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

COVID-19 Impact on Health and Wellness in Healthcare Industry

  • Healthcare
  • Apr 19, 2021

COVID-19 Impact on Health and Wellness in Healthcare Industry 

OVERVIEW

The COVID-19 has posed a compound challenge in front of different industries which has badly impacted the worldwide market. However, it has boosted the growth of companies involved in health & wellness as there is great need of such products.

Health & wellness refer to the state of complete well-being of the body, mind and spirit. Some of the important aspects of the health & wellness industry include personal care/beauty, nutrition, weight management, fitness, preventive/personalized medicine and others.

COVID-19 has most positively impacted the global health & wellness market. During the pandemic, more and more consumers prioritize their mental & physical health. Thus, during this terrifying time, health & wellness products provide consumers with a sense of individual control, help cultivate inner calm and offer much needed emotional control.

For instance,

  • A UCSF Coping & Resilience Program by the UCSF committed towards supporting well-being during our responses towards pandemic. It acknowledges the stress, fear, anxiety and other complex emotions.

The COVID-19 stimulated the growth of health & wellness products by re-prioritization of consumer values including an increasing focus on health in a holistic manner. The wellness has become a lifestyle rather than an occasional activity and encompasses many angles of consumer’s daily life.

PRICE IMPACT

As no treatment has been discovered yet for coronavirus, the fear of getting infection led the people to remain safe at their home as a result of which various businesses around the world are suffering a lot involving health & wellness companies among others.

The coronavirus has affected the various regions of the world and caused widespread closure of companies and local manufacturing plants. This lockdown and isolation has adversely impacted the global economic activity.

The growing healthcare market comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. Whereas, the wellness market comprises of three segments: nutraceuticals, alternate therapies and fitness and slimming.

During the last couple of years, people throughout the world have become more self-aware about the importance of health & wellness. Achieving great mental and physical health entails diving deep into the health & wellness industry.

For instance,

  • Rising demand of nutraceuticals with medical benefits have led to increase in tax subjected to 18% by FSSAI making these products considerably more expensive than before.

There is currently a shift towards a value-based healthcare market in which price and purchase decisions are based on outcomes. Since the outbreak of COVID-19, the consumers have rapidly shifted their behaviours to both better protect themselves from the virus and adapt to various social distancing requirements.

With supplies of many raw materials becoming harder to secure due to the pandemic, the price volatility may not be just a temporary phenomenon. The cost of production has shot up for the manufacturers because of higher input costs, particularly raw materials.

The COVID-19 pandemic has declined short-term potential growth opportunities for the health & wellness industry. Moreover, the increasing prevalence of COVID-19 all around the world is responsible for creating a restrained effect on global health & wellness market.

At this point, it is hard to approximate the huge costs associated with impact of COVID-19 but it is safe to say the negative financial effect will last for many years.

IMPACT ON DEMAND

The coronavirus has affected the various regions of the world and caused widespread closure of companies and local manufacturing plants. This lockdown and isolation has adversely impacted the global economic activity.

Surge in COVID-19 cases have increased the consumer demand for vitamins, minerals and supplements as customers look to support their immune, health, boost overall wellness and reduce anxiety.

The products and services that embrace the principles of prevention and protection may find a stronger relevance among consumers today amid COVID-19 pandemic. During the pandemic, consumers are focusing more and more on necessities and foregoing non-essential luxuries. There has been a surge in demand for immunity-positioned supplements including Ayurveda medicines and products as consumers pursue different ways to combat the virus.

For instance,

  • In March 2021, The Economic Times noticed a Substantial increase in demand for natural products because of COVID-19. The pressure of pandemic has led to a big growth in the demand for Ayurveda products.

COVID-19 perhaps dictated a bigger shift in the healthcare sector by bringing about a radical change in the way people consumed health supplements. This has led to significant changes in lifestyle. The demand for personal hygiene and homecare products has increased due to the growing awareness among consumers in the wake of COVID-19 pandemic. Manufacturing companies believe that pandemic has made consumers more aware of need to maintain hygiene at personal level as well as home to reduce chances of infection.

Thus, COVID-19 pandemic has resulted in a slight shift in the paradigm of what we consider to be essential.

IMPACT ON SUPPLY

The COVID-19 situation has led to overall disrupted supply chains for every market. The sudden outbreak of COVID-19 and its subsequent impact on restrictions on trade and movement of goods has resulted in shut down of vast portions of the global economy resulting in disrupted supply chains due to limited materials and workforce and slowdown or stopping of manufacturing.

Before COVID-19, manufacturing supply chains were extremely effective but concentrated. Coronavirus has significantly transformed every aspect of the global supply chain across industries.

However, there are three main adverse effects of supply chain disruptions in the health & wellness sector which impact on new product launches, impact on manufacturing units and impact on marketing and communication channel.

For instance,

  • Poppi, a brand of functional prebiotic soda infused with apple cider vinegar was poised to make its debut at the show. The company was previously known as Mother Beverage and intended to unveil its new brand identity and sodas at Expo West. The cancellation of Expo West amid COVID-19 have resulted in devastating effects for several companies who were in process of rolling out new products before the outbreak.

STRATEGIC DECISIONS BY MANUFACTURERS

The companies are undertaking strategic initiatives such as new product development and venture capital investment for creating greater opportunities in both developed and developing countries and expanding their product portfolio.

For instance,

  • P&G, the world’s largest consumer goods company bought the vitamins and supplements business of pharmaceutical group Merck for USD 4.20 billion in 2018.

The instant impact from COVID-19 has quickened the execution of virtual trial-related technology. However, to overcome the provocation caused by COVID-19 to clinical development, bolder and more metamorphic changes must be executed in a structured way by visionary industry leaders.

Thus, the companies operating in health & wellness market are embracing several strategies including new product development, venture capital investment, strategic collaborations and agreements and product portfolio expansion. These strategic decisions by the companies are anticipated to provide new opportunities for the market players operating in global health & wellness market. 

CONCLUSION

The COVID-19 pandemic has led to restrictions all across the borders which led to disruptions in supply chains. However, the rising demand for health & wellness products led to an increase in the market. Moreover, various types of strategic initiatives taken by market players will help to provide new opportunities in the industry.

Now, as the instant crisis transform into a semi-permanent state, health & wellness companies and sponsors need to take steps to work around the virus.