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Posted by babo on August 20, 2024 at 8:18am 0 Comments 0 Likes
Posted by smithmorgan on August 20, 2024 at 8:17am 0 Comments 0 Likes
COVID-19 Impact on Global Aerosol Propellantin Chemicals and Materials Industry
Aerosol stands for aero-solution, a term used to describe a colloidal solution comprising solid or liquid particles dispersed within gas. Aerosol is generally classified into two categories, namely natural and anthropogenic. While natural aerosols generally comprise fog, mist, among several others originated in nature, anthropogenic aerosols are generated due to human activities or interferences. Some prominent examples of anthropogenic aerosols include smoke or smog, which are primarily generated due to combustion. Several aerosol sprays are currently available in the market for varied uses such as insecticides and room fresheners. An aerosol propellant is a chemical substance with a vapor pressure greater than that of atmospheric pressure, which undergoes various chemical reactions to expel materials stored in the form of gas within a container while controlling the pressure inside the vessel. Although initially chlorofluorocarbons (CFCs) were used as propellants, these were discontinued from being utilized for this purpose due to the tendency of these chemical substances to attack the ozone layer, thereby depleting it.
The commonly used aerosol propellants in modernity are volatile hydrocarbons such as propane or isobutene. However, n-butane, methyl ethyl ether, and dimethyl ether are also employed for this purpose. Further, the choice of aerosol propellant also depends on the type of application of the stored aerosol. For instance, hydrofluoroalkanes are widely preferred as aerosol propellants when used in medicinal aerosols while nitrous oxide is the popular choice for food products. Currently, liquid Hydrofluoroolefin is gaining extensive popularity as an aerosol propellant due to its lower vapor pressure, non-flammability and minimal global warming potential.
Aerosol propellants are classified into liquid propellants and compressed gases depending on the state at which these exist within the container. Liquid propellants are propellant gasses that exist mostly in liquidized form and a minimal amount of vapor within the container. Once the stored aerosol is released via the valve, some of the liquid propellants would get converted into gas to push the aerosol out and ensure a constant pressure within the container. The fundamental difference between the liquid propellants and compressed gas propellant is the fact that the compressed gas propellants exist as gas within the vessel. Once the aerosol is about to be released, the propellant pushes the aerosol out and expands its space within the container. However, this lowers the pressure within the container.
Aerosol propellants are widely exploited in several industries, including food, medicine, personal care, among several others, and are considered vital in the modern era. Some of the virtual instances where aerosol propellants are involved include topical medicinal preparations applied as sprays utilized in attaining relief from bruises and aches, among others.
IMPACT OF COVID-19 ON GLOBAL AEROSOL PROPELLANT IN CHEMICALS AND MATERIALS INDUSTRY
The pandemic COVID-19 has created a horrendous situation all over the world. The lockdown imposed to curtail the number of affected cases made the situation even more challenging for all economic sectors, especially in terms of growth. Although markets are recovering, the pace is slow.
The global aerosol propellant market is one of such markets which was adversely affected by the COVID-19 pandemic. This is because the raw materials used to prepare propellants are generally volatile hydrocarbons, mostly obtained from crude oil. The inability of workers to work in oil rigs under pandemic conditions and the lockdown of several oil rigs during the pandemic have adversely affected the price of crude oil and caused a price fluctuation in the market. This disturbance in price had an adverse effect on the global aerosol propellant market, resulting in a rapid rise in the final product price: aerosol propellants.
Further, a disruption in the supply chain of both raw materials and final product due to the close down of international borders and trades inflicted a serious blow to the market, disturbing the availability and distribution price.
AFTERMATH OF COVID-19 AND GOVERNMENT INITIATIVE TO BOOST THE MARKET
Globally, the impact of the COVID-19 pandemic has been implemented in the form of lockdown to limit the spread of the virus that has affected the global aerosol propellant market and had a significant impact on every related manufacturer company around the world.
The government across the globe is also taking proactive measures to ensure a better production atmosphere without compromising the safety of the employees.
For instance,
• As an industrial policy strategy, the European Commission merged to reinforce Europe’s global competitiveness and industrial sovereignty with the twin transition to a green and digital economy
Additionally, the governments have taken steps to sanitize all the places and have implemented policies regarding opening its border for trade and flow of products. All these implemented measures are expected to bring the production and sales sector back to its lost track.
STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE
Manufacturers in the global aerosol propellant market experienced several adversities due to obstructions in the production facilities that manufacture aerosol propellants. Manufacturers have taken many strategic decisions such as collaboration and partnerships to develop efficient technologies and increase the production rate to meet the market demand once it returns to normal. Utilizing e-commerce and establishing local supply chains are also some of the new strategies used by various manufacturers to counter the effects of COVID-19. Moreover, several industries have enhanced information transparency and are working together to help each other overcome the financial constraints experienced and increase cash flow into the business.
PRICE IMPACT
The price of aerosol propellants is expected to fluctuate due to an expected disturbance in the price of crude oil. The pandemic outbreak of coronavirus disease (COVID-19) has prompted manufacturers to find new contract manufacturers and suppliers to shift production operations. Also, manufacturers are looking forward to a new contract (or new manufacturing facility) to supply raw materials. In the manufacturing of the product, third parties are also involved in the supply of raw materials, components, and commercialization of products, increasing the cost of production and reducing the profit margins.
IMPACT ON DEMAND
COVID-19 has induced a multi-layered crisis comprising domestic price fluctuations, the overall decline of external demand, and the collapse of prices that impact supply and demand for goods. The impact of this could be contemplated across the globe irrespective of the market. The novel virus-based COVID-19 pandemic has affected every aspect and sector as COVID-19 is an emerging, rapidly evolving situation worldwide. Even though aerosols are essential in the health care and self-care markets, due to the scenario of COVID-19, the inability of manufacturers to address global demand for aerosols had a direct impact on the overall demand for aerosol propellants in the market.
However, in the coming years, the need for aerosol propellants is expected to rise rapidly due to the increasing demand for healthcare and self-care products that utilize aerosols. The increasing population, globalization, and urbanization are also expected to supplement this demand further. As a result, the global aerosol propellant market demand will experience a tremendous rise in terms of both sales and revenue.
IMPACT ON SUPPLY CHAIN
A severe impact can be seen in the supply chain due to the COVID-19 lockdown. Manufacturers face difficulties in clearing their old stocks and find it hard to acquire and manage the chemicals and other raw materials due to the lockdown and restrictions.
The COVID-19 outbreak has disrupted the supply chains for the aerosol propellant market. The sudden outbreak of COVID-19 and its subsequent impact on restrictions on trade and movement of goods has resulted in a shutdown of vast portions of the global economy. This has, in turn, disrupted supply chains due to limited materials and workforce and has slowed down the manufacturing process of the aerosol propellant market.
CONCLUSION
Aerosol propellants are necessary chemicals, utilized in several healthcare and self-care products. Nonetheless, the global impact of COVID-19 has resulted in fewer workforces in the manufacturing units, which has impacted the growth of the global aerosol propellant market. Further, due to the lockdown and availability of fewer workforces, several manufacturers in the global aerosol propellant market cannot fulfill the orders, which resulted in the delay in the supply or cancellation of the orders. Further, the supply chains were affected, and prices of raw materials such as crude oil, which is used to manufacture volatile hydrocarbon such as propane, increased the market's severity. However, the market is expected to grow in the forecast period due to various parameters such as a bloom in e-commerce, removal of COVID-19 restriction on import and export of raw materials, and finished products. Nonetheless, governments worldwide are working alongside the manufacturers to implement policies, to ensure total recovery of the global aerosol propellant market.
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