Ritika Bahl, CMO & Spokesperson, Annakoot, 0
The Covid-19 pandemic that struck us all out of the blue has been extremely detrimental for the global economy. It may have started as a health emergency, but it has resulted in the complete obliteration of the global economy. However, it is noteworthy that while some sectors have been suffering, others have managed to thrive - FMCG and F&B being two of those.
When the lockdown was imposed, people started cutting down on all luxury expenses. They became thrifty and started saving up for future emergencies. However, two sectors that didn't witness a fall in demand were FMCG and F&B. While the local shops were s shutdown because of the lockdown, people turned towards online shopping. Food aggregators and grocery aggregators were able to deliver goods to people's doorsteps. However, what lept the FMCG sector alone during the extended lockdown was the demand for hygiene products.
How sanitization has influenced the FMCG industry
Ever since the pandemic struck our shores, we've become more health-conscious than ever. People have started talking sanitization quite seriously as it is the only way to prevent the virus from entering our bodies. The Indian hand sanitizer market had been growing at a steady CAGR of 14% from 2014 to 2020. However, after the pandemic started causing a rampage in the country, the demand suddenly skyrocketed, creating a demand-supply gap and learning to the inflation of prices.
To fill this gap and to make the most of the opportunity, many FMCG players - big and small - dived headfirst into the sanitization business. Owners of wine distilleries and cosmetic companies quickly made adjustments in their infrastructure to support the new venture. It was a wise choice, both in terms of business and humanity. People are now getting the products they need to keep themselves safe from the virus and businesses have found a way to survive during an incredibly difficult time.
Globally, the demand for hand sanitizers grew by 1400% from December 2019 to February 2020. While the
Many FMCG giants have ramped up the production of hygiene products to meet the growing demand. The demand for hygiene products is so high at the moment that the businesses have been able to compensate for the losses incurred during the early shock of Covid-19.
Ever since the pandemic struck our shores, we've become more health-conscious than ever. People have started talking sanitization quite seriously as it is the only way to prevent the virus from entering our bodies
How sanitization has influenced the F&B industry
The fear of contracting Covid-19 kept the people in their houses for a long time even after the lockdown was lifted. But as things begin to return to normal, people are still processing with caution. The paranoia created by the Covid-19 pandemic would influence people's decision to eat outside our to buy eatables from offline and online vendors. F&B businesses that are looking to ride the wave and keep themselves afloat need to adopt a strict sanitization regimen and they also need to be transparent about it to their customers. People would be keen to know the extent to which the premises and products have been sanitized by the vendors.
Naturally, the cost of sanitization would add to the total expense, but there are two ways to look at this situation. The business owners can either take it as an extra cost or they can consider it an investment. A restaurant or food outlet that is spending heavily on sanitization and is being open and transparent about it too would attract more customers, as safety is the priority for the majority of the population.
The fact that people have become health conscious has created one more opportunity for both the FMCG and F&B companies. Besides products related to hygiene and sanitization, there has also been an increase in the demand for healthy foods like 'sattvic' food, vegetarian food, and probiotics.
Sanitizing regularly has become a part of our daily schedule and it appears as if this trend is here to stay. Given the fear surrounding the dreaded infection, people will continue to focus on their hygiene long after the pandemic subsides. Thus, the paradigm shift that sanitization has brought into the FMCG and F&B industries would shape the future of these industries, not just in India - but all over the world.