Impact of COVID-19 on the Global Plant Protein Ingredients Market-
The global plant protein ingredients market is expected to witness a negative impact on its growth due to the worldwide spread of COVID-19. The advent of the global pandemic, COVID-19, has resulted in creating a global crisis across the world. Impacting over 195 countries, the pandemic has already created a global economic backdrop. The global market is expected to witness hurdles in its growth owing to the restrictions imposed on trade, operations of production facilities at reduced capacity & workforce, nationwide lockdown, and closure of international borders. Several countries have limited or completely restricted their export-import trade of agricultural commodities such as cereals and grains, resulting in a declining supply of raw materials to produce plant protein. Additionally, disruptions in the value chain and supply chain of plant protein ingredients are also contributing to the widening supply-demand gap across the globe. The functioning of food and beverage processing plants at half the capacity and closure of manufacturing facilities in various countries has led to the lowered demand for plant protein ingredients across the application segments. For instance, the closure of northern Italy, which accounts for nearly 52% of Italy’s food production is expected to render a sluggish growth to the food production sector of Italy. However, the manufacturers of plant protein ingredients are expecting no immediate impact on their growth, even though their revenues are being negatively impacted, at least during the first quarter of 2020.
Government bodies of various countries are taking measures to minimize the negative impact of the global recession caused due to the COVID-19 outbreak by providing financial aid to the vendors, especially for small and medium enterprises. For example, the European Institute of Innovation & Technology (EIT) raised funds to provide financial aid between €200k and €500k to Europe-based startups indulged in sustainable agriculture, circular food systems, alternative proteins, targeted nutrition, or other focus areas of EIT. Moreover, few market players, as a part of their CSR activity, are contributing to the efforts taken to curb the spread of COVID-19. For instance, France-based pea protein manufacturer, Roquette Frères, modified its production lines at a pilot plant to manufacture and donate alcoholic disinfectant for the healthcare sector. Roquette Frères manufactures 5,000 liters of hydro-alcoholic disinfectant per week for around 20 healthcare facilities in the north of France.
MRFR’s COVID-19 analysis reports also suggest the emergence of several challenges being faced by the manufacturers of plant protein ingredients in the developing countries. For instance, poor storage infrastructure, unavailability of labor, and logistics constraints are few challenges emerging in the developing countries.