The coronavirus pandemic has left a devastating impact on global food supplies, as countries around the world have put a halt on all economic and social activities to limit the spread of the virus. This resulted in the closure of borders, shipping activities, farm labor, food processing, transport, and logistics, ultimately leading to a massive shift in food demand.
On a local level, the pandemic initially resulted in panic buying from consumers. Fearing a looming food and essential supplies shortage, consumers worldwide flooded grocery shops to stock up.
The national and global impact was mixed but still profound. Here were some of the few consequences:
During the pandemic, outside food consumption drastically declined. Food demand shifted from hotels, restaurants, catering, and cafés to homes.
Image: Percentage change in daily restaurant reservations compared to the previous year.
This inevitably led to a shift in demand for grocery items. Both packaged and fresh food saw an increase in demand.
Image: Retail food demand index for the US. Same period last year = 100
Despite what many believe, the main threat to food security during the pandemic isn't food supply but access to food. Food consumed outside of homes constitutes a large portion of the market. Thus, a market may carry flour in bulk but may not have it in the 1kg packs needed for people at home. Additionally, the socio-economic impact of the pandemic has seen job losses and income declines as well. The UN estimates that an additional 130 million people will face famine by the end of 2020.
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World Bank Warns about Prospects for the Global Economy in 2022 but Trade Is Set to Grow
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