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Impact of COVID-19 on health products industry

updatetime:2020-04-29 14:08:50

Since the outbreak of the New Coronary Pneumonia epidemic in 2020, the impact on the production of the hygiene products industry has been enormous, mainly reflected in the impact on the enterprise's production capacity and production costs.
The impact of the epidemic on the company's production capacity
As for the sanitary products market, as of mid-April 2020, 90% of the private enterprises in the industry have consumed the raw materials in stock and have been forced to stop production. The reason is mainly due to the competition for raw materials in the production of various masks and hygiene products. The raw materials for masks, such as meltblown cloth, occupy the supply of raw materials for sanitary products, causing the prices of nonwoven fabrics for hygienic products to soar and become out of stock.
With the consumption of non-woven fabrics in mask production, this situation will continue for a certain period of time, and the hygiene products market will face the risk of product out of stock. It is expected that when a market shortage occurs, even if multinational companies and major brand manufacturers have product supply, and the production end can guarantee that the supplied products will not increase in price, there will still be certain price increases at the retail terminal, and some products may have quality Decline situation.
In terms of the impact of the epidemic on production costs, at present, the price of hot-air nonwovens is 160,000 yuan / ton, SMS nonwovens are 100,000 yuan / ton, and breathable membranes are 30,000 yuan / ton. For towel products, the material cost will increase by 35% to 50%. The material cost of baby diapers with a core structure of fluff pulp will increase by 85% to 100%; the material cost of baby diapers with a composite core structure will increase by 100% to 130%.
The impact of the epidemic on sales
Think about and predict that if the epidemic continues, will this situation continue? How should hygiene products meet market demand?
Leaving aside the quality of the products, personally predict that there will be several results in the hygiene products market: The supply and demand imbalance of raw materials will affect the production and sales.
①Some brand products are out of stock and only a few big brand products are available, but not enough to meet market demand.
②The production cost of private brand products is soaring, and the product price will double. Consumers have to pay for the high prices.
③ Under the situation of high prices, finished product distributors use market shortage hype, artificially raising prices to cause capital speculators to enter the market, and even cause market chaos.