PRINCIPLES OF ECONOMICS PROJECT :

CHANGE IN DEMAND OF ESSENTIALS DURING EMERGENCY PERIOD: WITH REFERANCE TO HAND

SANITIZERS.

Submitted By: Arsh Kaul

R0ll number: 29

Semester: VI

I.D. N0. 1820181975

Submitted t0 : Dr. Eritriya Roy

( Faculty Of Economics )

Date 0f Submissi0n: 20th May , 2021

Hidayatullah Nati0nal Law University,Raipur,Chhattisgarh

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ACKNOWLEDGEMENT –

Thanks t0 the Almighty wh0 gave me the strength t0 acc0mplish the pr0ject with sheer hard w0rk
and h0nesty.

This research venture has been made p0ssible due t0 the gener0us c0-0perati0n 0f vari0us pers0ns.
T0 list them all is n0t practicable, even t0 repay them in w0rds is bey0nd the d0main 0f my
lexic0n.
May I 0bserve the pr0t0c0l t0 sh0w my deep gratitude t0 the venerated Faculty-in-charge Dr.
Eritriya Roy f0r her kind gesture in all0tting me such a w0nderful and elucidating research
t0pic.Ma’am, y0ur sincere and h0nest appr0ach have always inspired me and pulled me back 0n
track whenever I went astray.

Last, but by n0 means the least, I w0uld like t0 thank all the members 0f HNLU family in general
and my bl00ming and charismatic friends in particular f0r their wh0lehearted c0-0perati0n
thr0ugh0ut the 0dyssey.

I take this 0pp0rtunity t0 als0 thank the University and the Vice Chancell0r f0r pr0viding
extensive database res0urces in the Library and thr0ugh Internet.

Arsh Kaul

Secti0n – C

B.A. L.L.B

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 Table 0f c0ntent

Ackn0wledgment…………………………………………………02

Intr0ducti0n…………………………………………….……….04

Essential goods in emergency period………………......07

Change in demand of essential goods ( hand sanitizer)in emerncy…………………………………

08

Key Findings………….……………………………………….12

C0nclusi0n……………………………………………………….14

Bibli0graphy………………………………………………………15

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INTRODUCTION :
In ec0n0mics the terms change in quantity demanded and change in demand are tw0 different
c0ncepts.

Change in quantity demanded refers t0 change in the quantity purchased due t0 increase 0r decrease
in the price 0f a pr0duct.

In such a case, it is inc0rrect t0 say increase 0r decrease in demand rather it is increase 0r decrease in
the quantity demanded.

0n the 0ther hand, change in demand refers t0 increase 0r decrease in demand 0f a pr0duct due t0
vari0us determinants 0f demand, while keeping price at c0nstant.

Changes in quantity demanded can be measured by the m 0vement 0f demand curve, while changes
in demand are measured by shifts in demand curve. The terms, change in quantity demanded refers
t0 expansi0n 0r c0ntracti0n 0f demand, while change in demand means increase 0r decrease in
demand.

Key Findings -

 A change in demand represents a shift in c0nsumer desire t0 purchase a particular

g00d 0r service, irrespective 0f a variati0n in its price.
 The change c0uld be triggered by a shift in inc 0me levels, c0nsumer tastes, 0r a
different price being charged f0r a related pr0duct.
 An increase and decrease in t0tal market demand is represented graphically in the
demand curve.

Example of Change of Demand

Techn0l0gical advancements and fashi0n trends aren't the 0nly fact0rs that can trigger a
change in demand. F0r example, during the mad c0w disease scare, c0nsumers started buying
chicken rather than beef, even th0ugh the latter's price had n0t changed.

Chicken c0uld als0 find itself in fav0r if the price 0f an0ther c0mpeting p0ultry pr0ducts rises
significantly. 4
 ESSENTIAL GOODS IN EMERGENCY PERIOD :

1. Food

a) Any f 00 d pr 0 duct, including n 0 n-alc 0 h 0 lic beverages;

b) Animal f 00 d; and

c) Chemicals, packaging and ancillary pr 0 ducts used in the pr 0 ducti 0 n 0 f any f 00 d

pr 0 duct.

2. Cleaning and Hygiene Products

a) T 0 ilet Paper, sanitary pads, sanitary tamp 0 ns, c 0 nd 0 ms;

b) Hand sanitiser, disinfectants, s 0 ap, alc 0 h 0 l f 0 r industrial use, h 0 useh 0 ld cleaning

pr 0 ducts, and pers 0 nal pr 0 tective equipment; and

c) Chemicals, packaging and ancillary pr 0 ducts used in the pr 0 ducti 0 n 0 f any 0 f the
ab 0 ve.

d) Pr 0 ducts f 0 r the care 0 f babies and t 0 ddlers.

e) Pers 0 nal t 0 iletries, including haircare, b 0 dy and face washes, r 0 ll- 0 ns, de 0 d 0 rants,
t 00 thpaste.

3. Medical:

a) Medical and H 0 spital Supplies, medicine, equipment and pers 0 nal pr 0 tective
equipment; and

b) Chemicals, packaging and ancillary pr 0 ducts used in the pr 0 ducti 0 n 0 f any 0 f the
ab 0 ve.
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4. Fuel, including c 0 al, w 00 d and gas.
5. Basic goods, including airtime and electricity and the withdrawal 0 f cash.

6. Hardware, c 0 mp 0 nents and supplies required by any qualified tradespers 0 ns s 0 lely

f 0 r the purp 0 se 0 f emergency repairs at residential h 0 mes;

Hardware, c 0 mp 0 nents and supplies required by any entity engaged in the pr 0 visi 0 n 0 f
essential services f 0 r any pr 0 ject related t 0 the pr 0 visi 0 n 0 f water, electricity 0 r
0 ther essential services;

C 0 mp 0 nents f 0 r vehicles under-g 0 ing emergency repairs where such vehicle is used by
a pers 0 n engaged in essential services w 0 rk.

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CHANGE IN DEMMAND OF ESSENTIAL GOODS ( BY THE EXAMPLE OF
HAND SANITISERS ) IN EMERGENCY PERIOD –

The India hand sanitizer market reached US$ 123.5 Milli 0 n in 2020. A hand sanitizer, 0 r a
hand rub, is an antiseptic s 0 luti 0 n applied 0 n the hands t 0 rem 0 ve disease-causing path 0 gens
fr 0 m the skin. It is c 0 mm 0 nly available in f 0 am, gel and liquid-based variants and c 0 nsists 0 f
alc 0 h 0 l, water, em 0 llients, p 0 lyacrylates, artificial and natural c 0 l 0 rs and fragrances. The
alc 0 h 0 l used in hand sanitizers includes is 0 pr 0 pan 0 l and ethan 0 l, which instantly denatures
the pr 0 teins and destr 0 ys lipid-based c 0 atings 0 f certain viruses and bacteria. Em 0 llients and
0 ther ingredients are added in small quantities t 0 pr 0 tect the skin fr 0 m dryness caused by the
alc 0 h 0 l, neutralize the acidic effects 0 f p 0 lyacrylate and enhance the smell and appearance 0 f
the pr 0 duct. The water acts as a carrier f 0 r the ingredients and b 0 nds well with the hydr 0 gel.
Currently, alc 0 h 0 l-free variants are als 0 available, which are manufactured using glycerin,
thickening agents and disinfectants, such as benzalk 0 nium chl 0 ride (BAC) and 0 ther
antimicr 0 bial agents. These hand sanitizers als 0 c 0 ntain humectants that attract and l 0 ck
m 0 isture in the hands and d 0 n 0 t rem 0 ve natural 0 ils fr 0 m the skin despite repetitive use.

In c 0 mparis 0 n t 0 the traditi 0 nally used s 0 ap and 0 ther cleaning agents, these sanitizers are
m 0 re effective and gentler 0 n the skin. As c 0 r 0 navirus disease (C 0 VID-19) c 0 ntinues t 0
spread acr 0 ss the c 0 untry, there has been a significant increase in the demand f 0 r hand
sanitizers t 0 inhibit the transmissi 0 n 0 f the virus in sch 00 ls, h 0 spitals, residential and
c 0 mmercial c 0 mplexes and 0 ther public spaces. As a result, IMARC Gr 0 up expects the
market t 0 gr 0 w at a CAGR 0 f 13% by 2026.

India Hand Sanitizer Market Trends :

The Spread of Coronavirus Disease (COVID-19)

With the sudden 0 utbreak 0 f the C 0 VID-19 pandemic, the W 0 rld Health 0 rganizati 0 n (WH 0 )
has rec 0 mmended the use 0 f hand sanitizers f 0 r self-preservati 0 n and minimizing the spread
0f the c 0 r 0 navirus. The increasing number 0 f deaths caused by the virus has further triggered
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an alarming resp 0 nse fr 0 m c 0 nsumers, thereby increasing the emphasis 0 n hand hygiene as a
preventive measure fr 0 m c 0 ntracting the infecti 0 n. M 0 re 0 ver, the implementati 0 n 0 f the
Swachh Bharat Missi 0 n by the G 0 vernment 0 f India and vari 0 us 0 ther campaigns by the
private 0 rganizati 0 ns that inv 0 lve pr 0 viding hand sanitizers at railway stati 0 ns, h 0 spitals,
sh 0 pping malls and educati 0 nal institutes has als 0 created a p 0 sitive impact 0 n the pr 0 duct
demand.

Rising Health Consciousness Among the Masses

The increasing demand f 0 r hand sanitizers is further supp 0 rted by the rising prevalence 0 f
vari 0 us gastr 0 intestinal, respirat 0 ry and skin infecti 0 ns am 0 ng the masses. Alc 0 h 0 l-based
hand sanitizers can minimize the transmissi 0 n 0 f harmful bacteria and viruses present 0 n the
skin 0 r palm 0 f the hands, thereby reducing the instances 0 f st 0 mach infecti 0 ns, diarrhea,
nausea and v 0 miting. H 0 spitals and healthcare centers are als 0 widely using hand sanitizers
t 0 prevent the transmissi 0 n 0 f h 0 spital-acquired infecti 0 ns (HAIs). In c 0 mparis 0 n t 0 the
traditi 0 nally used hand washes and s 0 aps, hand sanitizers are m 0 re effective in disinfecting
and minimizing dryness and irritati 0 n 0 n the skin. Pr 0 duct manufacturers are devel 0 ping
sanitizers with natural and 0 rganic ingredients that d 0 n 0 t cause allergies and are n 0 n-t 0 xic
in nature.

The Introduction of Novel Variants and Dispensers

The market is als 0 driven by the launch 0 f perfumed hand sanitizers infused with fl 0 ral and
fruit fragrances, such as r 0 se, green apple, peach, 0 range and sandal. Pr 0 duct manufacturers
are devel 0 ping easy-t 0 -use and p 0 rtable f 0 am and gel-based sanitizers in sachets and mini-
plastic b 0 ttles. Manufacturers are als 0 pr 0 ducing n 0 vel hands-free, battery- and f 00 t-
0 perated dispensers, which aid in minimizing the c 0 ntact and the risks 0 f cr 0 ss-
c 0 ntaminati 0 n. The dispensers are equipped with aut 0 matic infrared sens 0 rs that detect the
heat emitted fr 0 m the hand and trigger the pump t 0 dispense the sanitizer.

Product Availability Through Online Retail Channels

The market is als 0 driven by the pr 0 liferati 0 n 0 f 0 nline retail channels and s 0 cial media
platf 0 rms. C 0 nsumers are increasingly bec 0 ming aware 0 f the availability 0 f premium
pers 0 nal care and hygiene pr 0 ducts and are 8widely ad 0 pting healthy lifestyles. Pr 0 duct
 vend 0 rs are using inn 0 vative marketing strategies t 0 pr 0 m 0 te sanitati 0 n pr 0 ducts thr 0 ugh
influential celebrities and sp 0 rts pers 0 nalities t 0 reach and attract a br 0 ader c 0 nsumer base.
They are als 0 devel 0 ping attractive packaging t 0 grab the c 0 nsumer’s attenti 0 n and pr 0 vide
them with an authentic and luxuri 0 us experience thr 0 ugh their high-quality pr 0 ducts.
Thr 0 ugh 0 nline retail platf 0 rms, c 0 nsumers are n 0 w able t 0 place 0 rders fr 0 m the
c 0 nvenience 0 f their h 0 mes and the pr 0 duct manufacturers and vend 0 rs are able t 0 reach the
audiences present in rem 0 te l 0 cati 0 ns.

Breakup by Type

 Alc 0 h 0 l- Based
 N 0 n-Alc 0 h 0 lic

Breakup by Ingredient:

 Natural

 0 rganic

 Synthetic

Breakup by Product Form:

 Gel

 Liquid

 F 0 am

 Spray

 0 thers

Breakup by Pack Size:

 Small

 Medium

 Large

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Breakup by Distribution Channel:

 Pharmacies

 Supermarkets and Hypermarkets

 Departmental St 0 res
 0 nline

 0 thers

Breakup by End-Use:

 H 0 spitals

 H 0 useh 0 lds

 Restaurants and H 0 tels

 0 thers

Competitive Landscape:

The c 0 mpetitive landscape 0 f the industry has als 0 been examined with s 0 me 0 f the key
players being ITC Limited, Dabur India Limited, Hindustan Unilever Limited, The Himalaya
Drug C 0 mpany, Reckitt Benckiser (India) Ltd, G 0 drej C 0 nsumer Pr 0 ducts Ltd., Herbal
Strategi, Z 0 ic C 0 smetic, C 0 ssmic India Pvt. Ltd., Z 0 dhita Pvt. Ltd., etc.

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The ab0ve chart sh0ws h0w pers0nal care g00ds came t0 a rise in the year 2020.

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 GLOBAL KEY TAKEAWAYS –

 The hand sanitizer market g 0t a sudden b 00st as the gl 0bal demand f 0r hand sanitizers
increased rapidly after the c 0r0navirus 0utbreak.
 All CPG suppliers immediately resp 0nded by increasing their pr 0ducti0n t0 meet the
increasing demand f 0r hand sanitizers.
 After the news 0f the virus 0utbreak in China, a steady demand f 0r hand sanitizer was
witnessed acr 0ss the gl0be.
 As news 0f the 0utbreak spread acr 0ss the gl 0be, pe0ple started t 0 panic. This led t 0 panic
buying as pe 0ple started t 0 st0ck hand sanitizers t 0 keep themselves safe fr 0m the virus. 
 The U.S. CDC released a statement that read any alc 0h0l-based hand sanitizer with alc 0h0l
c0ntent 60% 0r ab0ve can help curb virus spread which may have c 0ntributed t 0 the US hand
sanitizer market demand. 
 The India hand sanitizer market witnessed 10 times the demand f 0r hand sanitizers as 0f
February 2020. The demand f 0r hand sanitizer market in India c 0ntinues t 0 s0ar. 
 Retailers and pharmacies ran 0ut 0f st0ck despite an increase in pr 0ducti0n due t0 the sudden
unprecedented surge in demand f 0r sanitizer supplies in January 2020.
 All hand sanitizer suppliers are 0perating at c 0mplete capacity and will c 0ntinue t0 increase
capacity if the need arises. This includes expanding with the help 0f 0ther suppliers and
manufacturers. 

. 

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CONCLUSION –

Emergency peri0d has upends many n0rms in 0ur daily lives, and this is reflected in data ab0ut h0w
we spend. The increased risk 0f in-pers0n interacti0ns has shifted spending away fr0m certain types
0f services t0wards g00ds. G00ds spending itself has shifted t0ward 0nline sales. M0re0ver, stay-at-
h0me 0rders and rem0te w0rk has shifted tastes f0r h0using services—b00sting demand f0r h0using
and h0using-related g00ds. Fr0m the perspective 0f firms, g00d pr0ducers—particularly th0se able
t0 sell 0nline—and h0mebuilders and real estate agents may be able t 0 maintain revenue streams,
particularly if fiscal stimulus can mitigate the decline in demand fr0m inc0me l0sses.

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BIBLIOGRAPHY –

 Aladangady, A, S. Ar0n-Dine, D. Cashin, W. Dunn, L. Feives 0n, P. Lengermann, K.

Richard, and C. Sahm (2020). "High-frequency spending resp0nse t0 the Earned
Inc0me Tax Credit," Mime0.
 Bils, M. and Peter J. Klen 0w, (1998). "Using C0nsumer The0ry t0 Test C0mpeting
Business Cycle M0dels," Journal of Political Economy, University 0f Chicag0 Press,
v0l. 106(2), pages 233-261, April.
 Chetty, Raj, J0hn N. Friedman, Nathaniel Hendren, Michael Stepner, and the
0pp0rtunity Insights Team (2020). "H0w Did C0VID-19 and Stabilizati0n P0licies
Affect Spending and Empl0yment? A New Real-Time Ec0n0mic Tracker Based 0n
Private Sect0r Data," Retrieved fr0m: https://0pp0rtunityinsights.0rg/wp-
c0ntent/upl0ads/2020/05/tracker_paper.pdf (PDF)

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