Analysis On Impact of COVID-19 On Global Protein Hydrolysates Market
The COVID-19 pandemic has significantly impacted the global protein hydrolysates market. The demand for protein hydrolysate products declined across various end-use markets as major activities were on hold. Consumers were conscious of their expenses due to loss of jobs and income constraints. Moreover, the competitive order of manufacturers has also witnessed a change.
However, rising awareness about protein diet due to the spread of COVID-19 to boost immunity and surge in plant-based and animal-based protein hydrolysates in the sports industry is expected to boost the market. Also, the rising trend of protein hydrolysate products by athletes in sports is expected to foster the market. In addition, these products offer many benefits, such as easy digestibility for infant nutrition, which will influence the growth of the protein hydrolysates market in the post-crisis. Moreover, the aftermath of the pandemic will positively affect the global protein hydrolysates market, as the demand for protein hydrolysates is expected to increase to boost immune health to fight viral diseases.
Food & beverages is one of the major industries suffering serious upheaval, such as supply chain disruption and shutdowns of manufacturing units amid the COVID-19 outbreak, which has hampered the global protein hydrolysates market. The U.S. is a significant manufacturer and consumer of protein hydrolysate. However, the lockdown of various plants and factories in the country has affected the global supply chains, thereby hampering the manufacturing, delivery schedules, and sales of protein-based products globally. In 2020, various companies have announced possible delays in product deliveries and projected slumps in their future sales due to disruptions in production and supply chain operations and management.
Aftermath of COVID-19 And Government Initiative to Boost Global Protein Hydrolysates Market
Governments of various nations have extended their support with financial and regulatory initiatives to boost the protein hydrolysates market in their respective countries. Many governments and legislative bodies of European countries such as the U.K. have set up regulations that set general compositional and labelling rules for food categories, including protein hydrolysates for infant food formulas.
Moreover, the Chinese government is also making efforts to balance out the consumption of plant and animal protein-based protein hydrolysates, which is also widening growth prospects for protein hydrolysates manufacturers across the country as China is one of the largest producers of protein hydrolysates in the global market.
In addition, different countries have developed various regulatory frameworks to protect consumers from risks and make them aware of the misleading and false claims of the protein hydrolysates. This step is taken to ensure satisfaction to the consumers, which will promote their sales if the product gets accepted and approved by the government of the respective regions. Scientific substantiation of the safety and efficacy of protein hydrolysates is an important aspect that can significantly impact the approval of health claims of bioactive peptides for market release. For regulatory approvals, the data from in-vitro and animal studies are not adequate to claim their health benefits. Health claims of hydrolyzed protein products must also be supported by substantial evidence from human studies. Various governments take this step to ensure consumers’ safety and satisfaction for protein hydrolyzed products, as these products derived from various food protein sources such as milk, whey, fish, and soybean have been on the market in several countries.
People are increasingly becoming concerned and conscious about their health and shifting towards adopting protein-rich diets, which is expected to boost the demand for protein hydrolysates. Key players in this market are improving the quality of these proteins and launching more fortified and advanced products, likely to fuel the demand for their products.
The players operating in the market have undertaken several strategies related to the market
In addition, rapid penetration of modern technology and social media has fostered the purchase of various products, including sports nutrition and infant formula, through online shopping sites in different regions. Substantial increases in online sales of these products is likely to create lucrative opportunities for key players in the global protein hydrolysates market.
The global protein hydrolysates market has witnessed intensive price volatility in the products as industrial production of hydrolyzed protein has been put on hold or running at low production capacity in many countries due to the pandemic. Manufacturers in the hydrolyzed protein market face various challenges such as shortage of raw materials, availability of labor, and disruptions in transportation of finished products. All these factors have influenced mainly the price of hydrolyzed protein products. This shortage of products and halt in production drove the prices a bit high during the pandemic era.
Impact On Demand
The COVID-19 pandemic is having a significant impact on the protein hydrolysate industry. Demand for the product has suffered across various end-use markets such as in sports and infant nutrition, worldwide supply chains were upset, and the competitive order of manufacturers/producers has witnessed a change. The shortage of demand has led the global protein ingredients market into an oversupply situation. Lockdown and movement restrictions have had a direct and immediate effect on the demand and supply of these products, and once the crisis comes to an end, the market is expected to gain back its fast-growing pace in a very short time.
Impact on Supply Chain
The COVID-19 has adversely affected the supply chain operations of many businesses, with lockdown policies affecting the movement of people and business operations such as transportation of goods and shortage of labor in production units and logistics chain. Since most countries restricted border movements due to fast-spreading COVID-19 disease, the volume of exports and imports reduced significantly due to which retailers in both online and offline distribution channels have found it challenging to deliver their products to the consumers. In addition, due to supply chain disruptions, end-users of hydrolyzed protein are also facing issues, and there is a need to balance out the supply and demand soon, which is expected to bring the prices of protein hydrolysates back to the normal range.
This COVID-19 pandemic has profoundly affected the global protein hydrolysates market. The global market for nutritional food products is growing in response to the demand for building immunity after the slowdown of the crisis of the pandemic. However, disruptions in the supply chain operations and low spending on expensive nutritional products, including protein hydrolysates, led to the stalling of the market growth during the COVID-19. However, a marked increase in global sales of a protein hydrolysate is anticipated to grow due to its benefits in many end-uses, such as fulfilling the nutrition requirements in sports-related uses and infant nutrition.