Impact of COVID-19 on the Global Botanical Extracts Market-
The worldwide spread of the novel coronavirus has resulted in the pandemic affecting every country differently. The pandemic is still aggregating, and with the prolonged spread of the virus, the impact is also expected to intensify. Trade restrictions, partial/complete closure of international borders, permitted functioning of production facilities at reduced capacity & workforce, and nationwide lockdown are resulting in the declining growth trend of botanical extracts market. Owing to the disruptions in supply chains and value chains, the supply-demand gap of botanical extracts has been widening. The Institute of Supply Management (ISM) stated that, globally, more than 75% of the companies have witnessed disruption in their supply chains.
Additionally, food and beverage and cosmetic production plants have been permitted to operate at half capacity, while several manufacturing facilities in other application industries have been closed in various countries. This has led to reduced global demand for botanical extracts in these application industries. For instance, 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.
Trade restrictions have impacted the import-export trade of various botanical herbs in the form of both fresh and processed. Due to such a decline in export-import trade, the supply chain has been disrupted and resulted in the unavailability of adequate raw material required to produce botanical extracts. Hence, vendors active in the botanical extracts market are witnessing challenges in their growth from both supply and demand side. However, shifting consumer preference towards natural products, even during the pandemic, is emerging as an opportunistic factor for the global botanical extracts market.
To overcome the ongoing recession, governments of various nations 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).
MRFR has included several COVID-19 analysis pointers in its in-depth global botanical extracts market report. The COVID-19 impact analysis platform provided by MRFR includes the impact of COVID-19 on businesses, several industries, logistics, and financial/economic impacts, amongst other such parameters.
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