The global Impact of COVID-19 on confectionery market size is projected to reach USD 188.52 billion in 2020, down from USD 202.63 billion forecasted before the coronavirus outbreak, as per the special Fortune Business Insights™ report on this market, titled “Impact of COVID-19 on the Confectionery Market Size, Share, Industry Analysis and Regional Forecast 2019-2026”. As the number of coronavirus cases around the world continues to escalate, currently numbering at 2.8 million with over 200,000 deaths, nations have imposed strict lockdowns and mass quarantines to quell the spread of the infection.
For instance, Italy, one of the worst-hit countries, implemented a nationwide lockdown, quarantining 60 million residents, and shutting down all sorts of economic activities. Similar scenes have been seen in countries such as France, UK, China, and India. The abrupt halt of economic activities has severely impacted the confectionery market growth as people have limited their purchases to essential items exclusively while holding off their consumption of leisure products such as chocolates and bakery items.
Restrictions on Supermarkets to Impede Market Growth
While local grocery stores in most countries have been mandated to shut down to avoid the congregation of people, supermarkets have been kept open to ensure daily access to essential supplies to people. However, these spaces are being made to follow strict social distancing rules as well as rules to prevent panic- and bulk-buying. For example, customers in certain US states are allowed to shop in a supermarket for only 10 and are prohibited to buy more than 10 items, thereby avoiding unnecessary hoarding. Similarly, Tesco is limiting purchases to only three per customer to ensure that there are enough supplies for everyone. Since the focus of governments is to facilitate supply and distribution of essential food and other items only, such as toilet paper, milk, and vegetables, the demand for confectionery products has plummeted and the global market has been severely affected as a result.
Level of Exposure to Determine Regional Impact of the Pandemic
The COVID-19 outbreak has affected all regions under consideration in this report. The greatest impact, however, is anticipated to be borne by Europe, where the market size stood at USD 76.12 billion in 2019 and the region dominated the confectionery market share at 39%. This is expected because the number of COVID-19 cases is skyrocketing in Europe, with the largest brunt being taken by the strongest economies in the region, namely, the UK, Italy, France, Germany, Spain, and the Netherlands. These countries are also home to some of the largest premium chocolate makers in the world and the region is, therefore, is bound to be gravely affected by the coronavirus pandemic as demand for such items steadily falls. Besides Europe, the market in North America and Asia-Pacific, two of the biggest confectionery products consuming regions in the world, is also likely to be impacted on account of the unceasing rise of cases in these regions.
Competitors to Focus on Mitigating Their Losses
The competition in the confectionery market is highly monopolistic, featuring a strong presence of a limited number of giant corporations. However, despite their deep-rooted presence in the market, these conglomerates are adopting measures to brace for the challenges posed by the COVID-19 pandemic to their revenue streams.
Industry Developments:
- March 2020: Kellogg Company’s value spiked amid the coronavirus outbreak as consumers began stocking the company’s renowned cereal and snack items. Owing to its diversified portfolio, the company expects to successfully tackle the impact of the pandemic on its business and is taking strong measures to safeguard its manufacturing operations in 180 nations.
- February 2020: Mars, Incorporated announced its plans to ensure pet food supplies and veterinary services for millions of tamed animals in coronavirus-hit China. The aim of the company to retain its 30-year-strong network in the fledgling Chinese pet care market and continue its operations during the COVID-19 outbreak.
Browse Summary of This Research Report:
https://www.fortunebusinessinsights.com/impact-of-covid-19-on-confectionery-market-102690
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