Impact of COVID-19 Outbreak on Online Grocery Market - Forecast till 2022

Pune, India, April 2020, MRFR Press Release/- Market Research Future has published a COVID-19 Impact Research Report on the Global COVID-19 Outbreak Impact on Online Grocery Market.

Market Highlights

The COVID-19 pandemic has impacted the online grocery market. According to United Nations Food & Agricultural Organization, protective measures such as tariffs and trade barriers could lead to food shortage and increase in price. Also, shortage of fresh fruits & vegetables could be seen in countries that are dependent on imported products due to the restrictions on worker movement. The shortage of products and supply chain disruptions could also impact the online grocery markett.    

Bakery & confectionary ingredients manufacturer Puratos has joined forces with Bakeronline, launched a free service to bakers set up online web shop, with an aim to help them hold consumers due to the social distancing. This will allow the consumers to place orders and pay through online channels before picking up the products from the bakery, as access to the stores have been restricted to avoid the social gathering to fight the spread of the virus. Also, the consumers are inclined to order and pay online, and spend less time in stores due to social distancing recommended by the respective governments.

However, some countries are restricting the exports due to the coronavirus outbreak which can impact the online grocery market. For instance, Kazakhstan, biggest exporter of wheat flour, has banned export of wheat flour along with carrots, sugar and potatoes till April 15. This could lead to food shortage in some countries. Also, Russia banned export of all grains from March 23 to April 3 in order to stabilize the local market. The export restrictions from various countries are affecting the supply chain, local businesses, and online grocery market equally, as everyone is struggling to fulfill the increasing consumer demand.

There has been unpredictable demand for the online grocery in recent weeks, and the online grocery distributers are reacting as fast as they can to this demand. Tyson Foods, Kraft Heinz, Campbell Soup, and Mondelez International, have seen increase in sales growth of packaged food & meat products in Americas through online channels, as they have stable shelf life. Milk, meat, snacks foods are among the most in demand products.

Moreover, according to the FoodDrinkEurope, border controls in Europe region has disrupted the food supply, despite the guidelines provided by the European Commission. Travel restrictions are also impacting the online grocery market equally, as it has led to low number of employees working. to distribute the grocery.