The impact of COVID-19 on the food & beverage, supplement, and CPG industries cannot be understated, with changes in consumer consumption as well as disrupted supply chains. At-home consumption has gone up while out-of-home consumption has dropped to nearly a standstill. With mixed reports on how the industry is faring, we decided to reach out to our customer base – food and supplement manufacturers, brand owners, packaging companies, brokers and distributors, and retailers - to gain a clearer picture.
This survey was conducted with the objective of understanding U.S. food & beverage, supplement, and CPG industry impact with respect to Coronavirus Disease 2019 (COVID-19).
For this study, TraceGains account executives and customer success representatives contacted companies between March 16, 2020, and April 20, 2020, recognizing March 11, 2020, as the pivotal date after which major lifestyle changes occurred. This is the same date the World Health Organization declared the coronavirus outbreak a pandemic.
The Impact of COVID-19
At least one company reported both good and bad news, while the massive surge in orders is exciting, higher demand has placed tremendous strain on plant operations, and the additional ingredients required to meet increased demand can be difficult to source.
Dietary supplement manufacturers have seen soaring demand over the last four to six weeks. It's not surprising given a recent report by Tastewise, which found that "consumers have been increasingly looking for food and beverage options that offer functional benefits during the past year, and interest has risen even more during the pandemic." Also, retail companies are thriving, one TraceGains retailer has seen 40 percent business growth over the last 30 days.
The businesses experiencing a negative impact from COVID-19 are primarily in food service to restaurants, schools, and other companies deemed non-essential during the crisis. These companies have had to make tough decisions like shutting down plants, laying off workers, and reducing employee pay and hours.
TraceGains Solutions to Navigate COVID-19
- Faster Sourcing: Supplier Management now includes Market Hub at no charge for unlimited users. Market Hub usage has accelerated during the current threat, with customers relying on it for alternative sourcing. With 30K supplier locations, 250K items, and more than 1.5M supplier-provided documents to expedite qualification, Market Hub is not just for ingredients, you can source cleaning and sanitizing products, packaging, labels, and more.
- Virtual Audits: With the FDA's announcement to conduct remote inspections, virtual/desk audits are essential. Supplier Management's automatic risk assessment can focus resources on your highest risks. The automated collection of documents and data through TraceGains Network lays the foundation for a virtual audit, and our Audit Management product can assist in many additional ways.
- Risk Management: Shortages and disruptions open a vacuum for bad actors. Our Smart Alerts solution not only monitors global problems like fraud, adulteration, and import refusals; you can connect alerts directly to your items and ingredients.
Want to learn more? Please check out our infographic outlining solutions to help navigate the COVID-19 threat HERE.