The coronavirus pandemic (COVID-19) has had a devastating impact on the markets across the globe. It is one of the most tragic health and humanitarian crises that have led to forced recession and financial collapse due to immense volatility and uncertainties in the markets. Governments of both developed and developing nations have implemented stringent social distancing, self-isolation and travel restrictions on the masses to contain the community spread of the disease. As the crises unfold, the severity of the situation surfaces. The pandemic has led to a substantial loss of human life worldwide and poses acute challenges to public health, business organizations, food systems and administrative operations.
The social and economic disruption caused is posing the risks of existential threats to business enterprises. They are now facing various other challenges, such as labor shortages, transport disruptions, supply shortages and market volatilities. Businesses are resorting to mass layoffs and have become financially fragile. In such turbulent times, IMARC Group endeavors to assess how the market has changed and evolved with automation, digitization and diversified supply base and provide insightful and customized market research and consulting services to our clients.
Impact of COVID-19 on different industries:
Food and Beverage
The onset of the COVID-19 pandemic has tremendously impacted the previously thriving foodservice industry. Hotels, cafes, quick services restaurants (QSRs) and small eateries have mandatorily shut down to avoid public gatherings and minimize the transmission of the virus. However, online and app-based food chains are witnessing a positive impact as consumers are increasingly preferring at-home food deliveries. The demand for packaged, ready-to-eat (RTE) and shelf-stable foods has also increased as the masses are indulging in panic buying and stocking up pantries.
The automotive industry, including connected, autonomous, electric and shared driving automobiles, has been witnessing significant pressure to survive due to the outbreak of the COVID-19 pandemic. With the disruptions in the export of Chinese automotive parts and large-scale manufacturing of automobiles and components, there have been massive factory closures, plummeting car sales and extensive staff layoffs. However, organizations are radically directing towards digital channels, recurring revenue streams, optimizing asset deployment, embracing zero-based budgeting (ZBB) and building resilient supply chain systems to improve their organizational structures and operations.
With the implementation of stringent policies restricting and banning international and domestic travel in various countries, the travel and aviation industries have experienced a considerable drop in the demand for passenger air transport. There is a significant gap between the number of airline tickets booked and the total capacities of the aircraft, resulting in substantial losses to the airlines.
Oil and Gas
The oil and gas industry across the globe is experiencing an unprecedented drop in demand due to the onset of the COVID-19 pandemic. Oil and gas prices are constantly declining due to diminishing product demand from the chemical industry. Moreover, industrial slow-downs and travel restrictions have also impacted the industry significantly. Market players are moving toward technology-led, rapid supply response-based models to overcome the challenges posed by the pandemic.