COVID-19 Impact on Consumer Goods
The impact of the Covid-19 pandemic in the US is noticeable in consumer demand trends and disruptions in supply chains. There is an increase in consumer demand for typical stock-up supplies, lower-priced brands, art and craft goods, products that prevent the spread of COVID-19, and health and wellness products. The supply chains for food are relatively robust, while the supply chains for pharmaceutical drugs and medical gear are less resilient as it is dependent on exports from China and India.
COVID-19: Consumer demand and behavior in the US:
- There has been an increase in stock-up supplies in the US. These typical stock-up supplies include baking and canned goods, ground meat (to freeze), soups, rice, and pasta. The demand for some of these categories have increased with 30% to 250%.
- It is predicted that the demand for stock-up supplies will continue to be higher than normal as more people are eating breakfast, lunch, and dinner at home.
- Due to the devastating effects of COVID-19 on the economy, consumers will increasingly look for lower-priced brands and value propositions.
- More consumers are inclined to purchase consumer goods online. It is predicted that this trend will continue after the pandemic has subsided.
- The demand for art and craft goods have also increased. The demand for some art and craft brands has roughly increased by 30%.
- Consumers are purchasing products that prevent the spread of COVID-19. These products include detergents, cleaning agents, and hand sanitizers.
- Consumers are purchasing more health and wellness products.
COVID-19 and its effects on supply chains:
- The supply chain for typical stock-up supplies, such as canned goods and pasta, are gradually catching up to consumer demands in the US. It will, however, take a week or two before inventory levels return to normal.
- The US food supply chain is exceptionally robust as most of the food supplies are obtained within the United States.
- COVID-19 is threatening the global drug supply chain and experts predict the increasing possibility of a shortage of pharmaceutical drugs in the US. Pharmaceutical companies in the US rely on India and China for drug supplies. COVID-19 caused numerous drug manufacturers to shut down in China and India is presently undergoing lockdown.
- A disruption in the supply of medical devices and protective gear, such as ventilators and masks, is expected.
- US businesses are experiencing longer lead times. The lead time for most US businesses are doubling due to the effects of COVID-19 virus on global supply chains.
- In the US there is presently a shortage in the supply of toilet paper, thermometers, board games, Vitamin C, onions, and garlic.