Urban life is hectic and hectic, and various nutritional supplements and health foods have become necessities. Today, with the pandemic at its peak, global demand for epidemic prevention products is intense, and the related industry is experiencing explosive growth.
Cui Yongchang, founder and managing director of Zhongkebao, stated that sales of its BioEm air disinfectant and purifier have surged over the past three months, with retail sales alone increasing 30-fold. He noted that the pandemic has heightened public awareness of the need for disinfectants. In addition to the sharp increase in consumer demand, the B2B (business-to-business) market holds even greater potential.
Global competition for raw materials leads to soaring costs
Earlier, the AsiaWorld-Expo introduced an "intelligent disinfection tunnel," integrating air disinfection and purification, intelligent photocatalytic sterilization, and negative pressure purification. Cui Yongchang noted that government agencies and real estate developers are studying the importance of implementing central air conditioning systems for epidemic prevention in buildings.
"This (disinfectant) industry used to be a blue ocean market with no one competing; now it's become a red ocean market with everyone competing!" Cui Yongchang said that due to the global shortage of raw materials, doubling of costs was a common occurrence. For example, the cost of each spray bottle soared from NT$0.55 to NT$4.5.
Faced with a shortage of raw materials, businesses and consumers are forced to "hard-earn" price hikes. Masks, which cost about NT$1 per piece before the outbreak, have recently surged four to five times. Household disinfectants and bleach are also being sold at high prices, but despite the high prices, they still sell for a good price.
Seeing Hong Kong residents desperate for masks and facing high prices, nutritional supplement manufacturer Vita Green decided to "do something for Hong Kong" by dedicating its factory space to producing them. With cleanroom production space, air filtration materials, and expert partners, Vita Green is now ready. All it needs is a helping hand.
"The budget for buying fabrics and machines is very different from what we originally expected. Everyone is scrambling to buy them, and the prices have increased several times compared to before the epidemic." Vita Green founder and chairman Chen Xiling revealed that one raw material supplier suddenly increased the price by several times. In anger, she decided to cancel the order and look for another supplier.
The 1970s and 1980s were a period of booming manufacturing in Hong Kong. However, as production processes shifted northward, traditional manufacturing declined. The current pandemic has spurred many companies to spontaneously produce face masks. However, Chan Hei-ling frankly stated that Hong Kong's high labor costs, coupled with expensive land and electricity prices, make manufacturing uncompetitive in the city. Joining the mask production effort is solely to meet local demand.
In addition, Wang Jiajun, chairman of Man Kwun Group (03390), the third largest distributor of Chinese patent medicines in Hong Kong, said that in addition to increasing the purchase and distribution of more than 50 types of anti-epidemic supplies, it also specially produced its own disinfectant liquor through third-party factories.
Demand for healthy food continues to grow
Although many companies have joined the ranks of mask production, Wang Jiajun frankly stated that he has no intention of following suit. He pointed out that from the SARS in 2003, the swine flu in 2009, to the Middle East Respiratory Syndrome in 2012, each panic led to a surge in demand for masks, but demand would decline after the epidemic subsided.
While market awareness of health products is undoubtedly growing, no single product can be universally successful. Wang Jiajun frankly stated that facing declining global consumer spending, his biggest concern is consumers turning to alternatives. "If they don't buy health products containing Vitamin C, they can get it by eating oranges," he said. Therefore, the company is forced to scout out unique products globally.
The COVID-19 epidemic appears to be easing in Hong Kong, with zero confirmed cases for several consecutive days. Once the epidemic is officially over, it is foreseeable that as people return to normal social life, their demand for disinfectants and health foods will only increase.
Ta Kung Pao reporter Kit Lee