Impact of COVID-19 on the Global Alternative Sweeteners Market
The global alternative sweeteners market is expected to witness a negative impact on its growth due to the worldwide spread of the novel coronavirus. The pandemic is still aggregating, and with the prolonged spread of the virus, the impact is also expected to intensify. Partial/complete closure of international borders, trade restrictions, nationwide lockdown, and permitted functioning of production facilities at reduced capacity and workforce have led to the declining growth trend of alternative sweeteners market. There has been a widening demand-supply gap in the alternative sweeteners market due to the disruption of the supply chain and value chain. As per the data cited by the Institute of Supply Management (ISM), more than 75% of the companies worldwide are witnessing disruption in their supply chain. For instance, The Coca-Cola Company witnessed a disruption in the supply of its non-nutritive sweeteners such as sucralose, as its suppliers in China experienced delays in the production and supply of such ingredients. This is expected to have an impact on the production of its diet and no-sugar drinks offered under the brands Coca-Cola, Fanta, Sprite, Minute Maid, and Aquarius. Moreover, the functioning of food and beverage processing plants at half capacity and closure of manufacturing facilities in various countries has led to the lowered demand for alternative sweeteners across the globe. In China, Mondelez International, a prominent buyer of alternative sweeteners, closed its two manufacturing plants as directed by the Beijing government in January 2020. Similarly, food production in Italy is expected to register sluggish growth due to the Closure of northern Italy, which accounts for nearly 52% of Italy’s food production. Vendors in the market are expecting no immediate impact on their growth. However, revenues are being negatively impacted, at least during the first quarter of 2020.
However, to overcome the ongoing recession, governments of various countries have directed the manufacturing industries to resume production with minimum workforce and adoption of various hygiene standards. It is a challenge for the developing countries to adopt the GFSI benchmarked food safety and quality programs, such as Safe Quality Food (SQF), Brand Reputation Compliance (BRC), and Primus GFS, along with existing Good Manufacturing Practices (GMP).
According to the COVID-19 risk analysis conducted by MRFR, it has included several COVID-19 analysis pointers in its in-depth global alternative sweeteners market report. The COVID-19 impact analysis platform provided by MRFR includes the impact of the pandemic on businesses, several industries, logistics, and financial/economic impacts, among other such parameters.
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