Covid-19 briefing

Download GlobalData’s Covid-19 Executive Briefing report

- ECONOMIC IMPACT -

Latest update: 20 January

Jobless rate in the Euro zone declined to 8.3% in November 2020 from 8.4% in the previous month, according to Eurostat.

According to the OECD, the unemployment rate in OECD nations declined marginally to 6.9% in November 2020 from 7.1% in October 2020.

The World Bank forecasts global economic growth at 4% in 2021 as vaccine rollout becomes widespread.

Fitch Ratings revised its economic growth forecast of the UK for 2021 to 5% from its earlier estimate of 4.1%.

Impact of Covid-19 on employment outlook

- SECTOR IMPACT: FOOD -

Latest update: 8 January

employment impact

450

Butterball, the largest Turkey producer in the US, plans to halt production at a plant in Missouri, which will result in a loss of 450 jobs.

15,000

Deliveroo is set to hire 15,000 new riders in the last quarter of the year as new partnerships with foodservice operators “soar”.

Revenue predictions

GlobalData’s latest forecasts show a decline of 3.8% in consumer products for 2020 compared to baseline predictions, equivalent to $334.3bn in lost revenue.

The restaurant channel will see the largest decline in value terms with a predicted $587.9bn value loss in 2020 vs the baseline forecast, equivalent to 24.7%. This gap between the baseline and slowdown forecast will narrow slightly to -7.8% in 2023.

Key Food developments

D2C business models continue to be embraced, particularly in the food sector, and HelloFresh recently acquired US ready-to-eat meal company Factor75 in a deal worth $277m.

Suppliers with international operations continue to acknowledge the necessity of moving away from single-source dependencies, as well as the incorporation of digital tools to improve resilience throughout and beyond the pandemic.

Foodservice operators continue to form partnerships with foodservice delivery firms or launch independent delivery services. In the US, the restaurant ‘Ted’s Montana Grill’ introduced a nationwide meat delivery service to boost sales.

Foodservice operators continue to recognise the importance of takeaway & delivery services, value-for-money offerings, and revamping eat-in environments to fulfil social distancing measures and hygiene standards.

02/11/2021 11:59:45