Impact of COVID-19 on the Global Moisturizing Cream Market
The advent of the global pandemic, COVID-19, created a global crisis across the world. The rising number of COVID-19 cases has impacted the global economy in various ways and has influenced the consumer’s spending habits and purchase decisions.
COVID-19 has created a panic situation among consumers with temporary closures of retail stores in an attempt to limit the impact of the virus. This has led to panic purchasing among the consumers and the stockpiling of essential items such as food, household, and personal care items. Stockpiling activity among the consumers has also resulted in creating immense pressure across supermarkets & hypermarkets and convenience stores as they are running out of stock, and the grocery shelves for popular items sit empty.
Moisturizing cream is an essential personal care product, which helps in retaining the moisture of the skin and prevents skin dehydration. The World Health Organization (WHO) and the Center for Disease Control and Prevention (CDC) have recommended frequent handwashing to protect from the flu and COVID-19. Preventative categories such as soap, hand sanitizers, and wet wipes are gaining demand from the WHO hand hygiene guidelines. As a ripple effect, skincare products such as hand creams and moisturizers are also expected to witness a greater demand due to frequent hand washing. Therefore, product manufacturers can develop products that fulfill various consumer needs as a solution to the situation.
There are government orders of temporary closures of beauty shops and salons to slow the spread of the virus. Thus, a sizeable chunk of the global population is paying closer attention to personal hygiene with increased sales of skincare products. Additionally, in response to the coronavirus pandemic, consumers have been put under lockdown with several countries imposing stay-at-home orders. This is rapidly accelerating the transition to e-commerce. According to MRFR analysis, online distribution channels are projected to grow substantially and have the largest contribution in sales of moisturizing cream in this pandemic situation. Among the store-based distribution channel, the sales for moisturizing cream is likely to be increased through pharmacies during the pandemic.
However, the COVID-19 pandemic has created a notable demand and supply gap in the moisturizing cream market. Although the demand for moisturizing cream is expected to increase, issues such as supply chain disruptions, logistics, limited availability of raw materials, and unavailability of labor are anticipated to restrain the growth of the global market to a certain extent. The limited availability of raw materials and low production capacities of the manufacturers is anticipated to create a demand and supply gap, increasing the retail prices of the products in the next couple of months.