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March 9, 2022
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Face mask business seeks its future in the face of less use

This will be the first day without face masks in the open air in 451 municipalities

Since last March 1, Colombians have been able to say goodbye to the mask in open spaces. This new pattern of behavior, which is reached thanks to an optimal level of vaccination against the covid-19 virus, also attacks winds of change to the companies that market these medical supplies.

(Tips for removing the mask in open spaces).

And it is that the mask became a fundamental element for the “new normality” of citizenship. So much so, that today it can be found from pharmacies to clothing stores of recognized brands.

“This uprising affects the decrease in consumption, but it leaves a market that did not exist before, which is that of consumers for self-protection, that even if they tell you that it is not mandatory, you still continue to use it for prevention,” Ingrid Barrero, told Portfolio. general manager of Industrias Saver, a mask manufacturer, in Barranquilla.

With 24 years dedicated to the N95 respirator market, Barrero maintains that just as the pandemic opened up new export markets for their products, this uprising which he considers “very hasty”obliges manufacturers and marketers to “reinvent yourself”.

(Without masks, lipsticks return to the country).

“The manufacturers of face masks and respirators knew that it was temporary, but we are clear that this opened doors for us to new markets that did not exist before. I believe that we must challenge the changes and reinvent ourselves according to the opportunities that arise, “said the executive.

This way of expanding “the vision of the business” is also shared by Rafael Piñeros, general manager of Biobolsa, a company that is responsible for the manufacture of non-woven fabrics, key for masks.

“It is a moment to which we have arrived both in Colombia and in other parts of the world, for which we must be prepared to expand business vision and focus it on specialization, since at this time the commercialization of face masks will be reduced due to the drop in infections and the effectiveness of the vaccine (…) This is a product that has been used for a long time in the medical sector and in other industries, which allows its manufacture to continue,” said Piñeros.

BUSINESS FIGURES

According to data collected by the ANDI Chamber of Medical Devices and Health Supplies, between the first and second quarters of 2020, the medical supply presented a trade deficit of US$119 million, where the value of its imports, US$142 million, exceeded by six times the value of its exports of US$23 million.

(Colombia reaches two years of pandemic with pending challenges).

Subsequently, with the entry into force of a tariff decree, the Government implemented a 15% tax on imports of this medical implement and divided the tariff subheadings into two to differentiate between masks for hospital use and the rest.

Thus, according to data from the aforementioned trade union chamber, imports of face masks and masks for hospital use totaled US$2,879.8 billion in 2021, which means a drop of 88.4% compared to 2020, when they totaled US$24,883.445 million. .

Regarding imports, these registered a drop of more than 90% going from US$4,235,750 million in 2020 to US$349,422 million in 2021.

These numbers are explained by the fact that the local manufacture of masks doubled between 2019 and 2020, going from 32 health records to 70 health records.
“The immediate effect was in the exclusion of the category of unavailable vital and the fall in purchases abroad for imports,” says the ANDI report.

Next, the report points out that international bidders “not only increased in number of production units” but also in installed capacity. With which “in Colombia we went from importing face masks to buying machines to make them locally,” said the union report.

WHAT IMPORTERS SAY

Both local and multinational companies agreed that the decision to lift the use of face masks outdoors will also affect them.

“We hope that, as the restrictions that arose in the framework of covid-19 begin to ease, the demand for this type of product begins to decrease considerably,” said the American 3M, which assured that it is a “hasty decision ”.

According to their report, in 2021 sales of this type of protector fell 2.2% compared to the immediately previous year.

Giovanni Casallas, manager of the Ukaint marketer, assured that just as they expect a decrease in sales as demand falls, they also believe that “we would return to the previous market, but if we believe that the level of sales will be higher than what we had in the pandemic because the mentality has changed a lot”.

According to Analdex, BYD Motors Colombia, Ukaint and 3M Colombia led external purchases in 2021.

ROBERTO CASAS LUGO
BRIEFCASE

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