Impact of COVID-19 on the Commercial Jar Blenders Market in Food and Beverage Industry
The COVID-19 pandemic has affected the industrial and commercial progress of most of the countries across the region. COVID-19 has negatively impacted the manufacturers, distributors, and suppliers of commercial jar blenders. The declining export shipment and decreasing demand for commercial jar blenders are significantly reducing the market growth. The COVID-19 pandemic has affected the commercial jar blender market in three ways: a direct impact on production and demand, supply chain disruption, and financial impact on firms. Moreover, disruption in the supply chain directly affects the production of jar blenders, which further decreases the growth rate in the market.
The outbreak of COVID-19 has affected the production and supply chain of commercial jar blenders. So, the manufacturers are working on their business strategy to stabilize the demand. This is because several manufacturers are unable to stabilize the commercial jar blenders market during the second and third waves of COVID-19 that hit many countries. Thus, the manufacturers ensure safety in the manufacturing process by following the prevailing situations' norms.
STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE
In 2020, the market shares of commercial jar blenders are drastically affected during the COVID-19 pandemic. The manufacturers of the commercial jar blenders were facing a significant challenge during COVID-19 due to lack of transportation and disruption in the supply chain. Also, it increased the demand in the market. Owing to less production and sale during COVID-19, the net sale revenue decreased substantially. To gain a competitive market share after COVID-19, the manufacturers have taken certain strategic decisions.
•Production of Premium Quality Products:
Several manufacturers are focusing on producing high-quality products with innovative features to improve the demand among the customers. For instance, in recent years, customers have adopted smart technologies and automated machines. Hence, the introduction of automatic jar blenders in the market will raise the demand among the end-users. Furthermore, it impels market growth.
•Announcing Discounts and Other Offers:
The customers are more attracted to the discounts and other offers that are available for the products. The commercial jar blender manufacturers are selling their products at a discounted price to increase the market demand. As people are sensitive to money, the price of discounted products quickly reaches the customers and promotes market growth. Similarly, the offers include extended warranty, free services, and others that influence the people to buy the product. Thus, the discounts and offers of the products are expected to fuel the demand among the population.
•Use of Alternative Sourcing:
The manufacturers are exploring to increase the quantity of sourced materials. For instance, during the COVID-19 pandemic, the manufacturers stopped production due to a lack of raw material and disruption in the supply chain. Hence, the manufacturers are opting for backup or alternative raw material suppliers which will help to continue the production even during epidemic or pandemic conditions. Therefore, continuous production is expected to aid the manufacturer in increasing the market share.
AFTERMATH OF COVID-19 AND GOVERNMENT INITIATIVE TO BOOST THE MARKET
The taste of food items is majorly influenced by blending the right amount of ingredients. The use of a manual way of blending may result in a lack of consistency. This may cause a non-uniform taste in a food item and appear unattractive in terms of texture. Thus, the end-user increasingly adopts commercial blenders to ensure a proper blending of food ingredients to provide a better taste and texture. Hence, it raises the demand for commercial jar blenders in the market. On the other hand, the demand for commercial jar blenders has decreased during the COVID-19 pandemic situation.
The COVID-19 is an infectious disease which widely spread among the world population in 2020. Therefore, the government has implemented various restrictions and lockdowns in major countries to reduce the spread of the virus. During this period, the transportation of goods came to a halt. Furthermore, it disrupted the supply chain. As a result of the discontinuous supply chain, the commercial jar blender manufacturers had ceased the production process due to a lack of resources and raw materials. Meanwhile, the raw material price continuously fluctuated due to supply chain disruption. In addition, the establishment of lockdown reduced the movement of people from one place to another. Also, it reduced the consumption of food products from restaurants, bars, hotels, café, and other foodservice sectors. Hence, the usage of commercial jar blenders decreased in the foodservice sector. The decrease in the demand for commercial jar blenders in the foodservice sector declined the demand and growth rate in the commercial jar blenders market. In addition, the government has taken certain initiatives to boost up the growth of commercial jars in the market. For instance, the regulation and policies that impact transportation, energy, labor are supervised by different sections of the government. In various countries, the government has unleashed the transportation restriction to the supply of required raw materials to the manufacturers. Similarly, the government allowed the manufacturers to deliver their products to the end-user. Hence, it may aid the manufacturers to boost up their growth in the market.
IMPACT ON SUPPLY CHAIN
During the pandemic situation, the supply chain was majorly disrupted due to a lack of resources and transportation. Also, the government implemented various restrictions and lockdowns to prevent the spread of the disease. In the same vein, the government restricted the movement of goods across the countries and the entire supply chain was distorted. Owing to the disrupted supply chain, the transportation of raw materials such as blades, glass, steel, polycarbonate, motors, and other materials was interrupted, and the jar blenders' production was halted. Similarly, the manufacturers are unable to transport the final product to the dealers or end-user due to the implementation of lockdown. Thus, the demand for commercial jar blenders was on the decline drastically. As a result, the COVID-19 pandemic has negatively affected the growth of commercial jar blenders in the market.
As the regulation for good supply was changed, the transportation cost has been increased. Thus, the manufacturers face a raw material shortage, creating a gap in the amount of material demanded and supplied by the raw material manufacturers.
The change in regulations of the supply chain process has created more challenges for the manufacturers and the suppliers, for instance, a rise in inventory cost and hold up the cost of the finished goods, which are still to be delivered. This situation has created an economic loss for the manufacturers and suppliers and the worker who cannot generate their livelihood. Manufacturers must assess many regulations, such as operational risk, extensive inventory handling, and the search for alternative procurement strategies. Some of the critical areas are required to be looked upon by the manufacturers to reduce the gap between the demand and supply of products.
IMPACT ON DEMAND
The COVID-19 pandemic has affected the commercial progress of most cities across the region. The pandemic of COVID-19 has both short-term and long-term impacts on demand. Due to the lockdown implemented by the government, people are prohibited to consume food at restaurants, café, hotels, and canteen. Hence, the foodservice industry was completely turned off last quarter of 2020. As a result, it decreased the usage of commercial jar blenders. Therefore, the decrease in demand among the end-user diminished the growth of commercial jar blenders in the market in 2020.
PRICE IMPACT ON DEMAND OF COMMERCIAL JAR BLENDERS
Customers across the globe are significantly shifting their focus towards commercial jar blenders due to many factors such as high blending efficiency, multiple function, and others. The product price has remained the same during the pandemic situation. The price of commercial jar blenders vary depending on the brand and model of the products. Owing to the various restrictions in society, the demand for commercial jar blenders decreased during the pandemic situation. To increase the sale, the manufacturers are selling commercial jar blenders at a discounted price. Thus, decreasing the product's price may raise the net sale and hence improve the growth in the market.
COVID-19 pandemic has taken a toll on the population and economy. A collaborative effort on governments, public health departments, and hospital fraternity to fight the coronavirus has led to economic slowdowns, lockdowns, and extreme public safety measures. Due to the lack of transportation, the supply chain is disrupted, and the market demand is decreasing. Some of the manufacturers of commercial jar blenders are facing raw material shortages due to the current pandemic situation. With the rising count of the foodservice sector, the demand for commercial jar blenders is increasing in the market. However, the disruption in the supply chain reduces the availability of a product in the market. The increased usage of commercial jar blenders has raised the demand for raw materials by creating a competitive market among raw material suppliers. Thus, COVID-19 has impacted the market of commercial jar blenders in both positive and negative ways for the manufacturers and the suppliers.