Impacts on Different Industries

Impact on Accomodation and Food services Industry

Among all the "high-contact" industries, the accommodation and food services industry had the largest initial fall in turnover. Figure 1 shows that all sub-industries had a contraction of more than 50% in business turnover, although the speed of their recovery has varied. The largest fall in turnover was for the beverage-serving sub-industry (92%) and the hotels and similar accommodation sub-industry (86%). Following the easing of restrictions, there was a sharp rebound in their turnover. By Quarter 3 2021, turnover for the beverage-serving sub-industry was 5% above its pre-coronavirus pandemic levels, while the hotels and similar accommodation sub-industry had almost recovered. During the coronavirus pandemic, the hotels and similar accommodation sub-industry were particularly affected by falls in foreign tourists to the UK. For example, overseas residents made 398,000 visits to the UK in Quarter 2 (Apr to June) 2020; this was 96% fewer than Quarter 2 2019. This is also evident in Quarter 3 2020.

In contrast, there has been stronger performance for other sub-industries such as the holiday and other short-stay accommodation, camping grounds, recreational vehicle parks, and other accommodation groups. This indicates a shift in consumers' holiday and leisure preferences, reflected in the switch from international to domestic holidays (so called staycations), which led to the rise of self-catered domestic holiday and other short-stay accommodations.

Turnover for the restaurants and mobile food services sub-industry is now 16% above its pre-coronavirus pandemic levels, recovering from being 74% below in Quarter 2 2020. Businesses adapted to coronavirus restrictions so that they could continue to trade. Some of these business adaptions include restaurants making changes to dining areas to allow for social distancing and moving to take-away and home deliveries.

Impact on Nutrition Industry

COVID-19 offered the industry a rough start to the year, causing delays and disruptions across several food and nutrition supply chains. Trade shows were cancelled and many opted for the virtual route to help industry stay connected amid unprecedented times. Despite the hurdles however, supply chains were focalized as a priority so that the market can continue to flourish, especially within the nutritional ingredients space.

E-commerce and private label saw a sharp rise as industry braced itself for the second wave of the pandemic and beyond. The sports nutrition segment presented a mixed picture in terms of how it fared amid COVID-19, however it plans to come out of this crisis “stronger than ever.”

Furthermore, global hunger rates rose this year, despite the UN’s aim to achieve Sustainable Development Goal 2 (Zero Hunger) by 2030.

The Ceres2030: Sustainable Solutions to End Hunger project used data from the UN report to highlight that an additional US$10 billion is urgently needed to prevent millions more people becoming food insecure due to the pandemic.

Impact on Cosmetics Industry

The cosmetic industry is a multi-billion-dollar industry that has taken a financial hit in 2020 due to COVID-19. The drop in cosmetic usage leaves the industry in question for future consumer intention and behavior. By the summer of 2020, revenue had dropped by 7.4%, and employment dropped by 3.91%. With dwindling numbers in revenue and jobs, marketers must grasp the changes in consumer behavior and attitudes so that new strategies can be implemented. With updated strategy and priorities, marketers can pull the cosmetic industry back to pre-COVID-19 numbers. Methodology - Data were collected from 1,715 female Middle Tennessee State University students using a survey, conducted through Qualtrics. The survey was broken up into three sections to analyze changes in behavior and attitudes pre- and mid-COVID- 19, as well as future intentions.

The results from each question were broken down into individual tables to examine differences in means and responses. Results - The research questions developed were answered by examining the differences between behaviors and attitudes pre-, mid-, and post-COVID-19. Results indicate significant differences that consumers will go back to pre-COVID-19 usage post- COVID-19. Mid-COVID-19 results showed that participants reduced their usage of each cosmetic type (face, eye, lip, and skin) compared to their pre-COVID-19 levels. Eye, lip, and skin cosmetics will return to previous usage post-COVID-19.

The exception here is face cosmetics, which indicated that consumers wore more face cosmetics pre-COVID- 19 than they intend to post-COVID-19. The most important cosmetic category was skincare, which had the highest levels of usage pre-, mid-, and post-COVID-19. Price maintained a high priority in pre-, mid-, and post responses. Convenience was not as essential pre-COVID-19 but became extremely important mid-COVID-19 and is shown to continue a high level of importance for post intentions. Although these findings may be surprising, it is positive news to the cosmetic industry that consumers relatively intend to go back to old buying habits.

Impact on Global Aviation Industry

Although the COVID-19 pandemic hit airlines harder than any other aviation subsector, it wasn’t doing particularly well before then. From 2012 to 2019, despite a favorable environment of strong economic growth and low fuel prices, airlines were bleeding $17 billion in economic profit a year, on average. Of the 122 carriers we studied, 77 percent were value destroyers (Exhibit 3). But the average losses of airlines before the pandemic were only around one-tenth of their $168 billion in losses for 2020. Their revenues plummeted by 55 percent, setting the subsector back, in nominal terms, roughly 16 years—to 2004.

All regions contributed to the overall losses in 2020—including North America, which outperformed other parts of the world from 2012 to 2019, when its airlines registered a cumulative $44 billion in economic profit (Exhibit 4). Five of the world’s ten top-performing airlines during this period were based in the United States, because years of consolidation and restructuring had left the North American market with a few big leading players. Nonetheless, the pandemic did not spare them, and they lost $63 billion in 2020.

ESTIMATED VALUE CREATION/DESTRUCTION BY REGION (BILLIONS)