post pandemic period as the usage has declined amongst the end-users.

Due to the pandemic, there is delay or various type of limitation faced by the manufactures to fulfill the end product delivery, which results in less availability of product in the market. This is why, the cost of available product have increased by several factors. Also due to the outbreak of COVID-19, pandemic has forced manufacturers to find new contract manufacturers and suppliers for move manufacturing activities to different or new facilities location that are less impacted by the outbreak.

In current situations, most of the countries are facing the second wave of COVID-19 due to which manufactures are facing difficulties with existing component supplier or contract, manufacturer which are at risk or closed or not being able to fulfil supply requirements due to challenges such as extended periods of shut down, which has led to price fluctuation of frozen food products.

IMPACT ON DEMAND

Frozen food packaging witnessed a dip in the demand due to decline in consumption as well as the fear of contamination through manufacturing facilities. So, with the decline from end-users the demand for related sector has faced a major downfall. Due to lockdown, many food processing industries have been temporarily halted. This has impacted the food packaging market along with the other products.

For instance,

  • Manufacturers such as Emmerson packaging company are making environment friendly and organic products to increase the online purchases of frozen food products.
  • Stand up pouches have multiple advantages over traditional frozen food packaging. They make better use of available retail space by presenting a much larger customer-facing graphic panel, and are much lighter than traditional rigid packaging, making them easier and less expensive to transport.
  • Emmerson Packaging helped lead the way in developing a truly recyclable frozen food package with the introduction of SmartPack. This sustainable option provides the premium look and performance of a traditional laminate, but uses innovative energy-curing technology to reduce the number of films needed to produce the package.

Thus, the COVID-19 affected the demand of frozen food packaging market and to recover from this, manufacturers are innovating environment friendly, organic and recyclable frozen food packaging products. Additionally, they started focusing on selling goods online so the customers can easily buy products, it will increase the company growth as well in near forecast period.

IMPACT ON SUPPLY CHAIN

The COVID-19 outbreak has disrupted the supply chains for the entire manufacturing sector. According to the Institute for Supply Chain Management, 75 per cent of companies are reported that the disruptions in the supply chain due to restriction in the transportation by the coronavirus. Also, 50 percent of the companies are reported the unexpected delays in receiving in the orders, a problem compounded by supply chain information blackout. 

Due to COVID-19 restrictions, the supply chains were disrupted globally. Companies are facing issue with the raw materials as most of the countries are under complete shutdown. In this situation, both manufacturers and consumers are facing issues with the timely availability of raw materials. The restrictions over transportation are another factor that affected the supply chain.

For instance,

  • Geographically company diversified the supply chain to reduce the risk of any one region
  • Company are planned use multiple sources

CONCLUSION

Pandemic has taken a toll on every aspect of life, including the global economy. With the significant downfalls in many sectors, a collaborative effort of government, industry players, and consumers can win the fight against COVID-19.

It still continues to inflict the world with appalling economic and social dilemmas, capable enough to leave severe backlash on the economy for the next several years. The first wave had already inflicted severe blows to the population as well as the economy. The currently experiencing second wave is expected to be more disastrous not only to the masses but also to consumer goods markets.

The outbreak of COVID-19 has had a severe impact on the frozen food market as government announced full shutdown which declined the consumption level of packaging foods. Supply chains were disrupted globally and end-users couldn’t get product at required time. Additionally, many governments restricted the movement of goods across countries and locally, manufacturers had to halt production due to lack of raw materials.  All these factors restrain the growth of frozen food market, globally.

However, industries have introduced new technologies to promote the growth of the market. Post COVID-19’s first wave period, people are buying products online with more precaution as consumers’ wants safety first with good brand quality. This might revive the market growth.