The Coronavirus outbreak in Israel in the beginning of 2020 has changed the face and the future of many industries. Extreme measures were and continue to be enforced by the government to prevent the spreading of the virus; lockdown periods shut down schools, universities, stores, workplaces and more. Furthermore, social distancing, working from home with children, and limited time outside, all have major impacts on consumer expenditure. Overall, the pandemic has impacted market values, distribution, prices, marketing and more.
When taking a closer look at each industry, it is apparent that certain markets such as Travel, Entertainment, and Foodservice, have suffered the strongest decline as travel has been significantly limited over the past year, hotels and restaurants closed for long periods of time, and incoming tourism almost completely put-on hold. Some companies in these fields may take years to recover losses and many have shut down because of the outbreak.
The Packaged Food industry on the other hand, has seen high growth in these trying times as the Coronavirus has changed eating habits. With the rapid outbreak and declaration of policies, consumers began hoarding certain items in case of lockdowns in early 2020. Since then, though stockpiling has moderated, the average basket size has increased as consumers spend more time at home. In addition, restaurants were often closed, save for delivery services, and families home all day, resulting in more at-home consumption, both of snacks and of cooking ingredients.
E-commerce has risen considerably over the past year, due to home seclusion. This will likely have long term effects on channel distribution in the market as consumers who did not previously use online measures, have realized its convenience, and will continue to order online even after the market returns to normal. Companies who have online availability have seen higher growth recently, as there is strong potential and opportunity in this field.
Long term effects on the market are obviously still unknown, but with a vaccine in hand, there is hope for market restoration in upcoming years.