NEWS COMMENTARY

Shrinking consumption across commodities is a stark reminder that it's time to innovate your business model

Published:
June 18, 2020
Coverage:
Emerging Ecosystems in Agrifood and Health
Activities:
Markets
by Sara Olson
Truly disruptive

Sugar consumption is in focus as the most recent commodity to exhibit rapidly falling demand associated with COVID-19 and global lockdowns, but it is by no means an outlier among consumer products and ingredients. Periodic fluctuations in demand are commonplace, but COVID-19 is having once-in-a-generation impacts on consumption that are accelerating the need for CPGs and commodity companies to learn how to do more with less – namely, how to grow their businesses from shrinking top-line sales. Don't wait for sales to miraculously bounce back (they will not), but rather start now to innovate your business model – offer services, diversify products, explore new routes to market – to get ahead of the (falling) demand curve.

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Further Reading

How is COVID-19 impacting consumer goods industries, and what can you do about it?

Analyst Insight | April 24, 2020

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COVID-19 highlights issues along the agrifood value chain, but there are also opportunities if you know where to look

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