The pandemic has already made the economy fall to a severe crisis where the world is trying the best to overcome. This outbreak has impacted globalization by forcing millions of people to shut down their operations. Across the world, people are following social distancing to minimize the infection. This has replaced their traditional plans of going out, movie and dinner with digital ones. As a prime result of this, food and beverage industry is taking the harsh hit by having a heavily reduced consumer base with tons of perishable items in the stock.
Social distancing, self-isolation, countrywide lockdowns have forced various industries to shut down for a while. The rapidly changing behavior of the consumers because of the pandemic is pushing the food manufacturing companies to take the lead at the forefront of the crisis globally.
Challenges in front of F&B industry during COVID-19
The Coronavirus outbreak has had a significant impact on the food & beverage industry and the interlinked supply chains of food production globally.
Wastage of Crops
With excess stock in the inventory, crops are going waste. Farmers are trying to pivot the supply to ordinary shoppers, but the changed demands of the customers remain a big problem. Darjeeling tea planters have warned that the pandemic measures will have crops go waste completely.
Scarcity of Human Resources
Maintaining self-isolation and social distancing at the peak in the current scenario, there is no workforce to process the cultivated harvest. Farmers are finding it difficult to supply the stock to the distributers. The regular quality checks on the production is pending because of no labor.
The closure of the restaurants and cafes has caused the oversupply of milk, leaving the dairy owners with no option other than draining it down. It is considered to be one of the major effects caused due to the pandemic in 2020. As per the dairy farmers of America, the disrupted supply routes have caused wastage of a million gallons of milk.
Changed Behavioral Demands
The changing habits of the customers to shop have a drastic impact on the demand and supply of the food and beverage industry. More people are now preparing meals on their own due to lesser options of take aways and home delivery. Shortage of raw materials and such supplies due to unforeseen demands is likely to create panic.
Nearing the Expiration Date
All the packaged food comes with an expiration date to highlight the shelf life of the product. While most of us have stocked our houses with maximum units, the production of these food items are in excess at the warehouses and manufacturing . The city-wise lockdown has limited the supply to the stores resulting the perishable items to expire soon.
COVID-19 – An Opportunity to Change the Sales Curve
Transitioning to the eCommerce industry by being opportunistic during the pandemic can be an excellent choice for retailers. COVID-19 for that matter, has made the customers shift to online grocery shopping and it is expected to see them follow the same trend post quarantine.
Online retailers with essential products have increased their sales and are continuously benefiting by upping their inventories during the outbreak. These retailers have the power to utilize their resources and reach wider customer-base. Some of the e-commerce services helping them boost their sales and build their brand are:
Fulfillment by Amazon is one of the most useful Amazon services for the sellers. During this time when the delivery of the products is the major pain for the sellers, Amazon fulfillment offers a sigh of relief to the sellers. FBA Team is constantly working to deliver the essential goods to customers on priority basis and help them deal with the pandemic without panic.
Build the catalog online to reach the potential customers. List the products on e-commerce marketplaces for buyers with all the relevant information. Upload the multiple angle pictures of the product for buyers to identify the product. Write a detailed description about the product featuring all specifications to make an informed decision.
Making a presence on social media platforms is a great way to boost sales online. With a positive approach, using the right techniques through SEO, marketing or advertising , sellers can build their brands and make loyal customers.
What to expect in the coming weeks?
Keeping in mind the changing demands and behavior of the customers on what to buy and eat, the food and beverage industry is expecting the few up-comings during the outbreak.
- Since consumers have switched to online shopping, and the e-grocery sales are likely to hit the maximum of all.
- Consumers have been utilizing the lockdown by looking for inspiration on social media and demonstrating their cooking talents that are making most of the people cook from scratch. Larger demand of raw supplies for baking and cooking.
- While pantry items are in use throughout, new product sales are likely to rebound in the coming weeks.
- Fewer trips, and more shopping carts are likely to see a rise post COVID-19.
- Notably, the food packaging companies have seen an increased shift in the sale of larger packs in the beverage and the snacks categories by the consumers.
The Coronavirus pandemic has largely spread on global level and has negatively affected the establishments. With the changing mindset of the consumers, the forced lockdown has made the operations of the food processing companies and the food & beverage production undergone a critical crisis. Sellers of these category needs to take immediate decisions to turn the situation around and yield the opportunity to garner huge sales.