The COVID-19 Pandemic has created an unprecedented time of uncertainty and is pushing consumers to pile up their food stocks in anticipation of a shortage occasioned by strained operations in the manufacturing and distribution sectors.
While this has generally boosted retail sales especially for food and beverage brands, it is altering how PE firms will be investing in Consumer-Packaged Goods (CPG) moving forward.
Firms are seeing a situation whereby there will be a surge in demand for immunity-boosters during and after the Coronavirus age, coupled with a few other popular products including free-form, plant-based, and low sugar.
As per the COO of Cambridge Companies SPG, “It is safe to say that there is no getting back to normal after this public health crisis subsides.”
“This event will help bolster the health and wellness industry, and immunity support will continue to flourish, and spur new innovation across the sector.”
Already, companies dealing in immunity-based products such as Zhou’s Elder-Mune gummies have reportedly run out of stock. Vive Organic, an immunity shots firm has seen its sales soar to all-time highs and according to them, the trend is not expected to slow down any time soon.
“It’s possible that over the next three to ten years, concerns around the flu and boosting our immune systems will remain at a new high, and this will, in turn, drive purchase behavior and intent,” Vive Organic CEO Wyatt Taubman said in a statement.
Experts expect the sales of new CPG brands to be impacted by the pandemic in the long term. As consumers plan for quarantine, it is typical for them to purchase products they wouldn’t typically buy. That is gradually becoming a national demo program that companies are being paid for.
Brands are also betting on the new consumer habits to expose their products to the masses, have customers use them and have positive experiences, and opt to incorporate the items in their daily routines once normalcy eventually returns.
In an unforeseeable future, firms are expected to focus on CPG brands but perhaps more specifically on health and wellness daily use products.